16 September 2014

Gold Daily and Silver Weekly Charts - Straining


"The first item on my agenda would be to restore democracy to the United States of America by overturning this disastrous Citizens United Supreme Court decision.

Why do I put that issue first? Why not health care, why not jobs?  Because if you end up with a Congress or with governors or legislatures who are beholden to the billionaire class, we are never going to make progress on any issue that impacts working families.

And in my very strong opinion — and I speak to you as chairman of the veterans committee in the Senate — I do not believe that people fought and died for democracy so that billionaires can buy elections.”

Bernie Sanders

A number of people have remarked upon the ballooning open interest in the silver market on the Comex. When the number of open contracts goes higher on a down movement in price, that is more indicative of short selling than of longs selling their contracts and closing them out, obviously.

I also hear that there was a remarkably large expansion in the inventory of SLV the other day, causing some of wonder at the source of all that silver.

It is difficult to understand what is true and what is not in these markets. And that in itself ought to give you some concern about their veracity.

This decline in character is sad. But this too shall pass.

Have a pleasant evening.




SP 500 and NDX Futures Daily Charts - Within Striking Distance of a New Dow All Time High


"Do you know what you are singing about? You are singing of brotherhood, but in your face you look like you hate everyone. That will show in your music."

Arturo Toscanini

Stocks were in rally mode today as Wall Street looks forward to tomorrow's FOMC decision. Because of the weaker economic data, there were more hopes that the decision would not contain any hawkish language.

I expect the taper to continue on schedule. I do not think that the Fed will do anything new just yet.

After the bell the President tried to reassure the American people that the ebola outbreak in Africa would not spread to US shores, and if it did, it would be quickly quarantined.

Geopolitical risk was apparently off the table today.

It is hard to be too cynical about these markets. Alibaba is on the way.

Have a pleasant evening.





15 September 2014

Gold Daily And Silver Weekly Charts - Struggling


"A great deal of intelligence can be invested in ignorance when the need for illusion is deep."

Saul Bellow

The precious metals futures on the Comex were struggling most of the day, with both gold and silver ending just a little higher.

The Comex warehouse activity is not worth mentioning.

Gold is moving from West to East. China is clearly executing some longer term plan with regard to gold and its own fiat money as a reserve currency.

Let's see what happens.




SP 500 and NDX Futures Daily Charts - Fight For the Right to Party


"Men, it has been well said, think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, and one by one."

Charles Mackay

Techs were struggling most of the day, as the SP 500 showed some futures driven resilience.

The Empire Manufacturing number came in high side, but the actual Industrial Production came in negative, with last month being revised in half. Go figure.

There will be an FOMC decision on Wednesday. With the Alibaba IPO in play, I don't think we will see the markets fall appreciably unless there is a serious break in the geopolitical stability.

Have a pleasant evening.