SP 500 and NDX Futures Daily Charts - Wash and Rinse Day - Surreal

So after the bell, here was one of the more surreal things I have seen lately, and that is saying a lot in this environment.

 

Cory Johnson of Bloomberg TV was pounding the table about LinkedIn after the bell, while their ticker showed the stock getting absolutely eviscerated, down over 20%.

I like CJ, and think he is just caught up in the silicon nonsense of stocks that are priced beyond perfection.   Yes Cory, the stock is growing.  But the momentum guys took it to an absurd level where any sniff of reality resulted in a pricing conflagration.

 

Get used to it.  There are a lot of artificial puffballs out there.  

This is a dangerous market. One of the more technically dangerous I have seen since 1987 and the tech bubble.

Be careful out there.

Have a pleasant evening.

 

 

 

NAV Premiums of Certain Precious Metal Trusts and Funds - Silver Active In May Delivery Report

"We looked into the abyss if the gold price rose further. A further rise would have taken down one or several trading houses, which might have taken down all the rest in their wake.   Therefore at any price, at any cost, the central banks had to quell the gold price, manage it."

Sir Eddie George, Governor Bank of England 1993-2003

 

And I think they have been desperately attempting to cover up the consequences of their poor decision making in in bailing out the speculative interests of their banking cronies for the past sixteen years, while digging the hole in which they found themselves ever deeper.

 

The expected FOMC slam on the metals happened this morning with the news that new unemployment claims were much lower than expected.

That the economic news this morning also showed *zero* growth in personal income was ignored. 

Jobs without living wages.   Is this like making bricks without straw?

May is an active month for silver, but not for gold.

So we saw a spike for silver in the delivery report from yesterday as May becomes the silver front month.

I have included that report below. As a reminder, although the number of ounces is large, the volumes moving around the warehouses are also larger than gold.

Still, I wonder what the wiseguys will do if silver ever becomes in short supply, since the central banks do not hold any, and the US long ago depleted its strategic supply.

 

What happens when there is a run on the bullion banks again?

 

Excess leverage on supply constrained assets.  Ain't it a bitch?

 

Post FOMC Metals Rig: Right On Schedule

This is what the pampered princes of privilege do when they fail.

 

They try to hide it.  They lash out.   They cheat.

 

They are petty.  But vicious when frightened.

Most of the successes they have obtained throughout their lives have been gained by cheating, using inside information, rigging the game, exercising influence, position, and privilege.

They twist the fabric of society to weave their robes.

 

They make and break the rules to suit themselves and their friends.

 

They make our markets into bucket shops.  Our laws are just pieces of paper.

 

They try to make other people pay for their mistakes.

 

As they have been doing all throughout their lives.

Success.   They deserve it, one banal and disreputable way or another.

For the good of the system.   

 

 

 

Gold Daily and Silver Weekly Charts - A Policy of Plunder and the Sickness Unto Death

"An elite class that is free to operate without limits - whether limits imposed by the rule of law or fear of the responses from those harmed by their behavior - is an elite class that will plunder, degrade, and cheat at will, and act endlessly to fortify its own power."

Glenn Greenwald

"You!  You made us in the house of pain!   You made us... things!

Not men. Not beasts.  Things!"

H. G. Wells, The Island of Dr. Moreau

 

After the bell Moody's cut Greek bonds to CAA2 with the outlook negative.   Greece is facing the gravest threat to its national sovereignty, even worse than the American supported military regimes of the 'Greek colonels,' since 1941.

Who will be next?   Who can stand against the dark power of the world, and wickedness in high places?   C'est la guerre, sans fin.  Ainsi soit-il.

There was intraday commentary about the Fed's policy statement here.

Ex-accounting gimmicks, the US economy contracted in the first quarter.  The BEA fudged this advance estimate a bit, showing one of the lowest positive numbers possible,  but the economy is obviously teetering on recession driven by stagnant wages, policy errors leading to asset bubbles, and weak aggregate demand.   It is not that people are 'saving too much.'  The problem is that too many people have too little income.

They will show a revision of the truth at some point when no one cares as much about it.  The credibility trap forbids Beltway Washington from being honest critics of their policy and political failures to reform.  
 

I found it amusing that a few minutes after the Fed statement financial TV announced that 'gold was dropping,' and continued with that theme throughout the afternoon, without mention of the dropping dollar or stocks.  

Gold declined from 1210 to 1206 to the dollar.

Reports from The Bucket Shop show that 'deliveries,'  which are the exchange of claim checks, and warehouse movements were relatively quiet.

 

The bankers and financiers will have another shot at managing our perceptions of their own incompetence tomorrow.

 

I am keeping an eye on the upcoming elections in the UK.   As you know Europe and the UK are 'bellwethers' of a sort in my thinking.  

The situation in Greece might be more influential than some would allow.

The political and economic situation in the States is 'simmering.'

Uncle Oligarch, wrapped in the flag, is pushing the TPP with an almost desperate zeal.   It is surprising how many politicians and professionals have been 'rented' by corporate money in support of the cause.  

Smells like teen spirit.

 

Things are unfolding as badly as even a most cynical man might expect, alas. 

And so a group of fools, driven by greed, will push their perceived advantages, blind to the consequences, even to the point of plunging into the abyss.

They see strength and power in numbers, for they are many.

 

Have a pleasant evening.