SP 500 and NDX Futures Daily Charts - Hope Isn't the Only Thing That Floats

Stocks came in weakly, but clearly had a push under them throughout the day.

Techs led the way higher, while the SP 500 lagged, weighed down in part by the awful earnings from Morgan Stanley and the financial sector.

After the bell IBM missed and lowered forecasts.

The Street would like to keep stocks growing higher for now.  Let's see if they can keep it going against such light selling.

Have a pleasant evening.

Martin Luther King: The Drum Major Instinct

The 'drum major instinct' according to Martin Luther King is the impulse to lead, to be praised, to be the center of attention, and to have more than others.

 It can become the basis of pride and selfishness, and corrosive to society, our relationships, and our personal well being.

Stephen Kinzer: The Brothers - Rise of Exceptionalism and Aspirations of Empire

“Exceptionalism”—the view that the United States has a right to impose its will because it knows more, sees farther, and lives on a higher moral plane than other nations—was to them not a platitude, but the organizing principle of daily life and global politics...

With a glance, a nod, and a few words, without consulting anyone other than the President, the brothers could mobilize the full power of the United States anywhere in the world."

Stephen Kinzer, The Brothers: John Foster Dulles, Allen Dulles, and Their Secret World War

Shanghai Gold Exchange Withdrawals Running at Record Pace

Withdrawals of gold from the Shanghai Exchange alone are at 1,958 tonnes for the year.   The first chart below compares that pace to the prior years.

As I noted the other day, the mispricing of value and risk in the gold market, primarily driven by traders in London and New York, is calling a form of Gresham's Law into action.

Gold in the New York and London vaults is heavily leveraged and hypothecated.  The full extent of this is not disclosed and can only be surmised.

If the tide of gold keeps going out at these amounts, we will see who is wearing what, as the old traders say.

Is this a 'problem' that we need to save them from?  Hardly.  This is a problem which they have created by manipulating this market and trading it with reckless disregard as they have done with so many others.

The only 'help' they require is to allow the market to set the price, and abide by some modest rules of leverage and risk management, rather than sacrificing safety and fairness for short term gains.

Gold is flowing from West to East.  Of this there should be little doubt except for the most hardened apologists for the bullion banks.