Stocks and Precious Metals Charts - Fear of Mispriced Risk Is Sucking The Oxygen Out of the Markets

Estragon: We always find something, eh Didi, to give us the impression we exist?

Samuel Beckett, Waiting for Godot


"This is where policy errors begin to happen, when the Fed cannot acknowledge they're actually damaging the economy."

Danielle DiMartino Booth

DDB is describing the credibility trap.

The markets are just slip-sliding sideways here, waiting for something to happen.

I could comment on the Democratic debates. If I had watched them.

Trumpolini is on his way to the G20 in Osaka.

I will be very surprised if any good comes out of it.

Have a pleasant evening.

Admittedly, the latter part of the 60's and most of the 70's are a bit hazy in spots. But I am almost certain that I saw this local (Youngstown) band perform live at a dance club in northeastern Ohio, the home of my missspent youth.

Stocks and Precious Metals Charts - Downward Spiral of Dumbness

"Ideologues are often willfully blind, on both the right and the left.  It serves them. Their selective blindness allows them to avoid thinking seriously about the world—  and especially the state of their own souls. 

Most of their lives are spent in the expedient serving of themselves.  The good they do, the good things they may think, the public service that they may provide is generally inner directed.  It is designed to make themselves feel good about themselves, and superior and apart from other people, whom they secretly despise.

They are incapable of genuine repentance, because they blind themselves to their sins, and wash them away in their disgust with others whom they imagine are so much worse."

Jesse


“The downward spiral of dumbness in America is about to hit a new low.”

Hunter S. Thompson

Another exciting day in the markets, as they nervously move from foot to foot, waiting to see what happens next in the world, from Iran to the G20.

Gold and silver were off day. No surprise there, since the lucky holders of in-the-money call options from yesterday end up holding futures contracts today. The wiseguys always like to give them a little test on those new positions.

But let's face it. The metals have had one heck of a run, and are due for a little back and fill consolidation here.

Stocks remain a bit of an edgy deal, since they have come back so briskly from the big December sell off.

It still seems that they are priced for a rosy scenario that does not exist and is in fact falling apart.

But, since the music is still playing, the players will keep dancing.

Need little, want less, love more.

Have a pleasant evening.

Stocks and Precious Metals Charts - Metals Take a little Gut Punch For Comex Options Expiration

Stocks were correcting today, sliding more into the afternoon and the close.

The economic news this morning regarding new home sales and consumer confidence was fairly bad.

Gold and silver were rallying in the overnight, with gold hitting $1440, but alas, gold had reached a short term limit and took a hit during the day, dropping all the way to 1411, but bouncing back to the 1420s.

Did I mention that today was an option expiration on the comex? And yes it was.

But still, given the strength of the rally that the metals have shown in the past couple of weeks, who are we to complain?

I posted some thoughts in a chart on the longer term gold price last night. You can scroll down to it.

The Dollar bounced back a little today. But it probably has more correction to go after its own long rally.

We are going out for a hot pot dinner this evening.   While my son was in London the past few weeks he and his girlfriend went to the new Hai Di Lao hot pot restaurant there. There was a 2 1/2 hour wait for a table late on a Thursday night, but he said it was worth it.

Hai di Lao is a global restaurant phenomenon that has made a fortune for its owners.  There are over 3,000 locations worldwide, but alas, there are only three in the US, all in California.  But there are some less prestigious but very good local places around the NYC metro area.   It is a fun social or family event in addition to a good meal.

Need little, want less, love more. For those who abide in love abide in God, and God in them.

Have a pleasant evening.

Long Term Gold Chart with Support and Resistance and Potential Objectives to $2,000

Here is a multi-year look at the gold chart, from the bull leg to the top, a decline, and the multiyear consolidation pattern that seems to have completed.

It is good to have a broader picture of where we have been, in order to see where we may be going.

Let's take this one step at a time.