Stocks and Precious Metals Charts - Boss, Da Tweet, Da Tweet - Stock Option Expiration this Friday

“The narcissist devours people, consumes their output, and casts the empty, writhing shells aside.”

Sam Vaknin

Stocks reversed their early declines and went on a rocket launch higher, and gold tanked after a strong overnight rally,

All thanks to a tweet suggesting that the Trump Administration would have a phone call with China after all. Call me!

The man-child gets his kicks by being able to pull levers with a few strokes of the keyboard.  His acolytes and well-heeled entourage enjoy the foreknowledge of major market reversals. Trading on privilege and connections— that's what they do.

The CPI came in a little hot on the core this morning, giving some juice to the doleur du monde DX index, on the hopes that the economy is really strong after all, and the Fed will not have to cut rates much after all.

I was waiting to see how they might pull the trigger on this option expiration week, and we were certainly not disappointed.

It was an opportunity if one was set up for it. It is hard to be too cynical about our governing elites.

And if not, better to just ignore these jokers and their antics.

Let's see how the rest of the week goes, and how many turns on the tilt-o-wheel the financial system can take.

Have a pleasant evening.

Performance of Various Assets of Interest In Several 'Market Crashes'

Let's lead off with a 'where we are to date' chart.

1929 is perhaps not a good example becuase there was a major repricing of gold involved.

But the dot-com bubble crash and the market debacle of 1987 may suffice.

I epseically like the dot-com bubble example as an analog for today.

Gold Longer Term Chart Formation Targets $1825

Despite the stock option expiration shenanigans and tweet driven, government-banks sponsored harmony of illusions of recovery, the longer term chart formation on gold remains intact.

Here is an earlier view and one updated for today.

I would expect a retest of the all time high from 2011 as well.

Stocks and Precious Metals Charts - Flight To Safety - Stock Option Expiration on Friday

"He made me understand, speaking to me saying, 'I have come to give you insight and understanding. At the beginning of your prayers for mercy the command was given, and I have come to tell this to you, for you are greatly loved. Therefore consider these words, and understand this vision.'"

Daniel 9:22-23


"So then, from now on, obey the Lord.  Do not be stubborn and stiff-necked any more. For the Lord your God is the God of gods and the Lord of lords.  He is the great and powerful God and is to be honored with fearful respect. 

He does not show favor, and cannot be bought with money.  He does what is right and fair for the orphan and the widow.  He shows His love for foreigners by giving them food and clothing.  So show your love for foreigners and strangers as well.  For you too were foreigners and strangers in the land of Egypt.  Fear the Lord your God.  Work for Him, hold on to Him, and hold the truth in His name.  For He is your glory and your God."

Deuteronomy 10:16-21

Stocks dropped steadily today, going out near the lows of the day.

The recent rally back from the previous plunge has ended, at about the fifty percent retracement level.

Gold rose sharply to $1520 in the afternoon before settling back to $1511 in what was a clear flight to safety.

This is the cash 'spot' price.  The continuous contract futures actually rose to $1531.

Silver had some participation, but does not have the same effect in an initial flight to safety.

Gold leads the way, but silver follows, often with bounding energy.

I have long term holdings in both metals. There is no need to favor one or the other over time.

What exactly sparked such a dramatic 'flight to safety?'    Information is being disseminated asymmetrically.  So we may have to wait a little while.

There will be a stock market option expiration on Friday.

Have a pleasant evening.