Stocks and Precious Metals Charts - Bumping Up - Comex Option Expiration Next Week

“The whole edifice of modern financial theory is, as described earlier, founded on a few simplifying assumptions.  It presumes that homo economicus is rational and self-interested.  Wrong, suggests the experience of the irrational, mob-psychology bubble and burst of the 1990's.  A further assumption: that price variations follow the bell curve. Wrong, suggests the by-now widely accepted research of me and many others since the 1960's.”

Benoît B. Mandelbrot, The (Mis)Behavior of Markets

There will be a gold option expiration on the Comex next week.

Stocks are once again bumping their heads on the prior highs.

Gold attempted to break out of its current consolidation pattern today, but failed to hold the close.

Have a pleasant weekend.

Stocks and Precious Metals Charts - The Walking Dead and the Markets

"But I have always been seated in first class!  Let me talk to your supervisor."

“When you see clouds forming in the west, you say, ‘A storm is gathering’? And then the rains come. And when you feel the south wind blowing, you say, ‘Hot weather is on the way.’ And so it happens. What hypocrites you are. You are so good at forecasting the weather, but you are totally unwilling to accept the spiritual significance of the times in which you live. You can’t even think for yourselves, and choose what is righteous and good."

Luke 12:54=57


"I urge you, brothers and sisters, to be wary of those who cause divisions and undermine the faithful, in opposition to the teaching that you have learned. Avoid them. For such people do not serve our Lord, but their own appetites. And by clever words and flattery they deceive the hearts of the innocent and naive."

Romans 16:17-18

The markets appear to be on edge.  A reckoning seems to be coming.

It is probably only a matter of time, given the sheer amount of brazen shamelessness and lying.

The mispricing of risk is doing its bad work.  And some day in the not too distant future, some market sector, rotten with hidden risks, will rise up like a horde of the walking day, and assault the financial markets as had happened in 2008.

They be doing so already, given the huge amounts of money that the Fed is being required to administer to the Banks, now on a daily basis and in size.

And as for yourself, and the things that truly matter, do not follow this one, or that one.  Or believe in this school, or that school.  Or be excited and disquieted and misled by false words and flattery from demagogues and con men.    When you are judged you will not be asked who you know, and what influences and groups you may have followed as you do now.

For you know without a doubt that the things which you loudly and proudly proclaim now will seem useless and utterly impertinent and foolish then.

Rather, walk with God, with your eyes on His light as He has given it, and let others follow as best that they may.  For they will answer for themselves, as you will answer for your own.

Have a pleasant evening.

Stocks and Precious Metals Charts - The End of the Line - Tortured Reason Tries to Leave the Building

"Violence in the voice is often only the death rattle of reason in the throat."

Henry George Bohn


“When you go far enough to the right you meet the same idiots coming around from the left."

Clint Eastwood, Interview, Time Magazine, February 20, 2005


"He who makes a beast of himself gets rid of the pain of being a man."

Samuel Johnson

Let's see which way these markets, which are becoming increasingly wound up, will break.

I think it comes down to a race between a manufactured delusion and realities.

I can't believe that Zuckerberg played the China fear card today in his Congressional testimony.  What a tool.

This is Idiocracy 2.0.   All of it.  

Lord have mercy!

Have a pleasant evening.

Stocks and Precious Metals Charts - Devil Take the Hindmost

"An investigation into the rigging of Libor, the benchmark interest rate that tracks the cost of borrowing cash, has been unexpectedly closed.  The decision comes despite evidence that implicates the Bank of England. It means no one will now be prosecuted in the UK..."

Andy Verity, BBC, Libor rigging inquiry shut down by Serious Fraud Office


"Preserving its historical role, gold continues to be one of the safest assets in the world, which enhances stability and confidence even under normal market circumstances...

The importance of gold in national and economic policy strategy has increased recently, with both holding precious metal within the country and increasing its stock being part of a dominant international trend...

In recent years, an increasing number of countries have decided to again designate a dominant role to this precious metal functioning as a traditional reserve asset and to increase their gold reserves."

Central Bank of Hungary (Magyar Nemzeti), Hungary's gold Reserves Increase Tenfold, Reaching Historical Levels


“A mighty bubble of wealth is blown before our eyes, as empty, as transient, as contradictory to the laws of solid material, as confuted by every circumstance of actual condition, as any other bubble which man or child ever blew before.”

Edward Chancellor, Devil Take the Hindmost


"They run all away, and cry, 'the devil take the hindmost'."

Beaumont and Fletcher, Philaster, or Love Lies a-Bleeding

Despite all the happy talk, nothing has changed.  Not one thing.

Have a pleasant evening.