Stocks and Precious Metals Charts - Trump In India: Orange is the New Saffron - Stocks Blindsided By Reality

"Reality is that which when you stop believing in it, it doesn't go away."

Philip K. Dick


"I'm not crazy about reality, but it's still the only place to get a decent meal."

Groucho Marx

Stocks were utterly hammered today in the US, as the realization that the coronavirus is a serious exogenous effect on the global ecnomy has finally penetrated the exceptionalism of the Wall Street elite and their handmaidens in the media.

What a surprise. Who could have seen this coming? Especially when they had their eyes squeezed shut.

The coronavirus is highly contagious and partiicularly tough to contain. Thank God that so far it seems to have a low mortality rate, as pandemic viruses go.

I think the fragility of the system as it is may be magnifying its effects.  And the general nuttiness of the corporate media, clickbait sites, and a sizable minority of the public for whom reality is just an optional viewpoint.

The safe havens caught an obvious bid, with gold rising to $1690 before *someone* decided to dump a billion or so in contracts on the market.

Oh yeah, there will be a Comex Option expiration for March tomorrow.

For gold March is a relatively light contract, compared with April which is a much bigger month this time of year.

Not so for silver, with March being a much more significant expiration.

Still, any excuse for a solid market manipulation. One thing you can say for our financial class— they are almost never too lazy to steal.

I suspect we will be seeing a rather volatile market over the next month or two, or more.

The spokesmodels kept asking today if the decline was 'orderly' and when would the Fed intervene.

Orderly means much more downside in the weeks ahead, if they don't know it. It is going to take a panic to set a bottom in this latest manifestation of the bubble economy created by and for the financial class.

Trumpolini has taken his show on the road, and is conducting his latest rally in a stadium in India.

Why not?

Year-to-date assets chart below.

The world and its servants do not love you.

They lie to you, and cheat you, to enslave you, first by hate, and then by fear.

Remember who you are, the light you follow, and to whom it is that you belong, always.

Have a pleasant evening.

Sunday Evening - Lead Kindly Light

Lead, kindly Light, amidst the grey and gloom
The night is long and I am far from home
Here in the dark, I do not ask to see
The path ahead— one step enough for me
Lead on, lead on, kindly Light.

I was not ever willing to be led
I could have stayed, but I ran instead
In spite of fear, I followed my pride
My eyes could see, but my heart was blind
Lead on, lead on, kindly Light.

And in the night, when i was afraid
Your feet beside my own on the way
Each stumbling step where other men have trod
Shortens the road leading home to my God,

Lead on, lead on,
My God, My God,
Lead on, lead on, kindly Light.

Audrey Assad, based on The Pillar of the Cloud by J. H. Newman

The world and its servants do not love you.  Far from it.

They lie to you, and seek to cheat you, and enslave you, first by hate, and then by fear.

Remember who you are, what light you follow, and to whom it is that you belong, always.

“May He support us all the day long, till the shades lengthen and the evening comes, and the busy world is hushed, and the fever of life is over, and our work is done.

Then in His mercy may He give us a safe lodging, and a holy rest, and peace at the last."

J. H. Newman

Stocks and Precious Metals Charts - Gold Breaks Out - Freedom From Darkness and Despair

"There seems little question that in 1929, modifying a famous cliche, the economy was fundamentally unsound.  This is a circumstance of first-rate importance.  In 1929 the rich were indubitably rich.  The figures are not entirely satisfactory, but it seems certain that the five per cent of the population with the highest incomes in that year received approximately one-third of all income.

The proportion of personal income received in the form of interest, dividends, and rent – the income, broadly speaking, of the well-to-do – was about twice as great as in the years following the Second World War.

This highly unequal income distribution meant that the economy was dependent on a high level of investment or a high level of luxury consumer spending or both.  The rich cannot buy great quantities of bread.  This high bracket spending and investment was especially susceptible, one may assume, to the crushing news from the stock market in October 1929."

John Kenneth Galbraith, The Great Crash of 1929


"Time is a flat circle.  Everything we have done or will do we will do over and over and over again— forever.  This place is like somebody's memory of a town, and the memory is fading.  It's like there was never anything here but jungle. "

Rust Cohle, True Detective


"It begins with a highly complex financial system, whose very complexity makes it difficult for anyone to know what might be going wrong; by definition, the multiple parts of the financial system are linked, which means that trouble in one institution, city, or region can travel easily and quickly to others.

Buoyant growth in the economy makes the financials system more fragile, in part due to the demand for capital and in part due to the tendency of some institutions to take on more risk than is prudent.  Leaders in government and the financials sector implement policies that advertently or inadvertently increase the exposure to risk of crisis.

An economic shock hits the financials system. The mood of the market swings from optimism to pessimism, create a self-reinforcing downward spiral."

Robert Bruner and Sean Carr, The Panic of 1907


"For this is God's love for us, that we keep His commandments.   They do not repress us, for everyone who has been reborn in God can overcome the world.   And this is the victorious power that conquers the world— our faithfulness.

1 John 5:3-4


“If you are faithful to my words, you will be my disciples.  And you will know the truth, and the truth will set you free.”

John 8:31-32

Some weaker than expected economic news, and the reality of the coronavirus, helped to despress stock prices today.

Especially since the option expiration was today, and the wiseguys had already done half the job by jacking the markets up earlier this week.

Gold has broken out of its 'W' or double bottom formation.

We may see some retracement back to test former resistance, but for now it looks like a trip uptown for the yellow dog.

And silver is going along for the ride.

I have to run to the airport so that's all for now.

Have a great weekend.

Stocks and Precious Metals Charts - Weighed and Found Wanting - Stock Market Option Expiration Tomorrow

"Do you not know that to whom you give yourselves as servants, their servants you become, whether servants of a corruption unto death, or of a righteousness unto life?"

Romans 6:16


"You are of your father the devil, and your will is to fulfill your father's desires.  He was a murderer from the beginning, and does not stand with the truth, because there is no truth in him.  When he lies, he speaks from his own character— for he is a liar and the father of lies."

John 8:44

Stocks declined hard about 11 AM today.

There was a strong print on the Philly Fed that had stocks rallying.

But the headlines from China and other regions showed, at least to the ever observant algos, that the current narrative of the elites about this coronavirus is so much wind.

It is a major exogenous force that should not be ignored.

I strongly suspect that Trumpolini and his Merry Pranksters, along with the usual serial felons on Wall Street, are  propping up the market, because this is his premier accomplishment.

Do you think that he or his minions would hesitate for one minute to do this? 

It is a bubble, and now becoming a ponzi scheme for the transfer of wealth, again.

The Fed and others in possession of a voice for speaking out are complicit in this, for the obvious reasons of cowardice and greed.

At some point the stock market is going to dump, and hard.    Much worse than the fourth quarter of last year, at which time the Fed kicked in billions of 'not-QE.'

I suspect the usual suspects would like to string this out until after the November election, but I don't think they can do it.

And so we have a quiet flight to safety in gold, and to the Dollar. 


Have a pleasant evening.