Stocks and Precious Metals Charts - Tesla the 'Story Stock Deluxe' - Precious Metals Soar as Dollar Dives

This was another typical sleepy summer day of trading.

Silver and gold continued tearing higher, with silver firmly planting its price flag over 23.

The US Dollar gave up the 95 handle, finishing on the DX Index around 94.92.

After the bell the big tickle was Tesla reporting its financial results.

Chipotle and Microsoft also chimed in.

But Tesla is a 'story stock deluxe.'

It is running on momentum now.  And has achieved a valuation bubble accepted only by pure cynics and true believers.

Expectations have become so overblown that the story of autonomous electric cars for everyone  has had to start morphing into some fantasy 'platform' for selling and servicing things other than cars and batteries.

Well, I would not get in front of this one, but its fall from these lofty heights will likely be fairly impressive.

I got a chuckle listening to the financial bobbleheads and spokesmodels talk about how it is risky to give working stiffs a little extra kick in their unemployment checks, because it might make them lazy, and discourage them from going to back to work.

How about putting in some real safeguards, like no bonuses for executives of financial companies and major corporations that are receiving bailouts?

Surely we don't want to encourage to keep taking reckless actions because there are no personal consequences for their extreme mispricing of risks and short term pursuit of quick profits.

But I don't think the same rules apply for them as they do for the rest of us.  And that speaks volumes about how the politicians view the people versus the elites.

Well, baseball season has started at last, and we have been enjoying watching it in the evenings.  Nice to have MLB.TV access.   Despite the canned audience noises its good to have it back.

Have a pleasant evening.

Stocks and Precious Metals Charts - Silver Bolts Higher - Hey Bop a ReBop

"You have lost your reason and taken the wrong path. You have taken lies for truth, and hideousness for beauty.  I marvel at you who exchange heaven for hell on earth.  I don't want to understand you.”

Anton Chekhov


“Thus did a handful of rapacious citizens come to control all that was worth controlling in America. Thus was the savage and stupid and entirely inappropriate and unnecessary and humorless American class system created. Honest, industrious, peaceful citizens were classed as bloodsuckers, if they asked to be paid a living wage.

And they saw that praise was reserved henceforth for those who devised means of getting paid enormously for committing crimes against which no laws had been passed. Thus the American dream turned belly up, turned green, bobbed to the scummy surface of cupidity unlimited, filled with gas, went bang in the noonday sun.”

Kurt Vonnegut, God Bless You, Mr. Rosewater


"We had come to the stage where for our people what was needed was a real democracy; and of all forms of tyranny the least attractive and the most vulgar is the tyranny of mere wealth, the tyranny of a plutocracy."

Theodore Roosevelt

Stocks took a good run higher, beginning in the overnight futures trade.

Happy visions of vaccines and more corporate-friendly stimulus had visions of easy money dancing in Wall Street's head.

But alas, the big sled dogs, the high cap tech, faltered once again.

There was a 'sector rotation' to the small caps as seen in the Russell 2000.

We see that M2 money supply is growing at a torrid 25% year-over-year pace.

The Dollar dumped.

Perhaps the rest of the world needs to read a weighty essay about Modern Monetary Theory.

And so the Fed continues to buy Treasuries, as if there was no tomorrow. 

Nice.

Of course we are doing this 'rescue' all wrong again, propping up the corporate 'job creators' and barely giving a crumb or two to the consumers.

But who controls the well spring of the money supply creation in the Federal Reserve?

Uh huh. The same crew that owns most of the stock market, and the economic noose of financialization.

 Smells like teen spirit. And a future rendezvous with destiny.

And there you have it.

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

Have a pleasant evening.

Stocks and Precious Metals Charts - Risk On! - With a Twist

"No matter how sophisticated our choices, how good we are at dominating the odds, randomness will have the last word.”

Nassim Nicholas Taleb


“Outrage is like a lot of other things that feel good but, over time, devour us from the inside out. Except it’s even more insidious than most vices because we don’t even consciously acknowledge that it’s a pleasure. We prefer to think of it as a disagreeable but fundamentally healthy reaction to negative stimuli, like pain or nausea, rather than admit that it’s a shameful kick we eagerly indulge again and again."

Tim Kreider, We Learn Nothing

Stocks were in rally mode today, the typical kind of narrow rally focused on the big name 'story stocks.'

Gold and silver were sailing along, with silver in particular taking hold of the 20 handle and hanging on to it with a firm grip.

Both gold and silver have broken out. I have highlighted the objective on the charts.

This is a highly unstable, self-referential equity market.

It is not a question of 'if' but 'when' it melts down, and what sets it off.

On a scale of 1 to 10, this is nuts and getting nuttier by the day.

And the band played on.

Have a pleasant evening.

Stocks and Precious Metals Charts - Lazy Summer Afternoon

“What do I fear? Myself? There’s none else by.
Richard loves Richard; that is, I and I.
Is there a murderer here? No. Yes, I am.
Then fly! What, from myself? Great reason why:
Lest I revenge. What, myself upon myself?
Alack, I love myself. Wherefore? For any good
That I myself have done unto myself?
O, no! Alas, I rather hate myself
For hateful deeds committed by myself.
I am a villain. Yet I lie. I am not.
Fool, of thyself speak well. Fool, do not flatter:
My conscience hath a thousand several tongues,
And every tongue brings in a several tale,
And every tale condemns me for a villain.
Perjury, perjury, in the highest degree;
Murder, stern murder, in the direst degree;
All several sins, all used in each degree,
Throng to the bar, crying all, “Guilty! guilty!”
I shall despair. There is no creature loves me,
And if I die no soul will pity me.
And wherefore should they, since that I myself
Find in myself no pity to myself?”

William Shakespeare, Richard III


“People are often unreasonable and self-centered. Forgive them anyway.
If you are kind, people may accuse you of ulterior motives. Be kind anyway.
If you are honest, people may cheat you. Be honest anyway.
If you find happiness, people may be jealous. Be happy anyway.
The good you do today may be forgotten tomorrow. Do good anyway.
Give the world the best you have and it may never be enough. Give your best anyway.
For you see, in the end, it is between you and God.
It was never between you and them anyway.”

Mother Teresa


"The dawn will come. Disappointment, sorrow, and despair are born at midnight, but morning follows...
Let no man pull you so low as to hate him.”

Martin Luther King, A Knock at Midnight

In the end, the only real tragedy is not to have been a saint.

Stocks managed to drift a bit higher on a very light volume, typical of a lazy mid-Summer day.

Gold and silver took their dip lower, for the sake of the option expiration boogie woogie, but then recovered all of it and put in a solid close on the day.

Uncle Buck dropped the 96 handle and closed lower on the day.

When we see the nuttiness around us, and the awful behaviour of others, we might well ask what can be done?

The answer is to start by changing ourselves. There is much there to be done.

And we bear the consequences for that.  And not for distraction of judging the sins of others.

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

Have a pleasant weekend.