Stocks and Precious Metals Charts - Slowly We Turned

“Realize that narcissists have an addiction disorder.  They are strongly addicted to feeling significant.  Like any addict they will do whatever it takes to get this feeling often.  That is why they are manipulative and fakers.  They promise change, but can't deliver if it interferes with their addiction.”

Shannon L. Alder 

 

"This is the contempt in which they hold the majority of American people and the political process: the common people are easily led fools, and everyone else who is smart enough to know better has their price.  And they would beggar every middle class voter in the US before they will voluntarily give up one dime of their ill gotten gains." 

Simon Johnson, The Quiet Coup, May 2009

 

Stocks were in rally mode today, taking back the losses incurred yesterday when the Covid stimulus talks were cancelled. 

Gold and silver gained a bit. 

 The Dollar was slightly lower. 

Let's see what the rest of this week brings. 

There will be a debate between the two VP candidates tonight. 

National Day 'Golden Week' in China is now over, so perhaps we will see a pickup in trading activity from that portion of Asia.

Have a pleasant evening. 

 

Stocks and Precious Metals Charts - The Irresponsibles

"I see dead people.  Walking around like regular people.  They don't see each other.  They only see what they want to see.  They don't know that they're dead."

Cole Sear: The Sixth Sense

 

"And they [historians] will ask the question, Why did we, scholars and writers in America, in this time, we who had been warned of our danger not only by explicit threats but by explicit action, why did we not fight this danger while the weapons we used best - the weapons of ideas and words - could still be used against it?"

Archibald Macleish, The Irresponsibles, 1940

Stocks were making another attempt to rally today, and were making some headway. 

But the DC Drama Queen decided to unilaterally decided to cancel the Covid19 relief/stimulus discussions.   And his sidekick Mitch decided to put the Senate into recess.  Until he needs to vote on the Supreme Court nominee of course.

This was after Jay Powell's warning that a failure to address this on the fiscal side would place the economy in a 'tragic scenario.' 

Gold and silver slumped along with stocks, the Dollar rose, and the VIX ran up again to overhead resistance. 

And tomorrow is another day. 

Have a please evening. 

 

Stocks and Precious Metals Charts - An Ocean of Mercy

 

“Love endures everything, love is stronger than death, love fears nothing.   Help me, Lord, that my eyes may see all with mercy, so that I may never suspect or judge from appearances, but look deeper for what is good and beautiful in others' souls, and then come to their aid.  Truth wears a crown of thorns.   Let all my nothingness be drowned in the ocean of your mercy.”

Maria Faustyna Kowalska

 

"Blessed are the merciful, for they will obtain mercy."

Matthew 5:7

 

Stocks were in rally mode today, with the major indices going out on the highs. 

The main suspects was Trump's return to DC after his weekend stint in the hospital, but more likely the better than expected PMI data.

And perhaps even more significant was the movement in the long end of the yield curve, which signals to some that the Fed's great experience for growth through inflation is succeeding. 

The VIX rose today, along with gold and silver, so this was not so much a clear 'risk on' event. 

And the Dollar slumped a bit. 

So taken on in overall context, this may have been a flash of optimism about the economy. 

Let's see how well the flash carries through into the week. 

Gold and silver have not yet broken out. 

 Have a pleasant evening.

Stocks and Precious Metals Charts - Is Gold In a Falling Wedge - Weakness in The RecoveryTM

"Jim, lad, there be consequences an' then there be consequences.  Devil take 'em all, says I, and pass aft the rum." 

Robert Louis Stevenson, Treasure Island

"Foolishness has a knack of getting its way; as we should see if we were not always so much wrapped up in ourselves.  In this respect our townsfolk were like everybody else, wrapped up in themselves; they did not believe in plagues." 

Albert Camus, The Plague

"Distrustful Sense with modest Caution speaks;  It still looks home, and short Excursions makes;   But rattling Nonsense in full Vollies breaks;   For Fools rush in where Angels fear to tread."

Alexander Pope, An Essay on Criticism 

"Nemesis, the goddess of retribution and vengeance, the punisher of pride and hubris, waits impatiently for her meeting with us." 

Chalmers Johnson 

Stocks flopped hard this morning, on the news and Trump et al. have tested positive for Covid-19. 

This served to distract from the disappointing miss in the Non-Farm Payrolls report. 

 Non-tech managed to take a little of those losses back, but still finished in the red. 

I don't think it is reasonable to expect frankness in the disclosures about the progress of the President's health, but I do wish him and everyone else who struggles with illness such as this well. 

Gold and silver shook off the traditional hit for the Non-Farm Payrolls report. 

Still, they need to surmount the overhead resistance before one can say that they are back on the bull market track. 

Let's see what next week brings. 

As an afterthought, I have added a chart formation I have been thinking about for gold.

It is a falling wedge.

If it is so, and it breaks up and out, the move could be rather impressive.

Have a pleasant weekend.