Stocks and Precious Metals Charts - Risk Off

 

"Monetary and regulatory policy encourage asset bubbles to proliferate.  Hot money seeks out the conscious mispricing of risk.  Capital, in the form of both money and personal talent, increasingly flows into malinvestment and the gaming of markets.

The productive economy languishes, left wanting for the lack of creative resources and attention.  The bubble rises to unsustainable valuations— and fails, and a nation's capital is consumed." 

Jesse 5 August 2019, The Men Who Sold the World

 

"Over the last thirty years, the United States has been taken over by an amoral financial oligarchy, and the American dream of opportunity, education, and upward mobility is now largely confined to the top few percent of the population. 

Federal policy is increasingly dictated by the wealthy, by the financial sector, and by powerful (though sometimes badly mismanaged) industries such as telecommunications, health care, automobiles, and energy. These policies are implemented and praised by these groups’ willing servants, namely the increasingly bought-and-paid-for leadership of America’s political parties, academia, and lobbying industry. 

If allowed to continue, this process will turn the United States into a declining, unfair society with an impoverished, angry, uneducated population under the control of a small, ultrawealthy elite. Such a society would be not only immoral but also eventually unstable, dangerously ripe for religious and political extremism." 

Charles Ferguson, Predator Nation

Stocks moved sharply lower after some rose to new all time highs in the morning. 

Declines were led by the big cap tech bubble. 

The crypto bubble, or ponzi scheme, deflated a bit. 

Gold was up slightly as silver edged lower. 

The Dollar was unchanged. 

The VIX was higher. 

In a liquidation event everything declines.   The object at that point is survival.

I am taking a little break, and my trading account has been sitting in cash since Friday. 

My long term position are just as they have been, for years. 

The commodity of greatest concern to these financial markets is the supply of greater fools.

Let's see what happens. 

Depending on how things go I may trot out a few charts showing how various assets perform in deep corrections. 

How America Became the Money-Laundering Capital of the World.

Have a pleasant evening. 

 

Stocks and Precious Metals Charts - The Leader of the Pack

 

"Look out! Look out!  Look out! Look out! 
I felt so helpless, what could I do?
Remembering all the things we'd been through
In school they all stop and stare
I can't hide the tears, but I don't care
I'll never forget him— the leader of the pack."

Barry, Greenwich, Morton, Leader of the Pack

 

"The markets traded as though they are anticipating a weaker than expected number, which will be dovish and friendly for maintaining lower interest rates."

Jesse, 6 May 2021 

 

Bingo.

The Non-Farm Payrolls number posted a huge miss, with downward revisions in the prior months.

All the better to justify stimulus for the economy, my dear.

And so the markets took off higher.

And forgotten was the cautionary statement from the Fed at the close of trading yesterday.

Hey, but we warned them, right?

Gold finished solidly, and silver held much of its gains.

The Dollar headed lower on expectations of more easing for longer, aka low interest rates.

The SP soared to a new high, while the tech heavy NDX gave back a chunk of its early gains.

Let's see what the new week may brink with the inflation numbers.

Have a pleasant weekend.

 

Stocks and Precious Metals Charts - Fed: Asset Prices Vulnerable To Significant Declines

 

"Rising asset prices are posing increasing threats to the financial system, the Federal Reserve warned in a report Thursday.  Fed Governor Lael Brainard said the situation bears watching and points up the importance of making sure the system has proper safeguards. 

'Asset prices may be vulnerable to significant declines should risk appetite fall,' the central bank said."

Jeff Cox, CNBC, Fed Cautions on Stock Price Vulnerability

 

Gold and silver had big moves higher today, taking on key resistance at breakout levels. 

The major stock indices went out on the highs.

The Dollar declined.

The VIX dropped to recent lows.

There will be a Non-Farm Payrolls report tomorrow.

The markets traded as though they are anticipating a weaker than expected number, which will be dovish and friendly for maintaining lower interest rates.

At the end of trading there was a news flash that says that the Fed warns that asset valuations 'may be vulnerable' if risk appetites should decline.

Let's see how the markets digest that eye-opening, ass-covering admission by the bubble-meisters.

Have a pleasant evening.

Stocks and Precious Metals Charts - I Remember Mama

 

“When the child must be weaned, the mother too is not without sorrow at the thought that she and the child are separated more and more, that the child which first lay under her heart and later reposed upon her breast will be so near to her no more.” 

Søren Kierkegaard 

 

Janet Yellen walked back some of her interest rate related verbiage that had roiled markets earlier this week.

It just goes to show how skittish the markets are at these valuations in the context of our current circumstances and uncertainty.

Gold was up a bit and silver was nominally unchanged.

The Dollar chopped sideways.

The SP 500 moved up a little after giving up most of the day's gains.

Big cap techs drifted lower.

Traders seem to be holding their breath, waiting for the Non-Farm Payrolls report on Friday.

This is a Fed subsidy dependent market, waiting to see if an organic recovery can take hold.

And thereby it can taper off its support and wean the market from its artificial dependency on expansive monetary policy.

Have a pleasant evening.