Spiritual pride leads to a lingering spiritual death. It turns the living being into a tomb, bright and polished on the outside, proudly ornamented with scrupulous attention to detail, and ostentatious adherence to the letter of the law — but inside full of corruption, and festering foulness. They love the rituals and the worldly forms of religion, but want nothing to do with mercy and love. It is a sickening romance with the self, unto death.
Jesse, Essere Umano, 20 August 2017
Close but no cigar even from a look at the simple daily charts with the retracements.
From the main chart in the 'Babson style' not shown, gold must take out and hold 1850.
On the weekly chart not shown, silver must take out and hold 28 and then move to take out 30 to truly break higher.
Here is a shot of the SP 500 chart in its original size.
You can more easily see the bounce off the 50% fibonacci retracement.
I have mixed feelings about that 'gap' on the chart.
The futures are a more volatile animal than the cash market.
These are the charts as I use them each day I also have the ability to 'zoom in' on even the smallest sections.
I take no money for this. I don't need it and enjoy independence.
It is just sharing of ideas.
I am just showing the charts as I use them for my own investment/trading, with some additional comments.
I have been using this 'Babson' charting method since 2002.
It's funny but I had forgotten that early on in this blog I used to title the posts 'Charts in the Babson style.'
He did not provide a written description of his method.
I made it my own, with a foundation of classic charting techniques, from some general comments about the principles he followed.
He did provide a list of trading commandments that are worth considering.
But I cannot stress enough, that it is not the charts that make the trade, but the trader.
So be careful what kinds of nonsense you put in your trading mind.
See you after the close.
Stocks bounced back up today as the PPI came in reassuringly milder than the steaming hot CPI.
Gold and silver gained back some ground as well.
The Dollar chopped sideways.
I marked the fibonacci retracement levels on the charts.
Have a pleasant evening.
"The [unanswered] questions include why does silver have the largest concentrated short position in terms of real-world production of any other commodity? Next is why have the big shorts always been allowed to add as many new short positions as needed to cap the price and then buy back those shorts on lower prices? This is not allowed anywhere but on the COMEX. Finally, how could the 4 big shorts being the sole short sellers into the price rally into Feb 1, not show that these traders capped the rally? All while the physical silver market had never been tighter. I believe these are the only legitimate questions that matter."
Ted Butler, May 12, 2021, The Questions No One Has Legitimately Answered
“It is difficult to get a man to understand something, when his salary depends on his not understanding it.”
Upton Sinclair
The CPI came in much higher than expected this morning, causing the markets to sell off briskly on concerns about inflation and the Fed posture towards interest rates.
The Dollar rallied on the expectations of higher interest rates.
Gold and silver retreated.
Stocks sold off fairly sharply and steadily again, going out near the lows.
As a reminder there is still an open gap around 4000 level, lower than the close of the SP 500 today.
PPI tomorrow will give us a look at the wholesale inflation picture.
Personally I do think this is a sign of an uneven recovery from the Covid shutdown.
The results of the CPI were heavily skewed by just a couple of factors that are not likely to repeat over time.
But fear sells clicks.
And facilitate the wash cycle of a valuation wash and rinse adjustment.
Have a pleasant evening.
Here is a blast from the past. I remember almost every one. Some I have not thought about in years.
We only had three black and white channels to watch back then. So choices were limited.
