Gold Daily and Silver Weekly Charts - The Reivers

"And so we were three, three reivers high-tailing it for Memphis. Oh, 'reivers'. That's an old-fashioned word from my childhood. In plain English, I'm afraid it meant 'thieves'."

William Faulkner, The Reivers

Gold and silver caught a bit of a bid today, moving higher with stocks.

There was no movement in or out of the Comex warehouse yesterday, but some reclassifications of bullion as the gamblers continue to arrange their hands before the river card is thrown.

Have a pleasant evening.

SP 500 and NDX Futures Daily Charts - Ghosts of Bubbles Past

The spokesmodels on financial TV were thrusting their pom-poms this morning over the Facebook acquisition of 'WhatsApp' for $19 billion dollars.  This reminds me of techbubble-nomics.  Facebook is paying with an inflated currency for a big chunk of it, eg. their stock. 

And the Markit PMI came in high side, and so stocks were moving higher.

Did the analysts you were watching even mention the horrendous miss on the Philly Fed in the afternoon?  Must have been a snow day. Unemployment claims remain stubbornly high. 

I have outlined the key resistance and support levels on the SP 500 chart below. 

There was intraday commentary about the rising stock market and the Fed's rising Balance Sheet here.

Have a pleasant evening.

The Recovery™ - Bubble Back To the Bar For the Hair of the Dog That Bit You

"Double, double toil and trouble,
Fire burn and cauldron bubble.

Cool it with a baboon’s blood,
Then the charm is firm and good...

By the pricking of my thumbs,
Something wicked this way comes."

William Shakespeare, Macbeth, Act 4 Sc. 1

And why would we expect anything different, given the lack of serious reform and the careful targeting of the monetary expansion into the hands of the same old TBTF financial firms that have been distorting markets and misallocating capital for their own advantage since the repeal of Glass-Steagall?

The best way to cure the damage from a widespread, real economic collapse in the aftermath of a financial asset bubble is surely a continuation of the failed policies of the past, and yet another asset bubble targeting the most wealthy in the hope that something will trickle down to the rest.

Gold Daily and Silver Weekly Charts

There was no movement in or out of the Comex gold warehouses yesterday. At some point they must show the removal of any bullion taken by the February longs which have stood for delivery and decided to hold something more substantial than a claim check.

Gold and silver were short term overbought yesterday, and so a pullback is not all that surprising. It was interesting to see the precious metals moving with stocks today, as gold at least had been working as a counterplay flight to safety.

The 200 DMA for gold is around 1309, and so we would like to see this level hold on this retest and retrenchment.

Have a pleasant evening.