SP 500 and NDX Futures Daily Charts - Skittish

I do not like the idea of holding equities here, although a big selloff is unlikely before the November midterm elections. They seem rather fully valued, and the risks inherent in this unreformed financial system and globally interconnected mélange of mispriced exogenous events do not seem equitable.

So, for example, we saw stocks unable to rally even with a big financialisation announced, with the splitting of Hewlett-Packard into two different companies, although the stock itself could rally.

But the algos have these markets 'in hand,' and the Fed continues to pump money into Wall Street. The problem is that Wall Street is reported using 95% of their profits for stock buybacks and payouts.

 

And so money continues to be scraped out of the real economy and aggregate demand to the one percent.

This will be a fairly light week for the economic calendar.

Have a pleasant evening.

Gold And Silver Divergence: Enter the Dragon

After beating Chuck Norris like a rented mule.

Most people who follow these things are aware of the remarkable expansion in open interest on the Comex in silver contracts during this price decline.

This is unusual because more often open interest follows prices, as metal bulls open contracts with buying or close them out with selling.

Gold is following the more conventional decline.

But on the other hand, we have silver inventories increasing remarkably in the 'transparent holdings' which Nick Laird, data wrangler, tracks for us.   Nick has some of the best collections of regularly maintained charts around.

And gold inventories have continued to be drawn down.

One might say that physical gold is disappearing, and silver is being overwhelmed by paper selling.  You could conclude other things of course.  And that is part of the problem with the opaque NY-London markets, so many of which have been revealed to be rigged.

I emailed my friend Dave last night and said, 'I think with this overnight plunge to 1183 the bottom is in, with a possible retest.'   Let's see if that holds.  It certainly is oversold with record short interest in gold.

One of the reasons it feels like a bottom, besides horrible sentiment,  is because the usual suspects and shills have been slithering out from under their rocks to spread their gloom, for their own books and for some of the funds as well I suspect.

China comes back from its holiday this week.  And they are not happy about alleged US interference in the Hong Kong demonstrations among other things.

As you may know one of the big rumours is that a deep pockets long is holding quite a few December silver contracts and refusing to fold them against downward price pressures.  The most frequently heard name is China.  There are a number of motives attributed to this.

Since the markets are opaque we can only guess.  I am keeping a close eye on the fundamentals, as I think the technical measures on the US markets are dodgy to say the least.  The Banksters have their fingerprints all over these markets, and there are too many odd things going on to make a reasonable person confident in their integrity.

Of course only about 1 out of 10 Americans bring a reasonable skepticism to these matters.  So for now the bullion Banks are having their way.  Not so with the rest of the world, however.

Do you feel a marked friction between the US and Russian/China and a few other nations?  Those I believe are the manifestations of the ongoing currency war, which is another name for the strain of a continued supremacy of the Imperial Dollar as the measure of value and primary basis of international exchange.

The times they are a-changing.

 

Gold Daily and Silver Weekly Charts

Gold and silver were hit hard today in honor of the Non-Farm Payrolls Report.

China is on holiday for National Week.

Nothing of particular interest happened in the Comex or its warehouses yesterday.

The sheer arrogance of the NY Fed still has me taken aback. They really do not see what is coming.

Today is one of those absolutely charming 'Indian Summer' days in October that are far too nice to spend much time listening to 'financial journalists' spinning puerile tales about the economy in the style of The View.

So I am out of here.

The markets will always be there.  Well perhaps not all of them.  The Comex seems to have diminishing value and a shorter half-life than some.

Have a pleasant weekend.

SP 500 and NDX Futures Daily Charts - Big Bounce Off Support

Stocks in the US came off support with a sharp rally based on 'better than expected' headline job additions number from the Non-Farm Payrolls Report.

The actual number of jobs estimated to have been added exceeded expectations at 248,000 vs. a consensus of 210,000.

The jobs that were added were weak, low paid jobs being taken primarily by older people in the 55+ category service industry.

Wage growth fell short at "zero" as in stagnant, and losing ground in real terms.

There is no recovery.

 

 The financial sector continues to skim the life off the American economy.

Have a pleasant weekend.

 

Bill Moyers with Bill Black: Chasing Mice While Lions Roam the Campsite

"The Clinton, Bush and Obama administrations all could have prevented the financial meltdown...We have created the incentive structures that are going to produce a much larger disaster.”

William K. Black

The big thieves hang the little ones.

Unrestrained Capitalism and The Will To Power and Possession

Serve whom you will, but know whom you serve.

"Our human family is presently experiencing something of a turning point in its own history, if we consider the advances made in various areas. We can only praise the positive achievements which contribute to the authentic welfare of mankind, in fields such as those of health, education and communications.

At the same time, we must also acknowledge that the majority of the men and women of our time continue to live daily in situations of insecurity, with dire consequences.

Certain pathologies are increasing, with their psychological consequences; fear and desperation grip the hearts of many people, even in the so-called rich countries; the joy of life is diminishing; indecency and violence are on the rise; poverty is becoming more and more evident. People have to struggle to live and, frequently, to live in an undignified way.

One cause of this situation, in my opinion, is in the our relationship with money, and our acceptance of its power over ourselves and our society. Consequently the financial crisis which we are experiencing makes us forget that its ultimate origin is to be found in a profound human crisis. In the denial of the primacy of human beings! We have created new idols. The worship of the golden calf of old has found a new and heartless image in the cult of money and the dictatorship of an economy which is faceless and lacking any truly humane goal.

The worldwide financial and economic crisis seems to highlight their distortions and above all the gravely deficient human perspective, which reduces man to one of his needs alone, namely, consumption. Worse yet, human beings themselves are nowadays considered as consumer goods which can be used and thrown away.

We have started a throw-away culture. This tendency is seen on the level of individuals and whole societies; and it is being promoted! In circumstances like these, solidarity, which is the treasure of the poor, is often considered counterproductive, opposed to the logic of finance and the economy.

While the income of a minority is increasing exponentially, that of the majority is crumbling. This imbalance results from ideologies which uphold the absolute autonomy of markets and financial speculation, and thus deny the right of control to States, which are themselves charged with providing for the common good.

A new, invisible and at times virtual, tyranny is established, one which unilaterally and irremediably imposes its own laws and rules. Moreover, indebtedness and credit distance countries from their real economy and citizens from their real buying power. Added to this, as if it were needed, is widespread corruption and selfish fiscal evasion which have taken on worldwide dimensions.

The will to power and of possession has become limitless."

Francis I, 16 May 2013