Gold Daily and Silver Weekly Charts - Coiling Like a Snake - Whip It Good

When a problem comes along

You must whip it

When something's goin' wrong

You must whip it

Devo - Whip It

The metals continue coiling as gold is held around the 1200 level and silver between 16 and 17.

The 'delivery action' is in silver this month, and the relative scarcity of deliverable warehouse metal at this price is in gold.

I wonder how long the Fed and their cronies can hold the metals down, while they desperately whip the flagging economy into recovery.

 

The urban cowboys are the Wall St Bankers, and the red hatted weirdos are the Fed.

 

Whip it good.

Have a pleasant evening.

 

 

 

 

 

 

SP 500 and NDX Futures Daily Charts - 99 Luftballons

Another intraday 'stick save' for the ever levitating US equity markets.

And the hits just keep on coming. Until they don't.

Have a pleasant evening.

 

 

 

Gold Daily and Silver Weekly Charts - Deliverable Gold in the Comex Falls To Record Low

This is an inactive month for gold on the Comex, and the delivery reports, such as deliveries are at The Bucket Shop which is merely an exchange of claim checks, reflect this.

So I was a little surprised to see that in the latest warehouses report the 'registered' or deliverable gold, at these price levels, has fallen to record low levels of 372,235 ounces, or about 11.6 tonnes.

To put that into a more global perspective, the Shanghai exchange alone is actually physically delivering, or withdrawing in excess of 30 tonnes per week.

This is not so much an issue now since this is an 'inactive month' at The Bucket Shop, meaning that the exchange of claim checks takes a back seat to the purer exercise of wagering to an internal set of rules, scheming and bluffing amongst the big swinging dicks of Manhattan, in the manner Liar's Poker, and the long tradition of scheissers and assorted flim-flam men.

 

Can you not see this in our culture?  We admire and hold up the most skillful liars as role models.  See how he can deftly answer any question in whichever way he wills,  without batting an eye or touching a fact?   What a great leader for our time.

 

But as our self-absorbed nincompoops in business and government so often forget, the rest of the world is active, and very open for business.   And they are not necessarily signing on to the one world government of the multinational corporations just yet.

 

To be clear, I am not saying that the Comex is on the verge of default, or anything as dramatic as that, although there are plenty who will make that claim, and on just about every occasion on which they have a podium to be heard.

 

Rather, I am making the point that our models of price discovery and capital allocation are broken, and badly, in quite a few markets beyond the precious metals.   It is like we are running our economy on demo mode, some video game in which wiseguys play to cheat the unsuspecting and the productive. 

 

And this is having and will continue to have increasingly disruptive consequences in the real domestic and the world economy.  And at some point the world may say 'enough.'  And then change may come.

 

Have a pleasant evening.

 

 

 

SP 500 and NDX Futures Daily Charts - United States of Amnesia

“We are the United States of Amnesia, we learn nothing because we remember nothing.”

Gore Vidal

Stocks backed off their exuberant rally high from last Friday after that 'goldilocks' job number.

The 'global bond rout' has investors nervous, and well they might be. 

We are led by narcissists and sociopaths, in a most unwholesome partnership between the public and private sector. 

 

And the most feral, counterproductive response of self-proclaimed 'reformers' is to eliminate government, to nullify it, so that in their very deluded and romantic imaginations the monied interests can refrain from acting as lawbreakers, since at their core these most selfish and cunning of predators and sociopaths are really yearning to be, think, and act like angels.

 

And what will we do, having deregulated our markets, freed them from restraint, and eliminated the laws so that none may be lawbreakers.  What will we do when the very heart of darkness has a freer reign to blow the winds of plunder and power over the lands, with nothing to provide us a foothold or an anchor, the laws which are the pillars of justice having been all overturned? 

Have a pleasant evening.

 

 

 

 

Gold Daily and Silver Weekly Charts - And Quiet Flows the Con

"When swept out of its normal channel, life scatters into innumerable streams. It is difficult to foresee which it will take in its treacherous and winding course.

Where to-day it flows in shallows, like a rivulet over sandbanks, so shallow that the shoals are visible, to-morrow it will flow richly and fully."

Mikhail Aleksandrovich Sholokhov, And Quiet Flows the Don

 

The predator class got their 'goldilocks' jobs report today, with many part time and marginal jobs for average people with little to no wage growth.

 

There were a couple of interesting developments in gold and silver at the Bucket shop.

 

Thanks to a very large withdrawal of 137,041 ounces of gold from the Brink's warehouse, the amount of registered (deliverable) gold in the Comex warehouses dropped to about 407,402 ounces of gold bullion. 

 

That is a low for registered gold we have not seen in some time.  Where that gold might end up is not something we can yet know.  It may just be an inter-warehouse transfer.  Or it might be headed East.  Perhaps we will know next week when the next report comes out. 

 

It does not matter much for May since it is an inactive month for gold, but it was notable nonetheless.

 

The other interesting thing is the silver chart below showing the technicals with the moving averages.  Silver is coiled like a tight spring in what looks like an ascending triangle.   

 

The US macroeconomic news calendar next week is a bit light, with emphasis probably coming from Retail Sales and ex-im prices on Wednesday and the PPI on Thursday. 

 

Otherwise it will be corporate earnings and geopoliticals again, with the situation with Greece slowly ripening on the vine.

 

I found the Tory victory in Britain to be quite interesting.  I wonder if Cameron will be emboldened to go even further with his party's destructive economic prescriptions.

I now have a whole unit of silver which I quietly acquired over the course of the week.

 

Have a pleasant weekend.

 

 

 

 

 

 

SP 500 and NDX Futures Daily Charts - Goldilocks Today, But Guess Who's Coming To Dinner

"Then Peter began to speak to them: ‘I truly understand that God shows no partiality, but in every nation anyone who fears Him and does what is right is acceptable to Him.'"

Acts 10:34-35

 

“The fine thing about pacts with the devil is that when you sign them you are well aware of their conditions. Otherwise, why would you be recompensed with hell?”

Umberto Eco, The Name of the Rose

Wall Street got the Non-Farm Payrolls number they wanted today.  And from the UK election results as well.

The report came in-line on this month's jobs, with a lot of help from the imaginary jobs cooked up by the BLS Birth-Death model, and there was less wage growth than expected, almost none.

Not to notice that they took the prior months number and cut it about 40%, scraping those jobs forward.  As regular readers know they do this quite a bit.

Given the sloppy numbers on inventory build we saw yesterday, it looks like 1Q might turn out to be a 'kitchen sink' quarter where they shove a lot of the bad news on jobs and GDP, and manage perceptions going forward since few in America ever seem to bother with history, even the history of three months ago.

This is what the financiers like. Lots of underpaid servants, bartenders, busboys, and on-demand workers drones that know their places.

Have a pleasant evening.