Gold Daily and Silver Weekly Charts - Madness, Ending Badly

"Men, it has been well said, think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, and one by one...

In February 1720 an edict was published, which, instead of restoring the credit of the paper, as was intended, destroyed it irrecoverably, and drove the country to the very brink of revolution...”

Charles MacKay, Extraordinary Popular Delusions and The Madness of Crowds

Self-awareness, empathy, and foresight are not, unfortunately, high in the ordered skill set of narcissists.

If Europe had any decency, leadership, and moral courage they would take the US financial system's car keys, sit them down in the kitchen, pour black coffee down their throats until they sober up, and then arrange for an extended intervention.

And they need to do it because the American people themselves have fallen into a slumber of indifference and denial about what is being done in their name, and how the world sees their elite.

Have a pleasant weekend.

SP 500 and NDX Futures Daily Charts - Burning Down the House

"Money, again, has often been a cause of the delusion of the multitudes. Sober nations have all at once become desperate gamblers, and risked almost their existence upon the turn of a piece of paper."

Charles Mackay

One in ten bridges in the US are in critical need of repairs.

This disparity and dichotomy between the virtual world of financial control frauds and the real economy of people and things is going to become more and more interesting.

One Elon Musk is worth five hundred Dimon's and Blankfein's. And as for most politicians I cannot even provide an estimate, because it is not possible to divide by zero.

Have a pleasant evening.

Gold Daily and Silver Weekly Charts - Option Expiration Hi-Jinks - Jan Skoyles On Gold

I see in the news where the CME is planning to offer a kilogram gold futures contract in Asia in order to provide a 'pricing reference' for that continent.   There goes the neighborhood. lol.  I thought these were global markets already.

The smash and grab in the metals markets resulted in a fairly impressive price range, especially in silver.  See the intraday commentary on the metals action on a Comex Option Expiration here.

Let's see where they go with this next.

Meet the Banking Caucus, Wall Street's 'Secret Weapon' in Washington.

And US Exported a Record Amount of Gold To Hong Kong In January.

Have a pleasant evening.

SP 500 and NDX Futures Daily Charts - Pause For Earnings

Stocks did quite the swing intraday, but managed to finish close enough to unchanged.

I think we might still have a little more upside in this wash cycle unless something in the real world happens.

Have a pleasant evening.

A Comex Options Expiration 'With a Twist' - Where the Elite Meet to Cheat

"Tomorrow is an option expiration for the May precious metal contracts on the Comex. As May is not an active month, and the greatest contract activity is already moved to June, we may see an expiration with a twist."

When we were kids, we used to join hands in a line, and then swing hard around a pivot and play 'crack the whip' outside.  Once we got going the people on the end of the line went flying.

If you look at the distribution of calls and puts in silver in particular the 'price discovery' this morning makes some sense.  They were discovering what it would take to shake out the calls and puts for losses before they settled the price where it returned the greatest profit.

Oh no, you obviously do not understand the intricate processes of the market,  say Shill & Troll. This is not cheating. This is hedging. Look at the Dollar and the cross markets. And besides, there has always been cheating so this is nothing new. And you can't stop it, they will always find a way. This is just business. No one made you buy those options.

What we saw this morning is a classic shake-out fake-out.  These guys make carnies look sophisticated.

If it were not for manipulation and a foolhardy few, there might be no interest left for the Comex.

Gold Daily and Silver Weekly Charts - El Camino Real

“All that is gold does not glitter,
Not all those who wander are lost;
The old that is strong does not wither,
Deep roots are not reached by the frost.

From the ashes a fire shall be woken,
A light from the shadows shall spring;
Renewed shall be blade that was broken,
The crownless again shall be king.”

J.R.R. Tolkien, The Fellowship of the Ring

Gold and silver continued to be capped just below 1300 and 20 respectively.

Tomorrow is an option expiration for the May precious metal contracts on the Comex.  As May is not an active month, and the greatest contract activity is already moved to June, we may see an expiration with a twist.

There was no movement in the Comex gold warehouses yesterday.

An additional 51 contracts for April gold stood for delivery, bringing the monthly total to 481,400 ounces.  There has been little visible movement of gold as a result of those warrants changing hands, at least so far.

Someone asked me today how it was that the prices could be 'capped' so effectively given the continuing pressure on physical supply by buyers from Asia.

The paper markets are where the price is set, and they have only tenuous connections to fundamentals like supply and demand for real products, especially because they are oriented to the short term and their own internal systems.

In a genuine global market, Chinese firms would be taking large positions on the Comex, and then standing for and taking delivery of bullion products from there.  And miners would be taking their products there for price discovery.

That is not what is happening in New York these days.   The London and New York markets are dominated by a relatively few but very powerful financial firms, and some very large speculators. 

At some point the paper and physical will have to reacquaint themselves and converge, and I suspect that will be a notable reunion indeed.

Have a pleasant evening.

 

SP 500 and NDX Futures Daily Charts - Bonfire of the Inanities

"It is to be regretted that the rich and powerful too often bend the acts of government to their selfish purposes...

In the full enjoyment of the gifts of Heaven and the fruits of superior industry, economy, and virtue, every man is equally entitled to protection by law; but when the laws undertake to add to these natural and just advantages artificial distinctions, to grant titles, gratuities, and exclusive privileges, to make the rich richer and the potent more powerful, the humble members of society — the farmers, mechanics, and laborers — who have neither the time nor the means of securing like favors to themselves, have a right to complain of the injustice of their government."

Andrew Jackson, Veto of the Second Bank of the United States

AAPL is the big tickle after hours.   That modern Leviathan is increasing its stock buyback program to $90 billion, is raising their dividend to 3.90, and is declaring a 7 for 1 stock split.  As they are saying on Bloomberg, now 'mom and pop' will be able to buy the stock. Huzzah!  Let's party like it is 1999, and let the fat lady start to at least begin to warm up if not actually start to sing.

Meine Damen und Herren, Mesdames et Messieurs Ladies and Gentlemen,  I am afraid that 'mom and pop' are living from hand to mouth, paycheck to paycheck, and can barely afford to buy food, shelter, gasoline, and basic health services.  It is the wealthy few that are acquiring assets with their Fed subsidized paper.  When you see the common people coming, it will not be with stock market orders in their hands. 
 
Here is another joke:

Everyman: Knock knock.

Benanke: Who's there?

Everyman: A living wage, the middle class, and human decency.

Bernanke: Who? What? You're not in our rolodex or our model.

And the real joke is that the Fed has had 'the man in the Street' foremost in mind when they bail out and 'regulate' the Banks.

In twenty years the Federal Reserve, under Greenspan and Bernanke, with their friends and servants in Washington and abroad, have managed to destroy one of the great icons of modern Western civilization, that was forged with sweat and blood in two world wars and the Great Depression: the US middle class.

Have a pleasant evening.

The US financial system appears to have a global image problem.