Gold Daily and Silver Weekly Charts - Rangebound for now

We had a few paper claims traded for gold and silver in the delivery reports.

They were moving bullion around the plate in the warehouses.

Gold and silver took a hit around 10 AM New York time and never really recovered.

There is a minor option expiration next Monday.

The next move will show us the trend, or trend change.

Have a pleasant evening.

 

 

 

 

SP 500 and NDX Futures Daily Charts - Bubble-nometry

After the bell, Facebook was the big news tickle on results, but the stock was flat after hours.

Qualcomm hit the numbers but lowered its forecast, and AT&T beat EPS by a penny but flat revenues missed.

Las Vegas Sands turned in poor earnings results and was selling off after hours. Wait until the sun shines, Shelly.

The tape had some oomph and then faded into the afternoon with the after hours trade sluggish.

We might be close to the end of the wash cycle, and might start hearing the whirring of a rinse.

Have a pleasant evening.

Gold Daily and Silver Weekly Charts - Currency Wars

Early this morning I put out an update on the state of the currency war.  I suggest that you take a looks at this short piece which I added to the Russia gold reserve update here.

 

The metals were the same old, same old. They were hit twice in the morning, in London and then New York, and rallied into the close to gain back most of what had been lost yesterday.

The metals are largely moving sideways here, and the wiseguys are trying to shake some metal out of loose hands.

It worked a bit in gold. If you look at the delivery report showing yesterday's action, you can see that a customer of JPM let some bullion go, and JPM and Nova Scotia picked it up for their house accounts.

 

I also show the warehouses for both gold and silver below.  

 

While the actual movement of the metals is not unique compared to the recent status quo, I thought it was impressive to see the amount of physical silver being held by JPM.   While we do not know if those are for their accounts or customers, it is still noticeable.

 

As for gold, most of the Comex gold is being held by HSBC and Scotia Mocatta, although there is also a 'kilo gold only' report that I normally do not show that is dominated by Brinks.  I do not show it because the report has no registered bullion, merely kilo storage at least since they have been issuing it as a new report.

 

Larry Fink, the head fink at BlackRock, says that the best stores of wealth these days are in NY, London and Vancouver real estate, and contemporary art, rather than in gold.

 

What an obtuse observation.   NYC, London, and Vancouver real estate are in an obvious bubble, and as for contemporary art, art in general has been a good hedge against inflation in general, but is notoriously illiquid, and subject to great variances in quality and appreciation.  And art is also in a bit of a bubble.

 

So what did old Larry really say?  That there are a couple of bubbles here, likely fueled by low interest rate hot money, and it is better to pile in there at a likely top, rather than buy gold which is bottoming after a three year bear market, and is one of the more undervalued of the traditional hedges against uncertainty and risk.

 

Right on Larry.  Thank you for talking your book.  Don't let the door hit you on the way out.

 

If there wasn't a gold pool still operating, I would say that the bottom is probably in when you start hearing rubbish like this.

 

Have a pleasant evening.

 

 

 

 

 

SP 500 and NDX Futures Daily Charts - Shaky Times In Croneyland

Stocks made an early move and then gave most of it up into the afternoon.

Volumes to the upside remain light, and so are vulnerable to profit taking. My sense is that they are primarily gimmick driven.

After the bell Chipotle beat its earnings and revenue, but missed on comparable store sales. Further, they see the rest of the year growth in the single digits. While they may sound good for most stocks, for a company with Chipotle's multiples that was not enough, and the stock was selling off after hours.

Yahoo just missed everything, and the business continues to wallow, although they are doing well in the their investments like Alibaba.

 

YUM says they were hurt by the strong dollar.  They get quite a bit of their sales from China.  Their results missed expectations pretty much across the board.   However, the stock traded higher after hours by affirming its full year forecast.   Until they don't.

I think the stock market is vulnerable to a sell-off because its composition seems as substantial as meringue.

However, buying programs meet most selling and the Fed seems invested in keeping paper assets inflated for their constituency, so unless something happens to really provoke some selling volumes I think the market can keep drifting.

This is a set up for a crash IF the right trigger presents itself. And the responsibility for this is with the Fed and the other regulators who permit such a dangerous market, driven by spoof trading and hot money, to become the new normal.

 

The problem in trying to play it is that many short positions are time sensitive, and if volumes remain light one falling into the price gimmicking machine of the algos.  It is one thing to be right, and very much another thing to have the right timing.  This is why I prefer riding trends rather than the wash and rinse cycles of the wiseguys.

Have a pleasant evening.