Wave of Selling Activity at the London PM Gold Fix Still Occurring

Nice to see that 'the London fix' has been 'fixed.'

Not!

The problem was never just in London, and not just with their 'fix.'

The major source of the problem is much greater, and a the dark heart of it in the bucket shop markets about 3,460 miles to London's west.

This chart is from Nick Laird and his chart and data repository at sharelynx.com.

 

50 Tonnes of Gold Withdrawn from Shanghai Gold Exchange in Latest Week

There were about 50 tonnes of gold bullion taken out of the Shanghai Gold Exchange in the latest week.

That is roughly 1,606,000 ounces in one week.

I include the gold inventories at the Comex warehouses below for the purposes of comparison.  The 'registered' category is what is available for sale at current prices.

These charts below are from the data wrangler Nick Laird at sharelynx.com.

Gold Daily and Silver Weekly Charts - Option Expiry on Monday

There will be an option expiration on the Comex for the May Contract on Monday.

 

We will be rolling over from April to June next week for the front contract.

 

Gold and silver were hit today as money was somewhat desperately piling into equities.

 

I say desperately because while the Nasdaq set a new all time high, declines were leading advances, and volumes were light.  In other words, it was a selective rally in heavily weighted stocks that can move the indices, especially those that are big name tech heavy.

 

There is quite a bit of mispriced risk in the markets now. And we can certainly look no further than the Fed and the regulators when the time comes to thank someone for the bitter consequences.

 

There was new intraday commentary on neoliberalism in economics here.    It may help you to understand what is behind some of the odder policy choices and political actions being taken today.

 

There is quite a bit of big money momentum behind this neoliberal agenda.  The goal is to overturn all of the New Deal reforms and programs, and bring the world back to the late 19th century world of monopolies and robber barons.  And they are doing a good job of it.

 

They are partnering up with the so-called neo-conservatives, who were really the far left statists who became disenchanted with Stalinism and went clear around the socio-political wheel to statism of the far right.

 

What do they have in common?  They both worship power, and their religion is greed.

 

The world has been here many times before.   While the spirit of life is resilient, so is the dark impulse to try to make ourselves as gods over our fellows and the earth.

 

Have a pleasant weekend.

 

 

 

 

 

 

SP 500 and NDX Futures Daily Charts - A Sick Economy and a Frankenstein Stock Market

The durable orders number, ex-transportation which means aircraft, was very poor this morning marking seven months in a row of declines. It is the trend, not the headline number, that is most important.

Stocks were off to the races, with 'tech staples' leading the charge.

The Nasdaq set a new all time high.

The VIX is at its low for this year, an area of complacency we have not seen since the beginning of last December.

If you look closely at the composition of the market, you will find that in the major indices the declines were outpacing the advances.

What this means is that the index moved higher on selective buying in certain heavily weighted stocks.

All in all, this is a good time to take profits and pare back on stock holdings. Not necessarily go short unless you are very aggressive and a short term seasoned trader, but in anticipation that the market momentum wiseguys are expecting the Fed to bail them out further at these valuations.

Or the ECB and Bank of Japan for that matter. We are in one heck of a nasty little bubble here in financial paper.

You might miss another ten percent to the upside, but the risks here make my skin crawl unless something changes. A narrowing market on light volumes with a negative Advance-Decline number. Yikes!

Have a pleasant weekend.