Gold Daily and Silver Weekly Charts - Unfortunately Predictable Absurdity

Gold and silver were hit by a brutal takedown this morning.

 

Welcome to the post FOMC reaction, as well as the end of the month, and the beginning of the active month of May for silver.

 

These jokers aren't even feeling the need to pretend anymore.

There was intraday commentary on silver here and the metals takedown here.

I hear that a carefully coiffed, long time teddy bear acquaintance says that some big traders are rigging the metals market, but "the government isn't involved at all."  For newbies, he has been saying this for about fifteen years so at least he is consistent.   But it is getting old now.

 

NO involvement. Really? 

 

When there is a blatant, wide open crime wave with daylight muggings and bombings, and the duly designated authorities aren't doing anything about it, I imagine you could say that technically they are 'not involved.'   After all they didn't do anything.  Except not do their jobs.

 

This kind of obstinate credulity is a big part of the problem.  Of course they are involved.  The only question is why?  

 

I have been watching the markets for a long time.  And this is starting to look like a bad dream.  These jokers never know when to stop.  They are emboldened by ever successful caper.  They start to feel like rigging the market is like an entitlement.

 

I will never forget the reaction from an ex pat trader from a major US Bank in London, who when caught red-handed manipulating euro bonds by smashing a quiet market with sell orders, was indignant at being chastised for it.  Hey, we do this all the time back home!  It even had a cute frat name, the Dr. Evil strategy.  He thought he had universal impunity.

 

It's funny but there seems to be a double standard for US traders and 'foreign traders.'   Have you noticed?  Doesn't it seem like the US always goes after the foreign banks and traders even when it involves a general free for all of criminality?

 

Is this some sort of imperial droit du seigneur when it comes to market rigging?  Is this like being able to say that you are a citizen of Rome and entitled to be judged by the emperor alone?

 

Have a pleasant evening.

 

 

 

 

SP 500 and NDX Futures Daily Charts - Wash and Rinse Day - Surreal

So after the bell, here was one of the more surreal things I have seen lately, and that is saying a lot in this environment.

 

Cory Johnson of Bloomberg TV was pounding the table about LinkedIn after the bell, while their ticker showed the stock getting absolutely eviscerated, down over 20%.

I like CJ, and think he is just caught up in the silicon nonsense of stocks that are priced beyond perfection.   Yes Cory, the stock is growing.  But the momentum guys took it to an absurd level where any sniff of reality resulted in a pricing conflagration.

 

Get used to it.  There are a lot of artificial puffballs out there.  

This is a dangerous market. One of the more technically dangerous I have seen since 1987 and the tech bubble.

Be careful out there.

Have a pleasant evening.

 

 

 

NAV Premiums of Certain Precious Metal Trusts and Funds - Silver Active In May Delivery Report

"We looked into the abyss if the gold price rose further. A further rise would have taken down one or several trading houses, which might have taken down all the rest in their wake.   Therefore at any price, at any cost, the central banks had to quell the gold price, manage it."

Sir Eddie George, Governor Bank of England 1993-2003

 

And I think they have been desperately attempting to cover up the consequences of their poor decision making in in bailing out the speculative interests of their banking cronies for the past sixteen years, while digging the hole in which they found themselves ever deeper.

 

The expected FOMC slam on the metals happened this morning with the news that new unemployment claims were much lower than expected.

That the economic news this morning also showed *zero* growth in personal income was ignored. 

Jobs without living wages.   Is this like making bricks without straw?

May is an active month for silver, but not for gold.

So we saw a spike for silver in the delivery report from yesterday as May becomes the silver front month.

I have included that report below. As a reminder, although the number of ounces is large, the volumes moving around the warehouses are also larger than gold.

Still, I wonder what the wiseguys will do if silver ever becomes in short supply, since the central banks do not hold any, and the US long ago depleted its strategic supply.

 

What happens when there is a run on the bullion banks again?

 

Excess leverage on supply constrained assets.  Ain't it a bitch?

 

Post FOMC Metals Rig: Right On Schedule

This is what the pampered princes of privilege do when they fail.

 

They try to hide it.  They lash out.   They cheat.

 

They are petty.  But vicious when frightened.

Most of the successes they have obtained throughout their lives have been gained by cheating, using inside information, rigging the game, exercising influence, position, and privilege.

They twist the fabric of society to weave their robes.

 

They make and break the rules to suit themselves and their friends.

 

They make our markets into bucket shops.  Our laws are just pieces of paper.

 

They try to make other people pay for their mistakes.

 

As they have been doing all throughout their lives.

Success.   They deserve it, one banal and disreputable way or another.

For the good of the system.