Stocks and Precious Metals Charts - Bears Make Money, Bulls Make Money

It's an old Wall Street saying that 'bears make money, bulls make money, but pigs get slaughtered.'

I think that observation might also apply to those who make public policy, those in the political and professional classes. And brother, they seem to be wanting to go whole hog.

I am afraid a lot of people who thought they were going to get one thing and going to get another, and in spades. Well, as noted here often, one makes their choices, and then takes the consequences. Not that I have any special talent for being right. But if you do all things with love, I think the consolations of even the poor decisions makes it all come out better in the longer run.

Today Wall Street paused after the 'Fed is dovish' rally yesterday. The Fed will make hawkish noises because they are starting to fear their latest bubble, but their resolve is thin. They can look at the real numbers as easily as we can, and they do not support a recovering real economy by any means.

Gold and silver made another push higher on the weaker dollar, and then fell back a bit into the close on profit taking. Not everything has to be manipulation. But there is certainly enough of that going around that only the willfully blind or naive cannot see, and I no longer have any patience with that sort of behaviour.

But why argue with scoundrels.  We'll let the market sort it all out, eventually.

I like the chart action so far. Let's see what happens next.

Have a pleasant evening.

Stocks and Precious Metals Charts

The Fed did what was entirely expected today, and did it with a pedestrian view towards the future increases.  Slow and steady.

And so the markets were 'surprised', the dollar dumped hard, stocks rallied, and gold and silver got some legs higher.

Today was more a 'technical event' than anything else. In other words, it had all the looks of a setup designed to skin the buy side.

This is what the financiers do when the real economy is lagging badly, and they have little incentive to make productive, long term commercial and industrial loans.

Their preferred methods of making fat profits are centered on collecting more consumer fees and finagling financial assets up and down in a series of bubbles.

Until the banking system is reformed, there will be no sustainable recovery.

We are still in the first one hundred days of Trump's presidency, so I am trying to restrain making any strong forecasts based on his performance. But it does seem like an administration with a split personality, saying one thing and setting up to do other things.

And if I had any hopes for the outcome, it is fading rapidly.  If and when failure comes, the blame game and paranoia is going to get almost unbelievable.

Speaking of inept leadership, in a recent poll the Democratic establishment (party leaders) were rated LOWER than Trump, Pence, and the mainstream media. They were roughly on par with the GOP.

But on the brighter side, they did poll slightly higher than Hillary herself, and the Congress. You may look at it here.

I mention this simply because one might think that the fruits of this epic failure in leadership in general is going to coalesce around the next collapse of the financial asset bubble.  And if so, it could get rather messy.

Rutte is projected to beat the far right Wilders in the Dutch elections.  We'll see the results tonight.

Let's see if gold and silver can extend their gains.  I suspect that with some back and forth action that they may do so.

As for stocks, the Cafe is becoming watchful for another short term bearish entry point.  This will not sustain and cohere around the policies, both fiscal and monetary, that the philosopher-kings are providing for us.   Not unless the trickle down starts trickling down a little harder in terms of real wage increases.  Too many families are living hand to mouth, paycheck to paycheck.

Have a pleasant evening.

No Updates Tonight - Snow Day - FOMC Tomorrow

See you tomorrow.  I am taking a snow day.

Postscript:    We had about ten inches of snow.   There was a period of sleet that kept the totals down, but made the snow very heavy and packed.   And we had a blizzard for a while this morning, so there were some fairly substantial drifts across the drive.

I bought a Toro 826 OXE at the end of last year, and it just tore that snow up, and did not clog once.   I may only use it a few times a year, but it is worth it.  

Stocks and Precious Metals Charts - Snow Day Tomorrow, Snow Job on Wednesday

"The world would be better off if people tried to become better,   And people would become better if they stopped trying to be better off.   For when everyone tries to become better off, nobody is better off.   But when everyone tries to become better, everyone is better off.

Everybody would be rich if nobody tried to become richer.   And nobody would be poor if everybody tried to be the poorest.   And everybody would be what he ought to be if everybody tried to be what he wants the other fellow to be."

Peter Maurin

As you may have heard a nor'easter will be blowing up the coast and through the northeastern US late tonight and tomorrow.  They are talking about a foot and a half of snow with blizzard conditions nearer to the coast.

Fitting that the usual FOMC snowjob also begins tomorrow, with an expected rate hike of 25 bp on Wednesday.   They must raise rates to keep the economy and particularly wages from overheating, or else we might experience inflation.  

This from the Daily Kos:  According to CBO, a 64-year-old with income of $26,500 pays $1,700 for ACA coverage. Under Ryan's bill that person would pay $14,600. That is more than half their income.

This, to cover increased military spending.  And tax cuts for the wealthiest few and corporations.  Nicely done.

There was some intraday information on the Trust and Funds NAV. I have also included the press release regarding the Sprott unsolicited takeover attempt of the Central Fund.

I am going to be posting some updates tomorrow, storm conditions and snow shoveling duties allowing.

As you may recall I purchased a Subaru Forester last fall.  We are very pleased its feature set, and the 32 MPG mixed city and highway mileage it is getting, despite having a very responsive engine and all wheel drive.  I am glad I made the change.

Have a pleasant evening.

NAV Premiums of Certain Precious Metal Trusts and Funds

Sprott Offer For Central Fund of Canada Press Release dated March 8

Sprott Asset Management LP (“Sprott”), a wholly owned subsidiary of Sprott Inc. (TSX:SII), today announced that it has filed an application (the “Application”) with the Court of Queen’s Bench of Alberta (the “Court”) to formally commence proceedings which, if successful, would result in the Class A shareholders of Central Fund of Canada Limited (“CFCL”) (NYSEMKT:CEF) (TSX:CEF.A), effectively, exchanging their Class A shares for trust units of a newly-formed Sprott Physical Gold and Silver Trust (the “New Sprott Trust”) on a net asset value (“NAV”) for NAV basis pursuant to a plan of arrangement (the “Arrangement”). The aggregate value of the proposed Arrangement is approximately US$3.1 billion and stands to unlock $304 million in shareholder value as a result of CFCL’s persistent discount to NAV.

The New Sprott Trust would be managed by Sprott and be substantially similar to the existing Sprott Physical Gold Trust (NYSE Arca:PHYS)(TSX:PHY.U) and Sprott Physical Silver Trust (NYSE Arca:PSLV)(TSX:PHS.U) and would include Sprott’s best-in-class physical bullion redemption feature.