15 May 2017

Stocks and Precious Metals Charts - No Worries


As a reminder there will be a stock option expiration this week.

There will be a Comex precious metals options expiration next week.

The commodities were rallying a bit today on a lower dollar and higher oil.

The SP managed to stick a cash close over 2400.

No worries in the markets. As long as the volumes are low and the news is less than a punch in the face.

Have a pleasant evening.


14 May 2017

US Gold Reserves and the Adjusted Monetary Base


Here is the value of the US Gold Reserves in Dollars based on the market price versus the St. Louis Fed's Adjusted Monetary Base.

This chart is from goldchartsrus.com.



13 May 2017

Gold and Silver Technical Charts


Gold and silver are short term oversold, and *may* be putting in a bottom here, at least for the short term.   The technical measures are shown on the first two charts.

Silver has been underperforming gold on this latest move later.  But that is typically what an asset with a higher beta does.   It underperforms on the dips, and overperforms on the rallies.

Gold and the SP 500 have turned in a similar performance year-to-date as shown on the third chart.

The gold/silver ratio is high as you can see on the fourth chart, but it seems to have been trending higher for some time now as gold and silver have been in a corrective pattern.

If a precious metal rally returns, that should change as silver obtains greater traction to the upside.




12 May 2017

Stocks and Precious Metals Charts - Plutocracy - Moral Hazard Deluxe


"Since I entered politics, I have chiefly had men's views confided to me privately. Some of the biggest men in the United States, in the field of commerce and manufacture, are afraid of somebody, are afraid of something.

They know that there is a power somewhere so organized, so subtle, so watchful, so interlocked, so complete, so pervasive, that they had better not speak above their breath when they speak in condemnation of it.

The government, which was designed for the people, has got into the hands of bosses and their employers, the special interests. An invisible empire has been set up above the forms of democracy."

Woodrow Wilson, The New Freedom, 1913


"The state within a state is hiding mostly in plain sight. The pressure to conform to an authority figure or peer group can cause people to behave in shocking ways.

It is not too much to say that Wall Street may be the ultimate owner of the Deep State and its strategies, if for no other reason than that it has the money to reward government operatives with a second career that is lucrative beyond the dreams of avarice— certainly beyond the dreams of a salaried government employee.

The corridor between Manhattan and Washington is a well-trodden highway for the personalities we have all gotten to know in the period since the massive deregulation of Wall Street."

Mike Lofgren, Anatomy of the Deep State


Mounting a campaign against plutocracy makes as much sense to the typical Washington liberal as would circulating a petition against gravity. What our modernized liberal leaders offer is not confrontation but a kind of therapy for those flattened by the free-market hurricane: they counsel us to accept the inevitability of the situation.

Thomas Frank, Rendezvous With Oblivion, 1 September 2006


“There are two ways to be fooled.  One is to believe what isn't true; the other is to refuse to believe what is true.”

Søren Kierkegaard

Next week we will be having the stock options expiration for May.

Stocks limped weakly throughout the day, with big cap tech providing the brightest spot. Since they are now the core of the bubble, it is only fitting.

Gold and silver continued to chop sideways.

Have a pleasant weekend.



11 May 2017

David Talbot: The Rise of America's Secret Government and the Deep State


“Our country’s cheerleaders are wedded to the notion of American exceptionalism.  But when it comes to the machinations of power, we are all too similar to other societies and ones that have come before us.  There is an implacable brutality to power that is familiar throughout the world and throughout history.”

David Talbot, The Devil's Chessboard


"The argument that the two parties should represent opposed ideals and policies, one, perhaps, of the Right and the other of the Left, is a foolish idea, acceptable only to doctrinaire and academic thinkers.  Instead, the two parties should be almost identical, so that the American people can 'throw the rascals out' at any election, without leading to any profound or extensive shifts in policy."

Carroll Quigley, Tragedy and Hope