Stocks and Precious Metals Charts - Fed: Asset Prices Vulnerable To Significant Declines

 

"Rising asset prices are posing increasing threats to the financial system, the Federal Reserve warned in a report Thursday.  Fed Governor Lael Brainard said the situation bears watching and points up the importance of making sure the system has proper safeguards. 

'Asset prices may be vulnerable to significant declines should risk appetite fall,' the central bank said."

Jeff Cox, CNBC, Fed Cautions on Stock Price Vulnerability

 

Gold and silver had big moves higher today, taking on key resistance at breakout levels. 

The major stock indices went out on the highs.

The Dollar declined.

The VIX dropped to recent lows.

There will be a Non-Farm Payrolls report tomorrow.

The markets traded as though they are anticipating a weaker than expected number, which will be dovish and friendly for maintaining lower interest rates.

At the end of trading there was a news flash that says that the Fed warns that asset valuations 'may be vulnerable' if risk appetites should decline.

Let's see how the markets digest that eye-opening, ass-covering admission by the bubble-meisters.

Have a pleasant evening.

Stocks and Precious Metals Charts - I Remember Mama

 

“When the child must be weaned, the mother too is not without sorrow at the thought that she and the child are separated more and more, that the child which first lay under her heart and later reposed upon her breast will be so near to her no more.” 

Søren Kierkegaard 

 

Janet Yellen walked back some of her interest rate related verbiage that had roiled markets earlier this week.

It just goes to show how skittish the markets are at these valuations in the context of our current circumstances and uncertainty.

Gold was up a bit and silver was nominally unchanged.

The Dollar chopped sideways.

The SP 500 moved up a little after giving up most of the day's gains.

Big cap techs drifted lower.

Traders seem to be holding their breath, waiting for the Non-Farm Payrolls report on Friday.

This is a Fed subsidy dependent market, waiting to see if an organic recovery can take hold.

And thereby it can taper off its support and wean the market from its artificial dependency on expansive monetary policy.

Have a pleasant evening.

 

Stocks and Precious Metals Charts - Back Off

 

Gold and silver backed off a bit today from yesterday's high note. 

The Dollar took back the 91 handle. 

The SP and NDX both fell, at one point rather sharply. 

 But they did managed to finish off the lows. 

Non-Farm Payrolls on Friday. 

Have a pleasant evening. 

 

Stocks and Precious Metals Charts - Hi Yo Silver, Away!

 

"If you pray and love, that is where happiness lies." 

John Vianney 

 

Gold and silver rebounded sharply higher from the end of month boogie woogie of last week. 

Stocks were mixed with the SP 500 higher and the big cap tech NDX lower. 

The Dollar declined giving up the 91 handle. 

Chairman Powell threw a damper on the speculation about higher interest rates that the trading desks were pushing (for their own purposes) last week. 

There will be a Non-Farm Payrolls report on Friday. 

It was a bit cooler today, so I spent a good part of the afternoon hanging out with Pete Moss and friends in the garden.

Have a pleasant evening.