Stocks and Precious Metals Charts - The Wash and Rinse Continues

 

“The explanation requiring the fewest assumptions is most likely to be correct.” 

William of Ockham 

 

"Ignorance is the mother of presumption." 

Marie Le Jars de Gournay 

 

“The most important things to say are those which often I did not think necessary for me to say — because they were too obvious.” 

André Gide

 

 
"When speculation has done its worst, two and two still make four." 

Samuel Johnson 

 

The underpinnings of the equity markets is froth.

 And so we should not be surprised at its apparent instability.

Speculation can only go so far, and then retreats with all haste in the face of its mispriced assumptions.

But greed turns to fear and fear back to greed, so the wash and rinse continues.

The easy money in this bubble has been made. 

Stocks plunged but managed to claw their way back to unchanged at the close.

Gold was up a bit along with the Dollar.

Silver showed some sympathy with the market weakness.  It often does.

The VIX rocketed and then backed off with the bounce in stocks.

Is this the wash out that ends what is a normal and customary correction in a bull market?

Are you feeling lucky?

FOMC on Wednesday.

Precious metal option expiration on the COMEX also on Wednesday.

Have a pleasant evening.

Stocks and Precious Metals Charts - Dead Reckoning

 

"What good is it, brethren, if someone claims to have faith but does not perform acts of love?  Can this kind of faith save them?  If a brother or sister is poorly clothed and lacks food, and one of you says to them, 'Go with God, keep warm and eat well,' but do not help them at all to receive what they need, what good is this?  So also is faith, which if it does not flourish as acts of love and exists alone with itself, is dead."

James 2:14-16

 

“Reality denied comes back to haunt.” 

Philip K. Dick, Flow My Tears, the Policeman Said 

 

"The seed sown on rocky ground is the person who hears the word and receives it in faith with joy.  But their faith takes no root in their daily lives and actions, and does not endure.  When personal sacrifice or persecution come because of the Word, they quickly fall away.  And the seed sown among thorns is the person who hears the word and takes it into their hearts, but the struggles of material things and the seductiveness of money choke their faith, so it produces nothing, no fruits." 

Matthew 13:20-22

 

"Through the mills of God grind slowly, yet they grind exceeding small; With patience He stands waiting, with exactness He grinds all."

Friedrich von Logau, Sinngedichte

 

“It is better to be a child of God than king of the whole world.” 

Aloysius Gonzaga 

 

Stocks were hammered down again today, going out near the lows.

Reckless capital meets mispriced risk, and is consumed.

This is not constructive for bully.

Stocks are falling hard, without a noticeable exogenous event.   

Smells like a taper tantrum.

The major indices are at some 'must hold' levels if this is to be a correction, and not a rout. 

As the old saying goes, 'as goes January, so goes the year.'

Gold and silver gave up some gains in the selloff, but managed to hold some impressive advances for the week, especially in the case of silver.

The Dollar drifted lower.

VIX rocketed higher.

FOMC next week.   

Have a pleasant weekend.

 

 

 

Stocks and Precious Metals Charts - Ouch - Option Expiration Tomorrow

 

 

“Only fraud and falsehood dread examination.  Truth invites it.” 

Samuel Johnson 

 "A kleptocracy is sucking the life out of working men and women by force and fraud.  A group of sociopaths, who have committed one of the great crimes in history, not only blithely walk away with their loot unpunished, but come back to rob their victims once again, to finish the job.  And they gorge themselves on the public trust even while begrudging the widow her pittance, or trying to steal it.  They pervert and corrupt so many, filling their hearts with their passionate lies, appealing to what is the very worst in them.  They are truly a den of vipers and thieves." 

Jesse, September 2012

 

Stocks tried to rally but then fell back badly into the close. 

Lower lows were set, which is not constructive for bully.

Gold was off a bit, but silver managed to hold on to its gains.

The Dollar rallied back up towards 96.

Option expiration tomorrow.

It's a nice time to lay back and sit tight in cash.

Let's be careful out there.

Have a pleasant evening.