21 November 2014

Gold Daily and Silver Weekly Charts - Comex Option Expiration Monday

Next week will be a short trading week because of the US Thanksgiving holiday.

Monday will be the last Comex option expiration for the year, for the December contract. We may wish to brace for shenanigans.   We are reaching a more critical point in the markets, but do not, absolutely do not, expect this to be easy.  
The big changes come when we least expect them, and then as a thief in the night.  Betting on short timeframes with leveraged bets is a losing trade 99 times out of 100.  And if you hit it big one time, you may chase that adrenalin high again and again, until you are exhausted by the time things really break your way.

Gold and silver continue to dribble out of the Comex warehouses. For a quiet month we saw a bit of gold taken out of New York.

There was some very interesting news today.  I featured both items.
As it turns out while Germany was waiting and the Swiss are considering their decision, the Dutch managed to quietly, some say secretly, repatriate a good chunk of their gold from New York back to Amsterdam.   From their glory days roaming the world the Dutch understand that possession is nine-tenths of the law.

We also heard Senator Carl Levin criticize the Federal Reserve for enabling the Banks obtrusive entry into the commodity markets, where they were faced with a candy store of opportunities to manipulate prices, obtain inside information, and to basically fill their own greedy pockets by using subsidized funds from the Fed. 

Levin may as well have turned to his colleagues on the Hill and shamed them as well.

Until there is reform, there will be no recovery.
Nobody wins unless everybody wins. 

Have a pleasant weekend.

SP 500 and NDX Futures Daily Charts - Another Record Close, Sweet Dreams Baby

Next week will be a short holiday week with the Thanksgiving Holiday on Thursday, and 'Black Friday' the day after when everyone goes shopping for happiness and fulfillment.

We will see the second estimate of Q3 GDP on Tuesday.

The market is hitting a bit of a high note here, with record close after record close.

The market is going to break. I don't know how deep it might be because I cannot yet tell if this will be a normal wash and rinse or the beginning of something more involved. It probably depends on what provokes it.

Let's be thankful for what we have.  And remember what is most important in life.  Things can be replaced, but people can't.

Have a pleasant weekend.


Senator Levin: Fed Enabled Banks To Elbow Way Into Commodities, Manipulate Prices

Apparently Senator Levin is not expecting many $250,000 speaking engagements from Wall Street after he leaves the Senate.

The Wall Street Banks have NO business using their subsidized banking funds and deposits to speculate in global markets for their own accounts.

This was the basic safeguard provided by Glass-Steagall for almost sixty years that was overturned in a bipartisan political effort at gettin' paid.

US Senator Carl Levin Opening Statement, Day Two

"The Federal Reserve is considering arguments that Wall Street banks provide hard-to-replace services in these areas. But the separation between banking and commerce has served markets and our economy quite well for decades. And the erosion of that barrier is clearly doing harm today.

Any discussion of these physical commodities activities must begin and end with the need to protect our economy from risk, our markets from abuse and our consumers from the effects of both.

Wall Street banks with near-zero borrowing costs, thanks to easy access to Fed-provided capital, have used that advantage to elbow their way into commodities markets.

Bad enough that this competitive advantage hurts traditional commercial businesses; worse that it opens the door to price and market manipulation and abusive trading based on nonpublic information."

Read the entire statement here.

Plutarch, De Superstitiones 171
... but with full knowledge and understanding they themselves offered up their own children, and those who had no children would buy little ones from poor people and cut their throats as if they were so many lambs or young birds; meanwhile the mother stood by without a tear or moan; but should she utter a single moan or let fall a single tear, she had to forfeit the money, and her child was sacrificed nevertheless; and the whole area before the statue was filled with a loud noise of flutes and drums took the cries of wailing should not reach the ears of the people.

Dutch Quietly Repatriate 120 Tonnes of Gold From New York

It looks like the Dutch brought back 120 tonnes of their gold from New York while no one was looking.

From the Ukraine, with love?  Perhaps they contributed their 30 tonnes which was last seen headed West on a night flight in April.

Meanwhile Germany obediently waits, for years, and the Swiss dither.

The Wall Street Banks thank you for your patience.   Have a nice day.

Dutch bring 120 tonnes of gold back to Amsterdam from New York
November 21, 2014

The Dutch central bank has secretly brought a large part of the national gold reserves being held in a secure depot in New York back to Amsterdam. In total, 120 tonnes of gold valued at €4bn has been brought back to the Netherlands by ship, Nos television said.

The high security reparations for the move took months. The central bank decided to bring some of its gold reserves back to the Netherlands to ensure a better spread, the bank said in a statement. In addition, the bank hopes to boost consumer confidence by showing there is enough gold in the Netherlands to take the country through a new economic crisis.

Now 31% of the Dutch gold reserves are in Amsterdam, the same percentage as in New York. The rest is in Ottowa and London. The Netherlands has 612 tonnes of gold – worth €19bn at current gold prices, Nos said.

20 November 2014

Russian Gold Reserves Continue to Expand

Russia added another 600,000 oz to its reserves in October.

Nothing to see here.  Move along.

Gold Daily And Silver Weekly Charts

There is quite a bit of volatility in the precious metals as they sit at this important resistance level ahead of what could be an important active month of December.

There was little delivery report activity, and the usual dribbles of bullion out of the Comex warehouses as noted below.

There is intraday commentary related to gold and silver and you may scroll down to read it.

I am leaving a bit early today to keep an appointment.  

I will catch up on any late news or market changes tomorrow.

Have a pleasant evening.


SP 500 and NDX Futures Daily Charts - Saving Private Equity

There was an astonishingly high Philly Fed number this morning.

It certainly helped to bring stocks out of their early slump.

I suspect that there was some misapplied seasonality in there somewhere, since the unemployment number and the rest of the bigger picture certainly does not support it.

I decided to say positive things to day or say nothing at all, so I will leave it at that.  Except that I reiterate my long standing belief that this experience of serial bubbles and widespread financial fraud will lead to new thinking in economics, and a change in the current financial system and Federal Reserve structure.

I can only hope that it will be for the better, and they will not have to knock more than two zeroes off the Dollar when they finally reform the system.

Have a pleasant evening.