27 February 2017

Stocks and Precious Metals Charts - Here Come Donnie and Snapchat

There are two notable events in particular this week that may affect the markets.

The first will be President's Trump address to the joint session of the Congress tomorrow night.

Since this is his first term, it will not be called a 'State of the Union.'  And I doubt he will start with the traditional opening phrase, 'the state of the union is strong.'

But he has expressed the intention to make a 'big announcement,' so we'll have to see if anything of substance falls on the table with regard to infrastructure spending and tax cuts, not to mention healthcare.

The second event will be the IPO of Snapchat, in the form of SNAP, which is likely to be coming out to market on Wednesday.   I am going to be watching the aftermarket action closely, as well as the ability of the wiseguys to sustain these lofty levels in equities.

As you know I am leaning towards a suspicion of the usual shenanigans and antics by the money men, but still keeping an open mind.  It is hard to tell exactly what flavor of scam they may be weaving.

Next week we will get the February Non-Farm Payrolls report.

Gold and silver were attempting to rally higher today, but gave up their gains and went negative, even as stocks rallied.   Interestingly enough the VIX finished higher.

AngloGold Ashanti (AU) has indicated it will begin to pay a dividend again today. The stock is troubled by speculation about its South African holdings and some share sales by its CEO.

The US Dollar did not show much in the way of gains.  That chart is included below.

The warehouses at the Comex were relatively quiet.

Have a pleasant evening.

24 February 2017

Stocks and Precious Metals Charts - God and Mammon and Power

"The world is ours, we are its lords, and ours it shall remain. As for the host of labor, it has been in the dirt since history began, and I read history aright. And in the dirt it shall remain so long as I and mine and those that come after us have the power.

There is the word. It is the king of words— Power. Not God, not Mammon, but Power. Pour it over your tongue till it tingles with it. Power.”

Jack London, The Iron Heel

"What is good?  All that heightens the feeling of power in a man, the will to power, power itself.  What is bad?  All that is born of weakness.  What is happiness?  The feeling that power is growing, and that resistance is overcome."

Friedrich Nietzsche, The Antichrist

"No one can serve two masters, for he will hate the one and love the other, or he will be devoted to the one, and be neglectful of the other; and so you cannot serve both God and Mammon."

Matt 6:24

Gold stuck a close over the 1250 mark, largely on dollar weakness.

Once perceived volatility starts picking up, I suspect that gold and silver will obtain enough energy to take on the more important downtrend and psychological resistance on the charts, around the 1290 to 1300 level.

For the higher volatility silver weekly chart, I have an eye on 21.50 to 22.   If silver can take out those levels and hold them decisively, then one must look at a potential run to 30.

Stocks are pausing here as I had suggested they might.  I don't quite see a big downtrend developing yet.  I do think a market break is possible in March.   If that does happen, then we will have to start keeping a close eye on how the markets and the policymakers react to it, with some potential thoughts towards a bleak October.

But that is far, far ahead of ourselves.  For now things seem relatively stable.  But there are some clouds on the horizon.

There were few clouds on the horizon here today, as the skies were sunny and blue, and the temperatures were in the high 70's, a surprisingly nice surprise for February.

Try to remember to feed God's creatures, and the poor, and to pray for those poor in spirit, who do not even comprehend their spiritual poverty.

Have a pleasant weekend.

Mark Blyth and Jimmy Dore On NeoLiberal Economics, Greece, the EU, and Hubris

"And this to the credit of the Trump folk is something that they get that the Democrats do not want to even acknowledge. They have created this neo-liberal system...where it is individually rational for any firm to rip the other guy's face off for a profit. But what if we all end up faceless? Everybody loses. That is the race to the bottom."

Mark Blyth

23 February 2017

Stocks and Precious Metals Charts - No Breakouts or Breakdowns Yet

After the bell the Trump Administration's DOJ rescinded the ban on the use of private prisons for Federal prisoners. Progress!

Perhaps they can explore the use of private workhouses and poorhouses for those who will continue to become impoverished by policies that favor a redistribution of the wealth to the top few percent.

Oh wait, they already have those. It is called working for below poverty wages while having to compete with near slave labor working in deplorable conditions in authoritarian and plutocratic regimes.

Stocks were weak to sideways today. Unless something happens to trigger selling, I suspect we will see the major market indices hanging in there until at least the SNAP IPO comes out in early March.

And the band played on.

Have a pleasant evening.

Net Asset Value Premiums of Certain Precious Metal Trusts and Funds