Today was another classic day of market schizophrenia.
Economy Bad: Sell stocks, crude, copper and grains.
Bad Economy Means More QE: Buy bonds and gold.
Rest assured, just as quickly as WOPR sold stocks today, WOPR will buy them back tomorrow. In fact, here's an ES chart to guide you:
Silver is still an odd duck, though. As you know, it didn't tag along with gold today. Or did it? From a different perspective, since late Thursday, gold has rallied from 1515 to high today of 1551. That's 2.38%. Over the same time period, silver has moved from a low of 36.26 to a high today of 38.50. That's 6.18%! So don't dismay, silver has good buying support from 37.50-60. Someone or something seems to want to keep it below $39 but they won't win. As we enter June with the critical "delivery" month of July on the horizon, silver will continue to find a bid. Of that you can be confident.
Gold is what intrigues me the most here, though. Did you realize that today's Comex close was the third highest ever? The only higher closes are $1557.70 and $1558.40 on 4/29 and 5/2. That's it. Today is ranked #3 on the all-time list! Something tells me you haven't heard that mentioned on CNBS. At any rate, on the chart below you can begin to clearly see why I expect such tough sledding between 1550 and 1560. Let's just wait and see what the end of this week brings. Either the BLSBS will confirm ADP and gold will soar through 1560 and attempt to make an alltime closing high or MOPE will allow for the media shills to SPIN the number into something gold-negative. I guess what I'm saying is: No sense buying more here. The upside is capped for now. Let's wait to see how things look on Friday at around 9:00 am EDT.
Again, today was just another day in the crazy world of investing and preparation. Keep the faith, relax and be happy. Have a great evening! TF
p.s. It just dawned on me that I should have mentioned crude. I wouldn't want anyone to think I'm hiding from it. Obviously, today's move caught me by surprise, which is certainly going to happen from time to time. Eight hours ago, the chart looked like 104-05 was coming today. Now, I'll just be happy to see it stay above $100. Yikes! It could decline further but the upper 90s still look to provide excellent support so I'd be looking to be a buyer somewhere around $98, if it reaches down that far.
4:10 EDT UPDATE:
The Criminal Evil Empire has chosen to once again raid the metals on the afterhours, thinly-traded Globex. Using a weakening equity market as cover, The Cartel sent out the monkeys and successfully clipped $1.20 off of the price of silver in just 13 minutes. They even managed to turn gold negative for a few minutes, effectively wiping out all $16 of hard-fought pit gains. Fuckers. It reminds me of this now-famous rant:
Our "markets" are a sham and a farce. Endlessly manipulated by the Fed's primary dealers to create the illusion of a sound dollar and a stable economy.
In the end, re-read the top of this post. Keep stacking physical metal. It is your only insurance against the thievery and destruction brought about by our Monetary Masters.