"Love does not consist in gazing at each other but in looking outward together, in the same direction."Antoine de Saint-Exupery
01 August 2014
As it is in love, so it is in most endeavors involving groups of people. There must be a meeting of the minds, and a commitment to common goals despite any differences.
More simply, it is the priority of caring. It is torn apart and rendered helpless by stubborn grudges, obstinate pride, and the indifference of selfishness and injustice.
I have seen even venerable organizations torn apart by the willful selfishness and jealousy of a relative, but powerfully articulate, few. They took the ship itself down, fighting for every last perk, every last vestige of power.
Gold had a bounce back today, while silver tended to linger near the lows for the week. For some reason I had a very good feeling about the action in gold as I watched the tape.
There was nothing particularly remarkable in the price action, except for the obvious capping which is back on, keeping gold below the psychological level of 1300 and silver below 21.
What was surprising is that in the first report for the month of August almost 20% of the registered gold in the Comex warehouses was stood for in delivery at the price of $1281. We won't see what happened today until next week.
This is not to say that the Comex will run out of gold, or that this is some kind of default scenario. As we have seen, the Comex is no longer a delivery market, and most of the metals there just move around the plate within the warehouses and the ETFs and Funds.
Rather it was an indication that a price level of 1281 brought out a lot of buying. So we will take it for what it is worth.
Geopolitical jitters will continue to dominate, and the US economy will continue to stagger on, given the life support trickled into it by the Dr. Feelgoods at the Fed, and the Dr. Frankensteins in the Congress.
Remember the innocents, and all those who suffer in quiet with their own burdens and trials everywhere. Harshness is the easy course, and a strong temptation, to finally become what we hate. Love is the way of all goodness, and life.
In the beginning, a man will marry a woman because he thinks that she will not change. And a woman will marry a man because deep down she thinks that she can change him. As they get older, a man grows sentimental, and a woman grows much more practical.
But in the end, it is all the same if they are still together, as one looking outward at life together.
Have a very pleasant weekend.
Posted by Jesse at 4:35 PM
Markets had big swings up and down early on before they settled into their own form of low volume mediocrity.
The big resistance is fairly obvious underneath this pricing action here, and I suspect strongly that the next moves will be determined by the course of geopolitical events, or the lack thereof.
Some years ago I used to take the occasional trip down to Key West when I was in the southern Florida area on a long business trips, and visiting friends in the Miami and Tampa areas. My wife often came with me before the children arrived.
On one trip we rented a big green station wagon we nicknamed 'The Shark' and drove down the keys to Key West. It was a wonderful, generally unspoiled place. I wanted to see Hemingway's house down there, which is a great stop, and also wanted to stand at the beginning of US Route 1, and the southernmost point of the US.
I had a chuckle or two at Hemingway's. The receptacle he had tiled and turned into a fountain for the cats from the original Sloppy Joe's Bar is a hoot. And the way in which they constructed the brick fence and the backing for it made me laugh out loud. I won't give anything away. You'll have to go down to see it. I was never much of a Hemingway (or Fitzgerald fan) much past high school, but he was certainly interesting, and I liked his house there quite a bit. It would have suited my tastes quite well..
I flew in one time, and the airport was a one room building with a little area for baggage. It was remarkably simple. We had been there a few times a year, but on the last few visits in the late 1990's the town and beaches seem to have gotten much more built up and touristy, like Las Vegas. The housing prices had gone through the roof, and hotel and resort developments have changed the character of the place. From the pictures it looks like they have jammed the place up with condominiums.
Still, I am sure that it is still nice to have some fresh lobster and conch chowder, and go down to the quay at Mallory Square for the sunset if you get a chance, and watch the natives gather. lol. We still have some baskets of shells which we had gathered while walking hand in hand on the beaches in the 1970's.
It's the weekend. Have a good one.
Posted by Jesse at 4:19 PM
31 July 2014
Today was not unexpected. Let me repeat. I was not surprised.
The markets today were so boring, in the manner of a staged match in professional wrestling, that I actually broke down and watch a DVR'd copy of 'Sharknado II.'
It was absurd to the point of being clichéd and campy but without genuine laughs, just like the current US Congress.
This was the 'wash and rinse' that was being written all over the charts.
Stocks dropped about 2%, and gold and silver were under continuing pressure for most of the day.
It did not seem like a panicky sell off, based on the Argenine default, although the VIX spiked pretty hard.
Rather, it looked like the type of very cynical market move that has characterized almost everything we have seen from the equity markets Matrix for some time now. Now that we have run them up, let's do a quick dump of stocks to once again try to skin the pension and mutual funds, along with mom and pop.
The gold and silver sell off, despite the big drop in stocks, ahead of the Non-Farm Payrolls report tomorrow, was just too much. Wow, precious metals hit ahead of a Non-Farm Payrolls Report. What a surprise.
Well, let's see how things progress. This *could* turn into something else, but for now it seems about as manufactured and orchestrated as the crisis in the Ukraine, and the neo-con beating of the war drums with Russia.
The markets are not as invincible as this newest crop of the Masters of the Universe think that they are, even though they have been on quite a market-rigging, justice fixing roll.
Doesn't this whole thing with Russia seem about as weird as the sudden push for war in Iraq that we saw in the Bush Administration? Its pretty clear what the motives were then in terms of making the most of a phony crisis. I wonder what they are up to now?
Have a pleasant evening.
Today was 'laundry day' at the US markets, as the foamy stock peak of the past month took a hard turn in the old 'wash and rinse' cycle, that blew off the froth.
Posted by Jesse at 4:28 PM
30 July 2014
“We’ve had a lot of bombs being thrown around the world, and this is America throwing a bomb into the global economic system. We don’t know how big the explosion will be — and it’s not just about Argentina.”Joseph Stiglitz
Gold took a little hit today, and silver held its price.
Very anti-climactic given such an impressive sign of recovery in the real economy!
Nothing much happened on the Comex exhibit at Madame Tussaud's. The clearing report for all metals (gold, silver, platinum, copper) was simply 'no data' as shown below.
The tragicomedy that is the Argentine debt default continues on 'to the wire.'
As for the markets, there will be a lot of noise created, the stock and bond touts will all be out there making their pitches, but the bottom line is that the death and misery of the hoi polloi will leave the markets unfeeling, and the Fed isn't going to be doing anything except to continue to taper, but provide easy money for the fortunate few for quite some time.
The currency war has taken a hotter turn than I might have expected at this stage, with the US out banging the war drums very actively as a distraction. I suppose that one might not be so surprised. The privileged will do almost anything rather than surrender the status quo.
Have a pleasant evening.