evening wrap

market vibes

October 3…) 

“You were made as well as we could make you.” Dr. Tyrell - Blade Runner  

My first comment for the day, the dollar came in strong and stayed strong.  

ISM came in hot  

Silver and gold came in steady got hit rather hard on ISM and rallied, silver was notably strong despite the dollar and a hawkish ISM.  

Staying with silver …SLV prices continue to flirt with new 12-year highs at $29.56/ share (monthly data)

Millions of shares of SLV calls will expire tomorrow, October 11, 18 and November 15 between $28 and $32. Have a look for yourself. Technically this is one of the better-looking rising wedges that I have seen in a long time. However the guardians of gamma are formidable. Are they bigger than the market?

An interesting anomaly in silver … PAAS a best breed silver miner imo, is trading at the same level it was trading when silver was $4 to $5 lower in early May. I can’t explain it but it appears to be the short leg of a long- short pairs trade? At any rate mining shares are as hard to buy as they are to sell. As you can see, they do revert.

Disclosure: I own silver, mining shares and SLV.  

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