evening wrap

market vibes

Oct 18…)  

 Let’s do the city morgue first this evening.  

NDX futures volume did the impossible today and fell below the July 3 pre-holiday graveyard session. I am agog to hear and read the narratives on Monday.   

S&Ps did not make another ATH (wtf?) and volumes were somewhat livelier at 60k lots more than its Jul 3 sub-uber low levels. Confidence must be contagious.  

WTI open interest (chart below) and spreads fell, products and cracks fell but ranges were contained, and volumes were light. Petroleum and natural gas are stabilizing anchors for financial markets. If oil and gold were rallying with a falling dollar, stocks and bonds would be sh*tting BRICs. More on that later.  

The chart of the day is the GSR or gold silver ratio. True, gold powered up to a second all-time high settling today at its highest ever (in this dimension of reality). But silver blew gold’s doors in, rising $10,000 per Comex futures contract as gold rose $2600.  

The GSR ratio fell 4 big handles. Otherwise said, gold fell 5% against silver as the erstwhile precious metal shed its tattered rep and leapt to 12-year highs. 

It was a spectacular day for gold and silver. Let’s get into it.