evening wrap, january 28
market vibes
9:05 PM EST
If 'pro' is the opposite of 'con' what is the opposite of 'progress'? Paul Harvey
In the news
The Federal Reseve annouced via Peter St. Ong on X, US household wealth grew $12 trillion last year.
Trump announced the launch of $1,000 Accounts seeded by the Federal Government for all American children born between January 1, 2025 and December 31, 2028. Michael and Susan Dell pledged $6.25 billion to fund additional contributions aimed at seeding accounts ($250 per child) for up to 25 million kids, with a focus on lower-income families. Later in the day, JPM, Bank of America, and other companies pledged to match the Federal Government’s $1,000 for the children of their employees. This is by far the best thing any politician has done in my lifetime.
There is a saying in trading: “If you want to learn about the orange juice markets just buy 50 lots… You’ll know everything there is to know in a few hours.” They’re going to wealthy when they’re 20! Millionaires when they retire. Six-year-olds are going to be reading the Wall Street Journal. So…if it’s better than social security, who needs social security?
In other news: Bill Belichick was not elected to the Pro Football Hall of Fame because of some iffy gamesmanship like Brady’s football air pressure and his politics. Mamdani says New York City is facing a “fiscal crisis at the scale of the Great Recession.” Starmer is in China to kowtow (Carney a week ago). China issued a stern pushback on Greenland this afternoon. NATO is histafish. Iran said, “Go ahead. Make my day.”
In the markets
Gold took the lead from bell to bell on high volume in NY today and all pro-trend indicators are solidly in force tonight. Range extension of $264.00 (low to high) was the highest since the sell-off on December 29. The higher gold goes the more aggressive buyers become.
This is usually an indication of new longs and covering shorts competing more and more aggressively for offers… offers that seem to be ever thinner as prices rise. In fact these 7 consecutive days of higher highs and higher lows without a down rotation (trading below the low of yesterday) are an excellent example of a vertical price void.
We are not talking about cheese here in gold. Someone just wants to get out of the trap.
After closing at the 5PM high of the NY session, gold prices ripped $80 higher in the first 30 minutes of the early Asian session (next chart). Roughly $140.00 higher than my comments above written at 3:45 PM.
