evening wrap, september 8
market vibes
“Sarcasm: the last refuge of modest and chaste-souled people when the privacy of their soul is coarsely and intrusively invaded.” Fyodor Dostoevsky
Monday was probably the most boring session in weeks so I’ll just pen a few notes on gold and stocks and say good night. If we’re going to have another day like this one tomorrow, I need to get some rest.
In the markets
Gold made all-time highs again because trust is a feeling, not a word and that feeling is at generational lows, imo. Gold isn’t up because of this or that like inflation. Gold is up because of everything. Bonds, stocks, vaccines, you name it. Same idea in silver.
Meanwhile in France the PM took a drubbing Macron may be forced to disolve Parliament. The UK and EU same issues. The war gets worse.
Gold monthly data.
Keep an eye on DXY. Chart below monthly data.
Stocks went up in the last 30 minutes of the session as usual. The rest of the session was an utter dead zone. I wonder if stocks have become so alienated by algorithms that the models are unaware of how deeply recent narratives have damaged public trust in U.S. financial institutions. Or is gold wrong? They can’t both be right.
In other markets, nothing moved, so those charts are the same as Friday across the board. They might be the same until next Wednesday. It is painfully ironic that we must stop trading for so long because we’re afraid to risk being wrong about what we we knew would happen on Friday, August 22, at 10:00 a.m.
my vibe
In my opinion, Gold is going to trade higher until this AI madness stops, which doesn’t look like anytime soon. Stocks won’t go down because they are the primary source of AI madness. Once upon a time they were the essence of our national patrimony.
Having written that rather unhappy summation, here’s soothing guitar duet to wind up another tough day of nothing.
Night all… good luck in Asia.
JJ
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Charts and data CQG and Bloomberg
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I met Chet Atkins in the men’s grill at Brentwood CC in Nashville when I was 30 years old. I was having lunch with my boss, and Mr. Atkins was dining alone. I asked him if he’d like to join us and he said yes. My boss had no idea who he was. We didn’t talk about music at all. What a nice man.
You have a great ability to take nothing, and turn it in to something worthwhile and a great read. As opposed to all of the institutions we can no longer trust who take something (usually ours), and turn it into nothing. Thank you 🙏
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