here we go again

market vibes

April 4…)

Good morning brave traders. We are beyond any technical analysis. I won’t bother. There is no bottom until the markets find it. Everyone is on their own.

NFP this morning usually a hush becalms the market in anticipation of the latest BLS report on the health of the economy, which by all credible accounts is doing fine.

However, in the markets

Stocks are crashing again.

Oil is crashing again, copper is crashing down 5% and silver is relatively steady down 1.5%. Palladium is down 10% since Wednesday.

Bonds are flying.

And wait a minute… gold is up $30… usually when the margin calls go out gold gets sold. Usually when serious stress besets the financial system probative CBs get the trolley and sell some gold. Sniff sniff… what is going on here?

I have a hunch. Let’s set the way-back machine to February 2008.

In February 2008 April Comex gold made an all-time high of $978.00 and settled at $976.70. In March gold broke $1000/toz, topped at $1040 and went straight down into October 2008 losing 40% at the bottom.

In Februsary 2008, March WTI was trading $100/ barrel.

The WTI crude to Comex gold ratio equaled 10 barrels of oil to an ounce of gold, a relationship that had been stable since Y2K. Today that RV is down almost 90% from its high in 2008. In fact gold is $2000/toz higher and oil is $90/barrel lower. Let that sink in.

The Gold platinum RV made an ATH yesterday. Gold Palladium made a 14-year high. Gold silver made a penultimate ATH at 98 toz silver to the ounce of gold yesterday. Gold copper made a penultimate high. And where an ounce of gold would only fetch 10 barrels of oil in 2008 today it buys 50.

I’ll tell you a story.