immoral hazzard
market vibes
January 23…)
No special data today… Michigan inflation numbers but no one cares about data with the Fed in the ditch and Fink quacking about trust. Trump suing the banks. Subpoenas for discovery. Let that sink in…
Ukraine has a clearer definition now or a lesser role on the world stage. The war is purely between the E-3, Brussels, and Russia. It is telling that von der Leyen declined to join the “Peace Board” and Trump disinvited Carney. Davos is winding down. Ragpickers going through the carnage after the battle. Back to business.
in the markets
Open interest in silver is up 12k since January 16, 60 million ounces of new longs. I thought rising OI would signal liquidation of physical but I was wrong. Open interest is positively correlated with a sharp rally meaning it’s new longs and there is notable futures selling to fill the buyers.
This is the creation of 60 million ounces of new paper supply. So, we’re not in Kansas anymore, Toto. Technically the trend is solidly in force but the volume implies very thin breadth of participation. Is that a big deal? I don’t know.
Nothing about this volcanic rally in silver has been normal. So not normal is good. As long as it keeps breaking the rules, it keeps going higher.
The predictable rise in Comex gold open interest confirms new longs are driving the trend. In longer time frames gold is not crowded on the Comex.
