the beat-down goes on
market vibes
October 21…)
“If it flies or it floats, rent, don’t buy.” Anonymous
Limited data today, as the shutdown enters a fourth week… Redbook same store sales (flat for months) and API petroleum inventories today.
In the news
There really is nothing new in the press. The banks are making a lot of money, but that is not new. China’s economy is in the ditch; not new either. America is doing well but needs lower rates because it’s not doing that well.
In foreign lands, the last thing I heard about the forever wars is the EU is imminently about to abrogate Russia’s custodial interest on $300 billion USD to buy weapons from Trump and give them to Zelenskyy… which is very bad news. And, peace by any other name in the Mideast is a process with a shot (pun intended).
In lighter fare, a posthumous memoir by Virginia Giuffre, who accused Prince Andrew of rape, went on sale in London today. And the Blue Jays won the American League pennant! It should be a superb World Series if they win that too.
In the markets
On Saturday, I wrote: “Wherever these ounces of gold, silver, platinum, and palladium came from doesn’t matter in the moment. Leased, hypothecated, or physically available … the ounces are in the market now with optimal entry prices $2.50 to $3.00/oz. higher in silver, $100 to $200 higher in gold, $100 to $200 higher in palladium, and $100 to $170 higher in platinum.”
And I wrote this… “[very high volume] implies the sellers at the highs have location at the highs, and buyers at the highs have location at the highs.” Keep this in mind in coming days and weeks.
So far, silver is just beginning to retest its October 9 melt-up ranges, and gold is still contained in its October 17 range and well above last Friday’s lows. The markets are moving horizontally, but short term the POCs (points of control) are as volatile as flat prices.
It appears we are entering a period of horizontal activity, but there is no way of knowing where or when reliable support and resistance will develop… or if this is just a temporary pause in an ongoing major bull move. If you have unassailable free exposure, chill. If you’re looking to trade, these are good days to hit and run.
let’s look at some charts
