Loading ...Could it be panic sell offs of long term shorters? Or shorters taking profits? “buy to cover”? The prices were really getting ridiculously low.
I was just looking at the volume and % gains of many G&S etfs and stocks–and I can’t fault todays rally
It looks like the genuine article–GDX had 82+ mill volume v.s. the avg. daily volume of 35 mill–most stocks had small gains in the extended hours trading…JNUG finally made a big move up over 11%–silver stocks were up 3 to 5 %. Now we just wait and see what tomorrow brings.
Buygold @ 20:21
You think that trade might drive up demand for gold just a little … a little bigly!
Richard 640
I’m open to any and all opinions. We all have them but, in general, none of them help us to trade. The Fed’s action today was really a nothingburger, imho. Everybody and his uncle expected a 1/4 point hike and that is exactly what we got. Such a small rate increase should not have affected the $Gold market much at all…really not plus or minus.
The fix is in!
I bought 100oz silver bar this week and two close puts on the Russell 2000.I had to get a good down move today to have a chance. Bonds, equities and gold all up today. I had both ends covered and the market chose the middle.
rno
Samb=I got this from ZH readers:
The standard answer is that rate hikes make the dollar stronger and are a head wind for the dollar price of gold.
Gold rose from $35 to $197.50 between 1970 and the end of 1974, an increase of more than four times. During that period, the Bank of England’s base rate rose from 5% to 13%. The Fed’s discount rate was 4.5% in 1972 and rose to 8% in August 1974. So, a rising gold price was accompanied by a rising interest rate, contradicting the conventional wisdom of today. Gold went on to hit a peak price of $850 at the afternoon fix of 21 January 1980, when the Fed’s discount rate was at an elevated 12%.
The current belief that rising interest rates are bad for gold was disproved by those events. The reason gold rose had little to do with interest rates, and everything to do with accelerating price inflation.
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The moment when the majority of folks believe the market cannot correct is precisely when it will. Those who believe the central banks are all powerful will be sadly mistaken to have worshiped such false idols..
Love,
The Black Swan
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Rally Program #1 run today. No matter what the FRB does, it will be “good” for the market. If you want to know why, simply review the liabilities of our public pension system.
Pensions are severely underfunded after a decade of 0% interest rates. The saving grace has been this engineered bull market. Poor stock performance as a result of a recession would be a disaster. Remember, pension fund success depends on 8% returns per year, FOREVER. A never ending bull market is a requirement, not an option left to free market forces.
And don’t forget that over $2 Trillion in taxes are due by Baby Boomers on their 401K’s. Uncle Sam can’t collect what he needs if the market crashes.
Our financial system simply cannot withstand another downturn. So there won’t be one.
Why else do you think bad news is always “shrugged off” or turned into something “good”.
The stock market is just another Federal Program. Think of it as a Social Security fund for the rich.
Maddog – agree
The rig makes things nearly impossible to figure.
Also agree bigly that the next couple of days are crucial for pm’s if we’re going to make some kind of a bottom here.
I was a little surprised that we didn’t get hit harder into the close. 1% rule for gold was clearly in force though.
Samb R640
Rates are under full Rig control…..which I never thought we wud see…
Tdy the PM’s misbehaved….the next few days will be the big tell imho, as for once shares led.
Buygold
Ya know, in the 30+ years I’ve been watching markets I never knew rising rates were good for the SM.
U ain’t wrong…it’s the Rig that has made a mockery of all previous experience/knowledge….
Have to say nice to see shares lead…..but nervous of any real bottom…but that may be due to non stop p&l beatings.
samb – maybe the backstory
is that they know rates can’t rise above a certain level without busting the interest on the $20 Trillion in debt. So they buy bonds to keep real rates down?
Seems like we’ve seen this happen a few times after they’ve raised rates, except without gold going higher.
Tomorrow is the real test. We either build on the gains today or get smacked right back down.
The Pilbara Gold Rush Nuggets Conundrum
http://www.miningandmoney.com/
Sweet day for the good guys! 🙂
Richard 640
Makes no sense to me: It was anticipated that the Fed would increase by 1/4 point…which is just what they did. So, this rate increase should have been priced into the markets. Instead $gold blasts upward as if the Fed did not increase the interest rate. There has to be a backstory in here…somewhere.
More perversity=how does a rate rise pop gold and cause the $ index to be down .661 ???
no wonder no one gets on board…
Buygold
Whoo Hoo! 
Farmboy-Buygold=I should probably take my $4k profit on this trade but I’ll probably take em home with me
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SLV JAN19 $15 CALLS – 10:56:26
Bought to Open 259c @ $0.29 – Total: $7,699.25 |
I picked up these jewels this a.m. when silver was up 6 cents–the big money is made by catching a move, not day scalping…as I have written many times before, to catch a bottom in PMs is EXTREMELY difficult–did u see the gyrations in G&S after 2pm? It is sooooo easy to get shaken out…as u say, let’s see the close and what manana brings…the gold mkt is so perverse…
I Just Got Back Here, Left Early This Morning
I see the PMs liked what Janet Yellin said. What ever it was. She’s on CNBC blabbing or complaining about not enough inflation. Huh??
Those idiots running the economy are lame, dumb as a stump. Food and shelter and fuel is higher. Stocks are higher. Medical insurance higher.
They SAY they want the Dollar to lose value. Do you believe that? According to what they say, they want our purchasing media to LOSE MORE value?? They REFUSE to say minimum wage is TOO low for this fake system, and its holding down all the other skilled labor values.
Richard640 @ 12:25 That Was Close !
I was just about to take my Kbar, bust open a few cans of Campbell’s Cream of Chicken soup, split open the feather pillow and dose myself with feathers before throwing self into Floridagold’s Gator pond. Last couple of weeks has been brutal for the trading account. Today was some much needed relief! Phew! 🙂
Scariest hour of the day
would sure like to have seen the bottom for the year.
Need follow thru tomorrow if this sticks
Silver should have NEVER went to $15
So I call it just another scam, out in the open for all to witness
So far Ipso was right
Yellen speaking now, let’s see how it finishes
Well R640
If I’m actually right about anything, it will be the first time in a very long time.
I don’t trust this move in the shares. I guess we’ll know in about an hour.