2014 Resistance Holding Gold Stocks after Brexit

What a last 24 hours for markets! At one point Gold was up $100/oz, S&P futures were limit down and the British Pound was down over 8%! The volatility has subsided, perhaps temporarily and Gold settled around $1320/oz with Silver settling below key resistance at $18. The miners predictably gapped up but the strength was sold. As miners remain below 2014 resistance we expect Gold to retest $1300/oz before moving higher.
The chart below plots the weekly candlestick charts of GDXJ (top) and GDX. The miners gained 5% to 6% on the week thanks to Brexit but note that miners sold off today after testing 2014 resistance. GDXJ, which has resistance at $43-$45 reached $43.76 today before declining and GDX, which has resistance at $27-$28, reached $27.71 before declining.

This post was published at GoldSeek on Sunday, 26 June 2016.

“It’s Scary, And I’ve Never Seen Anything Like It” – Where Markets Are The Morning After

For those of you who are just waking up, first of all, congratulations. Here is what you missed.
European, Asian stocks and S&P futures plummet, as U. K. votes to leave European Union membership. FX carry trades everywhere go haywire, with the Dollar and Yen spiking while the Cable overnight plunged to 30 year lows and at last check was trading just around 1.37, down 1,300 pips from yesterday’s highs. A modest rebound was experienced when first the Bank of England and shortly after all other central banks promised to pump virtually unlimited liquidity into the financial system. Ironically, all of this takes place a day after Fed’s stress tests showing all 33 banks exceed minimum requirements – we may find out just how “unstressed” they are as soon as today.
For those who are pressed for time, the following quote from James Butterfill, head of research and investments at ETF Securities, summarized it best: “It’s scary, and I’ve never seen anything like it. We’re going to see outflows from basically any kind of cyclical asset. A lot of people were caught out, and many investors will lose a lot of money.’

This post was published at Zero Hedge on Jun 24, 2016.

ELITES AND MARKETS ROILED AS BRITAIN RIDS ITSELF OF THE PARASITES…

originally published June 24th, 2016 in the Various Reports Sector
Woke up to stunning news this morning – sorry, I don’t stay up watching election results – that Britain has voted by a narrow but clear majority to leave the EU. I had feared that the British electorate would be cowed into submission by the barrage of pro-Europe propaganda and scaremongering, like the Scots were at the time of the Scottish independence referendum, but they weren’t, or at least sufficient of them weren’t to assure a positive result. Nevertheless, 48% still voted to stay in, which shows you how many gullible idiots there are out there – they are either that or in some way they are benefitting from the EU, by getting handouts etc.
The following election result map is interesting, as it reveals that the whole of Scotland and Northern Ireland voted to stay in Europe – this shows that they are probably benefitting from EU handouts. Actually, in both the Scottish referendum a couple of years ago, and in the EU vote last night the Scots showed about as much force as Longshanks’ son, and none of the valor of William Wallace, as those of you familiar with the film Braveheart will understand.

This post was published at Clive Maund on June 24th, 2016.

NY COUPLE LOSES $25K BECAUSE THEIR BANK DOESN’T KEEP RECORDS

Other than politicians and the media, there is no other force in our society that is hated more and trusted less than the big banks. Between the bailouts that followed the crash of 2008, and the wealth confiscations that occurred in Cyprus a few years later, it’s become abundantly clear to everyone that the banks are run by criminals, and you can’t trust them to hold onto your savings.
And if you ever needed another reason to be cautious about putting all of your savings into a bank, you should listen to what happened to Anna and Salvatore Russo. The couple opened a savings account with Chase Bank in 2002, and deposited $30,000, which was reduced to $25,000 after they made a withdrawal shortly thereafter. But with the exception of that withdrawal, they hadn’t touched their bank account for years, in the hopes that they would collect interest on the money.

This post was published at The Daily Sheeple on JUNE 25, 2016.

Durable Goods Orders Crater In May – Longest Non-Recessionary Slump In American History

Durable Goods Orders cratered 2.2% in May, drastically below -0.5% expectations – the worst since Feb. The entire data series disappointed with unexpected declines in Durables Ex-Transports and non-defense orders and shipments. However this is now the 17th month in a row of YoY Core Durable Goods declines, something that has never happened without a US economic recession being present.

This post was published at Zero Hedge on Jun 24, 2016.

Britain’s vote for freedom proves power is with the people

June 2016 – GOING GLOBAL – As the Brexit results poured in, I caught myself humming a tune from Broadway’s ‘Hamilton.’ The song follows the decisive Battle of Yorktown in 1781, after which the Redcoats surrender and America is free. It’s called a drinking song, and there’s not much to it except these words: ‘The world turned upside down.’ It certainly has. The world is also coming full circle because now it’s the Brits who are free. It took them a while, but they finally had their own Tea Party and their own revolution. I salute them for their courage. And I raise a glass to freedom (that’s ‘Hamilton,’ too).
Revolutions are a leap into the unknown and require the right mix of outrage, determination and leadership. They are testament to the ethos of an entire country and culture when they succeed without a shot being fired. That’s the beauty of Brexit, and of grand old England. The people spoke, they were heard, and the wheel of history is turning. Let’s get on with it. It took a revolution because the leaders of both of Britain’s major political parties united in opposition to change, with the pooh-bahs and grandees trying to scare voters into sticking with the status quo. Naturally, the establishment media lectured the rubes on what was good for them.

This post was published at UtopiatheCollapse on June 26, 2016.

Brexit At Tiffany’s: EU Banks Fall Back To February Levels (Not End Of The World)

I made the mistake of reading the Washington Post this morning. To the WaPo, Brexit is like the film ‘Armageddon’ with Bruce Willis and Ben Affleck.
Now, it is only the Saturday (in the USA) after Brexit. The media focused on global doom and gloom in yesterday’s market. And global markets did fall.
But let’s look at European banks. Here is the price reaction of the Euro Stoxx bank price index after the Brexit vote was announced. Yes, the bank price index fell from 102.87 to 84.28 Euros. But it didn’t fell to zero as some would have you believe.

This post was published at Wall Street Examiner on June 25, 2016.

“We Look For European Stocks To Make New Lows Over The Next Days” – JPM Reacts To The Post-Brexit World

All throughout the artificial short squeeze-driven, central bank-facilitated market rally since the February lows, JPM has been advising clients to sell into the rally. For those few who listened, congratulations. Of course most, who simply rode momentum higher and added, well – we can only hope you have enough in your margin account when the clerks come calling.
And with that said, this is what JPM’s Mislav Matejka happens next after the market’s initial reaction.
UK has voted to leave EU. This is an event which will have long-lasting adverse repercussions for the markets, especially for the Eurozone, in our view. Initial reaction is likely to be very negative given the rally seen over the past few days, and the resulting complacency which set in in the markets.

This post was published at Zero Hedge on Jun 24, 2016.

Central Banks in Crisis Watch Mode

Our sources are saying that the central banks have come to an accord to cooperate in an effort to support financial stability in the wake of Britain’s vote to leave the European Union. This is akin to the Plaza accord of 1985. Central bankers urgently gathered at the Bank of International Settlements in Switzerland to discuss the implications of the BREXIT referendum. The central banks are endorsing a contingency of measures to be put in place by the Bank of England. While the central banks will carefully monitor market functioning and stability, they are clueless what to actually do other than try to prevent currencies from swinging wildly.

This post was published at Armstrong Economics on Jun 26, 2016.

Black Friday: Shocking Brexit Vote Result Causes The 9th Largest Stock Market Crash In U.S. History

Has the next Lehman Brothers moment arrived? Late Thursday night we learned that the British people had voted to leave the European Union, and this could be the ‘trigger event’ that unleashes great financial panic all over the planet. Of course stocks have already been crashing all over the globe over the past year, but up until now we had not seen the kind of stark fear that the crash of 2008 created following the collapse of Lehman Brothers. The British people are certainly to be congratulated for choosing to leave the tyrannical EU, and if I could have voted I would have voted to ‘leave’ as well. But just as I warned 10 days ago, choosing to leave will ‘throw the entire continent into a state of economic and financial chaos’. And ‘Black Friday’ was just the beginning – the pain from this event is going to continue to be felt for months to come.
The shocking outcome of the Brexit vote caught financial markets completely off guard, and the carnage that we witnessed on Friday was absolutely staggering…
-The Dow Jones Industrial Average plunged 610 points, and this represented the 9th largest one day stock market crash in the history of the Dow.
-The Nasdaq was hit even harder than the Dow. It declined 4.12 percent which was the biggest one day decline since 2011.

This post was published at The Economic Collapse Blog on June 24th, 2016.

Weekly Commentary: Majority Mad as Hell

‘In this unique exploration of the role of risk in our society, Peter Bernstein argues that the notion of bringing risk under control is one of the central ideas that distinguishes modern times from the distant past. Against the Gods chronicles the remarkable intellectual adventure that liberated humanity from oracles and soothsayers by means of the powerful tools of risk management that are available to us today.’
I found myself this week thinking deeply about the now classic (1998) ‘Against the Gods: The Remarkable Story of Risk.’ The notion that new sophisticated approaches to risk management had diminished overall system risk was integral to the 1990’s U. S. boom period. Repeated policymaker resuscitation ensured that over time this already phenomenal Bubble morphed into a global Bubble of epic proportions. And right up until the Lehman Brothers collapse the consensus view held that policymakers had things well under control. Recall that the VIX sank just weeks prior to the so-called ‘worst financial crisis since the Great Depression.’
It’s no coincidence that near systemic financial collapse was preceded by manic devotion to the wonders of contemporary risk management. Today, I see parallels between the Lehman failure and the UK people’s decision to leave the European Union. Until the Lehman collapse, the strong consensus view held firm that policymakers would not tolerate financial crisis or severe economic downturn. By late in the cycle, this momentous market misperception had been embedded in prices for Trillions of securities, certainly including MBS, ABS and GSE debt. Importantly, as excesses turned increasingly outrageous (i.e. 2006’s $1TN of subprime CDOs) unwavering faith in the power of policy measures ensured ongoing rapid Credit expansion.
Moreover, unabated Credit growth (and attendant economic expansion and asset inflation) coupled with confidence in policymaker control ensured that inexpensive market risk ‘insurance’ remained readily available. Going back to my initial CBBs, I took exception to the powerful interplay of securities-based finance, ‘activist’ monetary management and booming derivatives and market risk ‘insurance.’ The Fed’s interest-rate and liquidity backstops underpinned securities-based finance, ensuring resilient markets and economies. This safeguarded the supply of cheap market risk ‘insurance’ – protection that was fundamental to ongoing risk-taking throughout the markets and real economy.

This post was published at Wall Street Examiner on June 25, 2016.

Now The Loosers Want a 2nd Referendum To Overturn BREXIT

A petition has circulated gained they claim 1 million signatures to overturn BREXIT and hold a second referendum. Of course they will do a far better job at rigging this one if it goes through. Such people deserve what they petition for and should surrender the pound and the Queen. They have zero idea of what is coming from Brussels but this is playing into the hands of Cameron no doubt and the rest of the establishment. They assume government will survive. They are clueless that Brussels will collapse as we move forward.

This post was published at Armstrong Economics on Jun 25, 2016.

Brexit Blowback Hits Italian and Spanish Banks

Worst Day for Italian & Spanish stocks. Banks massacred. The prophets of Project Fear reaped what they’d sown, as financial carnage spread across global markets on news that a slim majority of British voters had done the unthinkable by drowning out the relentless doomsaying and voting to leave the European Union.
The pound sterling plunged 8% against the dollar, to $1.37, its lowest level in three decades. The euro fell 1.93%, in itself a huge one-day move for a major currency. UK stocks surrendered over 3% of their value. But that was nothing compared to the havoc unleashed in other European stock markets.
Germany’s DAX plummeted 7%; France’s CAC 40 over 8%. But even that pales compared to what happened in Spain and Italy: the IBEX 35 plummeted 12.3% and the FTSE MIB 12.5%. It was their worst day on record.
The UK economy may be in for a hellishly bumpy ride in the months and years ahead, but the fact that London’s FTSE 100 was Europe’s least worstperforming stock market on this day of all days suggests that Europe’s biggest financial risks probably lie elsewhere. And that is in euro land, in particular on its southern flank.

This post was published at Wolf Street on June 25, 2016.

Onward Toward Bullion Bank Collapse

The events of Friday not only speed the eventual collapse of the Bullion Bank Paper Derivative Pricing Scheme, they also highlight the fraud of this current system and shine light upon the utter desperation of these Banks to maintain it.
We’ve written about this countless times over the past six years. Here are just two recent examples:
In short, as a measure of controlling the paper prices of gold and silver, The Bullion Banks that operate on The Comex act as de facto market makers of the paper derivative, Comex futures contract. This gives them the nearly unlimited ability to simply conjure up new contracts from thin air whenever demand for these contracts exceeds available supply and, almost without exception, these Banks issue new contracts by taking the short side of the trade versus a Spec long buyer. Never do these Banks put up actual collateral of physical metal when issuing these paper derivative contracts. Instead, they simply take the risk that their “deep pockets” will allow them to outlast the Spec longs and, without the risk of having to make physical delivery, The Banks almost always win. Eventually, an event like the runup to the Brexit vote or all of the Fed Goon jawboning of May will spook The Specs into selling and this Spec selling is used by The Banks to buy back (cover) their ill-gotten naked shorts and lower total open interest back down. (If you’re confused by this, please click the second link listed above for a more detailed explanation of this process.)
How this influences price is simple. If the supply of the paper derivative futures contract was held constant on a daily basis, then price would have to rise or fall based upon simple supply/demand dynamics. When the amount of buyers exceeded sellers, price would have to rise to a point at which existing owners would be willing to sell. But this is NOT how the Comex futures market operates! Because the market-making Banks have the ability to create new contracts from whole cloth, they can instead flood the “market” with new supply whenever it’s necessary. This mutes potential upside moves by imparting fresh new supply for the Spec buyers to devour. Price DOES NOT have to rise to a new, natural equilibrium. Instead, price equilibrium is found where demand meets this new supply.

This post was published at TF Metals Report on Saturday, June 25, 2016.

The Week in Review: June 25, 2016

History was made this week as the United Kingdom voted to leave the European Union. By rejecting globalism and embracing self-determination, Brexit is an example of decentralization and devolution of state power, which is always worthy of celebration. Further, as Thorsten Polleit notes, the move made economic sense for Britain with the EU representing ‘a case par excellence illustrating the failure of interventionism.’ A post-Brexit world offers new opportunities for Britain, a chance for Britons to live a life not entirely regulated by bureaucrats in Brussels, and can serve as an example for secession movements both internationally and at home.

This post was published at Ludwig von Mises Institute on 06/24/2016.

Global Institutions May Be Susceptible To Hackers, SWIFT Remains Vulnerable

The world of central banking relies on transferring vast amounts of information along controlled and secure messaging lines, around 2 million per day between roughly 7,000 institutions. The system of connections to and from central banks in Asia, Russia, China, Africa, and the Americas is known as SWIFT (The Society for Worldwide Interbank Financial Telecommunication). SWIFT provides a means for sending messages between the parties that have access to it. Each party is responsible for providing security measures before accessing the SWIFT network.
On March 7, 2016 Reuters reported the central bank for Bangladesh stated it discovered unauthorized withdrawals from its account at the Federal Reserve Bank of New York (FRBNY). The amount of the unauthorized transfer has been reported to be USD $951 million. The World Bank database shows Bangladesh holds just shy of USD $28 billion in foreign exchange reserves on its books, an amount that has tripled since 2011.
Around the middle of April reports appeared which stated that roughly USD $81 million remained uncovered. It still remains uncovered as of this writing. What also remains uncovered is the truth of what happened. We have yet to learn if someone hacked into the SWIFT system from outside the Bangladesh central bank headquarters or if the unauthorized transaction was executed as an “inside job”. Sources speaking with Zero Hedge control cyber security operations for international companies have said it would appear the complexity of the steps necessary to execute a transaction across the SWIFT system would require knowledge from someone who regularly interacts with the SWIFT system.

This post was published at Zero Hedge on Jun 25, 2016.

750,000 Californians Past The Age Of 65 Are Still Working

Regular readers are well aware that residents are rushing out of California in droves for many reason, least of which is the high cost of living. For those older California residents that choose to stay however because they simply can’t uproot their lives and start “fresh” somewhere else, the reality is even more gruesome as they have no choice but to continue working into their retirement years. More than 740,000 Californians between the ages 65 and 74 are still employed or looking for work the Sacramento Bee reports, and the reasons are largely attributable to money.
As the Sacramento Bee reports, more than 740,000 California residents between ages 65 and 74 are employed or looking for work, roughly double the number from 15 years ago, according to a Sacramento Bee review of the latest census data.
Much of that growth reflects a swell of baby boomers entering retirement age. But the proportion of California seniors between ages 65 and 74 still working or looking for work also has risen, going from 20 percent in 2000 to 26 percent in 2014.
Californians are working longer for a number of reasons. Some do not have enough money to retire or are among a growing number of seniors living in poverty. Others are waiting to collect their full allotment of Social Security payments as the federal retirement age gradually rises from 65 to 67. Many are simply in good health and want to keep working as life spans increase.
The percent of Californians ages 65-69 who are still working or looking for work has increased dramatically since 1990, and still remains well over 30%. The percent of residents between 70-74 who are still working or looking for work has trended up since 1990 as well, although much more gradually, and remains just under 20%.

This post was published at Zero Hedge on Jun 25, 2016.

IS SILVER AFTER BITCOIN – The Next Chinese Momentum Play?

The roulette game all started in the fall of 2014, about 2 years after Chairman Xi Jinping came to power and became the General Secretary of the Communist Party of China.
Xi Jinping had campaigned for socialist economic reform, including a sweeping anti-corruption drive, cutting excess production capacity, tightening of housing credit, and clamping down on gaming in Macau. Public feedback was initially positive. However, largely as a result of those policies, Beijing was facing an increasingly grim economic growth outlook which was the worst in more than two decades*. Manufacturing activity in China slowed along with the global economy and the construction sector stagnated.

This post was published at SRSrocco Report on June 25, 2016.

First the UK, then Scotland … then Texas?

That didn’t take long. Only hours after the final results came in for a British exit from the EU, political leaders in Scotland are talking about renewing their drive to secede from the United Kingdom.
Pointing to the fact that a large majority of Scots voted to remain in the EU, Scottish advocates for independence are now claiming (convincingly) that Scotland is leaving the EU against its will.
Many of us who advocated for Scottish secession in 2014 were, of course fine with Scottish secession at the time. And we’re still fine with it now. Scotland should be free to say good bye and got its own way.
Some opponents of Scottish exit, however, have claimed that Scotland is too small “to go it alone.” Defenders of Scottish independence call this the “too wee, too poor, too stupid” argument.
Even the most rudimentary analysis, however, shows that size is not an issue for Scotland. With an official GDP of approximately 245 billion, Scotland is not too much different from Ireland, Finland, and Denmark. It’s economy is much larger than that of Iceland (16.7 bln) and New Zealand (172 bln).
With a population of 5.3 million, this puts Scotland either similar to or larger than Denmark, Norway, Finland, New Zealand, and Ireland.

This post was published at Ludwig von Mises Institute on 06/24/2016.