Stocks and Precious Metals Charts – Fat Fingers

The ‘fat finger’ of fairly raw and obvious market manipulation hit gold in the early hours.
No one dumps that many contracts against a much thinner bid side without intent. We have exposed that here many times before.
There are those who are greatly exercised by the consequences of a system gone corrupt when it affects them.

But they too often say nothing, or even nod approvingly according to some ideological formulation, when that same corrupt system preys on the weak and vulnerable.

This post was published at Jesses Crossroads Cafe on 26 JUNE 2017.

Central Banks Buying Stocks Have Rigged US Stock Market Beyond Recovery

Central banks buying stocks are effectively nationalizing US corporations just to maintain the illusion that their ‘recovery’ plan is working because they have become the banks that are too big to fail. At first, their novel entry into the stock market was only intended to rescue imperiled corporations, such as General Motors during the first plunge into the Great Recession, but recently their efforts have shifted to propping up the entire stock market via major purchases of the most healthy companies on the market.
Brian Rich, writing for Forbes, describes the economic illusion created by central banks buying stocks during a time of presidential prosecution:
The chaos and dysfunction message is loud, but markets aren’t hearing it. The real story is very different. Stocks continue to surge; stock market volatility continues to sit at ten – year (pre – crisis) lows. The interest rate market is much higher than it was before the election, but now quiet and stable. Gold, the fear – of – the – unknown trade, is relatively quiet. This all looks very much like a world that believes a real economic expansion is underway, and that a long – term sustainable global economic recovery has supplanted the shaky post-crisis (central bank – driven) recovery that was teetering back toward recession.
In other words, political chaos in the regime is not denting the stock market, because central banks buying stocks are eliminating volatility. Indeed, if you were to gauge the economy at this point by the US stock market, everything must be grand because the Trump Rally has been one of our most exuberant stock rallies.
According to Rich, all of that is a central-bank-created slight of hand intended to distract you from what is happening in politics and throughout the macro economy:

This post was published at GoldSeek on 26 June 2017.

5 Things We’ve Learned Since China Entered the World Money Basket

Beginning in October of last year, China’s renminbi was added to the International Monetary Fund’s currency basket known as the Special Drawing Rights, or SDR.
The IMF, founded after Bretton Woods, established the SDR to be its own international reserve asset – what many have identified as world money.
Prior to Chinese inclusion, the elite currency basket was calculated with the U. S dollar, Euro, Japanese yen and British pound sterling. While China joining the SDR may have been largely status-driven at the time, the yuan and the Chinese economy have become open to heightened concern.
Significant worries over debt, wasted investments and threats of sweeping deflation left macroeconomists seeing a Chinese financial crisis on the horizon. Financial commentators ranging from hedge fund manager Kyle Bass to economist Jim Rickards highlight that the Chinese economy is on a dangerous course.
So what does that mean for China and its inclusion with the SDR’s world money basket?
Here’s five things we’ve learned from the Chinese entrance into world money:
1. October 2017 is Crucial
This October, the 19th National Congress of the Communist Party of China will be held. Thousands of lawmakers will gather in Beijing for the Congress. The Chinese Communist Party (CCP) does hold ultimate power, but certain influencers are beginning to rise.

This post was published at Wall Street Examiner on June 26, 2017.

Seattle Min Wage Hikes Crushing The Poor: 6,700 Jobs Lost, Annual Wages Down $1,500 – UofW Study

Just last week we noted that McDonalds launched plans to replace 2,500 human cashiers with digital kiosks like the ones below (see: McDonalds Is Replacing 2,500 Human Cashiers With Digital Kiosks: Here Is Its Math):

Of course, no matter how much anecdotal and/or hard evidence is presented to liberals on the negative consequences on higher minimum wages they simply can’t be convinced it’s a bad idea. Somehow, the basic economic concept that raising the price of good (i.e. wages) would somehow destroy demand (i.e. employment levels) for that good just does not compute in the minds of progressives.
Never the less, below is yet another study from economists at the University of Washington that reveals some fairly startling takeaways about Seattle’s minimum wage. Per the chart below, minimum wages in Seattle increased from $11 in 2015 to $13 in 2016 and $15 in 2017 for large employers.

This post was published at Zero Hedge on Jun 26, 2017.

Senate GOP Releases Revised Healthcare Bill

Senate Republicans, led by Mitch McConnell, have just released ‘modest’ revisions to the “draft” healthcare bill that was dropped last week. The only substantive change appears to be the addition of a “waiting period” on those who allowed their coverage to lapse for a period of 63 days or more during the prior coverage year.
“Starting in 2019, individuals who had a break in continuous insurance coverage for 63 days or more in the prior year will be subject to a six month waiting period before coverage begins. Consumers will not have to pay premiums during the six month period.” Here is a summary of the changes:

This post was published at Zero Hedge on Jun 26, 2017.

JUNE 26/BANKERS SUPPLY $2 BILLION IN PAPER GOLD SHORT AT 4 AM THIS MORNING; THEY ALSO SUPPLY 27.5 MILLION OZ OF SILVER SHORT IN ORDER TO RAID PRIOR TO OPTIONS EXPIRY O THE COMEX/TWO ITALIAN BANKS…

GOLD: $1246.30 DOWN $9.90
Silver: $16.56 DOWN 7 cent(s)
Closing access prices:
Gold $1244.00
silver: $16.59
SHANGHAI GOLD FIX: FIRST FIX 10 15 PM EST (2:15 SHANGHAI LOCAL TIME)
SECOND FIX: 2:15 AM EST (6:15 SHANGHAI LOCAL TIME)
SHANGHAI FIRST GOLD FIX: $1263.54 DOLLARS PER OZ
NY PRICE OF GOLD AT EXACT SAME TIME: $1254.45
PREMIUM FIRST FIX: $9.09
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
SECOND SHANGHAI GOLD FIX: $1263.54
NY GOLD PRICE AT THE EXACT SAME TIME: $1254.50
Premium of Shanghai 2nd fix/NY:$9.04
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
LONDON FIRST GOLD FIX: 5:30 am est $1240.85
NY PRICING AT THE EXACT SAME TIME: $1241.85
LONDON SECOND GOLD FIX 10 AM: $1245.25
NY PRICING AT THE EXACT SAME TIME. $1244.25
For comex gold:
JUNE/
NOTICES FILINGS TODAY FOR APRIL CONTRACT MONTH: 103 NOTICE(S) FOR 10300 OZ.
TOTAL NOTICES SO FAR: 2773 FOR 277,300 OZ (8.625 TONNES)
For silver:
JUNE
0 NOTICES FILED TODAY FOR
nil OZ/
Total number of notices filed so far this month: 991 for 4,905,000 oz
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
END
Over at the comex, the amount standing for the silver metal again rose in similar fashion to what we witnessed last month and also in April. It is up for the 18th consecutive trading day. We certainly have a determined entity trying to get its hands on whatever silver is available.
We have now officially entered options expiry week:
comex options expiry TOMORROW: Tuesday June 27
London options expiry: Friday June 30
first day notice Friday June 30
It is going to be interesting to see the open interest for silver tomorrow. The volumes today was astronomically high and the crooks had trouble witnessing silver leaves falling from the silver tree.

This post was published at Harvey Organ Blog on June 26, 2017.

Why the Silver Price Is Set to Rebound 33% from Recent Lows

As much as last week’s silver price story was all about the Federal Reserve, it seems the rate hike’s boost to the U. S. dollar may be starting to fade. The greenback fell for three straight sessions last week, dropping from 97.75 on Tuesday, June 20, to 97.30 on Friday, June 23.
That doesn’t mean the dollar’s near-term strength is over, but as I also pointed out in my last gold update, the dollar’s upside could be limited.
New York Fed President William Dudley admitted just days ago that U. S. inflation was low. It reached 1.9% in May, below market expectations of 2% and below April’s 2.2%. Despite lower-than-expected inflation, Dudley indicated the Fed could plan to keep steadily hiking rates. In turn, the dollar could weaken, supporting silver prices in 2017.
Like gold, silver last peaked at $17.71 on June 6, just as the dollar was bottoming. But the metal’s action over this past week is starting to look like it has also bottomed out. This has me thinking the price of silver has much more room to run higher this year. In fact, it could gain as much as 33% by the end of 2017.

This post was published at Wall Street Examiner on June 26, 2017.

The 3 Reasons Why Goldman Just Turned Bullish On Gold

Following this morning’s flash crash in gold, in which a “fat finger” – usually a euphemism for any trade that can not be logically explained yet one which reprices a given asset class substantially lower as happened with gold – suddenly sold $2.2 billion worth of gold in under a minute, taking out the entire bidside stack, we were expecting banks to immediately come out with bearish reports on gold, piggybacking on the latest central bank-facilitiated smackdown, and allegedly allowing their prop desks to load up on the yellow metal on the cheap.
We were surprised, however, when moments ago Goldman came out with a report explaining why the bank is now bullish on gold, Further, in the note from Goldman’s x-asset strategist, the bank laid out three specific reasons why gold may trade well above the bank’s commodity team year-end target of $1,250.
This is what Goldman said moments ago:

This post was published at Zero Hedge on Jun 26, 2017.

Gold And Gold Stocks Nearing a Big Move

Gold and especially gold mining stocks rebounded on Wednesday and trended higher into the weekend. This is giving some investors renewed hopes that the bull market that began roughly 18 months ago is about to reassert itself. We cannot know for sure yet but what we can say is precious metals are nearing a big move. Gold and gold stocks have traded in tight ranges which will compress further while volatility indicators approach multi-year lows. This is the setup for a break and then a powerful move with increasing momentum and volatility.
First let’s take a look at Gold. Its weekly bar chart is shown (going back 10 years) with two volatility indicators at the bottom. One is the GVZ contract and one is the average true range (ATR) indicator. The ATR indicator is at a 10-year low while GVZ is near an 8-year low. Gold has tested major resistance ($1300) twice and failed both times. If Gold loses its 2017 uptrend (support is around $1230) then it is susceptible to an accelerated decline with increasing volatility and momentum. On the other hand, if Gold could bust through $1300 and then consolidate around $1350, it could setup that anticipated breakout through $1350-$1375.

This post was published at GoldSeek on 26 June 2017.

Even The Fed’s Indicators Just Collapsed, This Is Not Good – Episode 1316a

The following video was published by X22Report on Jun 26, 2017
Because of austerity Greece is feeling the pain of a garbage problem, the workers have gone on strike and want the government to give them full employment, meanwhile the garbage is piling up. Out of nowhere around 4am thousands of contracts were dumped to bring the gold and silver price down. The automobile perfect storm is on the horizon. Durable goods has imploded on itself. The BIS is warning that we will be entering a recession soon and they are prepared to shift the blame. Chicago’s Fed economic indicator has imploded pointing to a major disaster.

The Role of Gold in Your Portfolio

Gold is the most misunderstood asset class in the financial world.
I remember when I first understood this and how enlightened I felt when I realized the true value of gold in one’s possession. I was 23 years old.
Because I was asked to speak at multiple conferences lately, I decided the time was right to explain the true nature and importance of gold in one’s portfolio, a concept that most modern investors simply do not understand or grasp.
Based on the responses I received after delivering this talk, it was evident the information I shared definitely struck a chord with those in attendance.
The information presented below is the content of my talk at those conferences.
The first slide in my power point presentation was a quote.
Gold is the currency of monarchs,
Silver is the currency of the educated,
Barter is the currency of the working class,
And Debt is the currency of slaves

This post was published at GoldSeek on June, 2017.

“Tick, Tick, Tick” Comey Ally Scrambles To Explain Why “Next Trump Bombshell” Didn’t Arrive Today

As we noted late last week, Benjamin Wittes, the Brookings Institution senior fellow and noted ally of former FBI Director James Comey, took to twitter to claim that another ‘bombshell’ story, presumably related to the multiple investigations into whether the Trump camp colluded with the Russians, was in the works. However, unlike previous warnings from Wittes, this one contained a caveat: the ‘fuse’ on the story is of an uncertain length, and that the next salvo could arrive as soon as Monday.
But with no major bombshell forthcoming, Wittes returned to Twitter Monday to offer a few clarifications.
3 things:
1) Not all ticks are related to Comey.
2) Fuse length remains uncertain.
3) Interesting preemptive defense of collusion happening.
— Benjamin Wittes (@benjaminwittes) June 26, 2017

This post was published at Zero Hedge on Jun 26, 2017.

Gold and Silver Market Morning: June 26 2017 – Gold knocked back to $1,240 early after London’s opening!

Gold Today – New York closed at $1,255.90 Friday after closing at $1,249.40 Thursday. London opened at $1,245.00 today.
Overall the dollar was slightly weaker against global currencies, early today. Before London’s opening:
– The $: was weaker at $1.1199 after Friday’s $1.1145: 1.
– The Dollar index was weaker at 97.25 after Friday’s 97.36.
– The Yen was weaker at 111.49 after Friday’s 111.21:$1.
– The Yuan was weaker at 6.8427 after Friday’s 6.8374: $1.
– The Pound Sterling was stronger at $1.2751 after Friday’s $1.2732: 1.
Yuan Gold Fix
Shanghai is leading the way up again as New York closed $2.60 lower than Shanghai’s close on Friday. This morning Shanghai started the week nearly $4 higher than New York’s Friday close as the Yuan weakened against a weakening dollar. We note that the P. B. of C. has stated it wants to trade against a basket of currencies not just the dollar but today while other currencies are stronger against the dollar the Yuan is weaker. We do not draw off conclusions from daily changes, but realize that a pattern over a period establishes a currency’s behaviour.
The week’s tone in Shanghai continued Friday’s positive tone as the gold price confirmed its turnaround from the slipping pattern of the week before Friday. But when London opened it quickly fell $10 to $1,245 quickly.

This post was published at GoldSeek on 26 June 2017.

How Much Longer Can Junk Bonds Ignore Tumbling Oil? UBS Has The Answer

One month ago, Goldman spotted a curious divergence in the energy sector: whereas in 2015 and 2016, the energy-linked asset class that had the highest beta to crude and was the most impacted as a result of the plunge in oil prices, was debt and specifically junk bonds while equities were relatively resilient to crashing crude prices, in 2017 this relationship had flipped, and – as of mid-May – despite the latest tumble in oil prices, HY Energy credits had returned 2.3% vs. 3.3% for the broader HY index, while Energy equities were down a whopping 9.6%.
And while Goldman made some educated guesses for this abrupt shift in security sentiment, there still is no accepted widely reason for this striking divergence.
One month later, UBS’credit analyst Matthew Mish picked up where Goldman left off, and in a note “Oil bear market: is corporate credit mispriced?” finds that the answer is mostly yes. Just like Goldman, Mish looks at the energy market in 2015 vs. today to answer the key question: “How has US energy changed?” Below we summarize several of his key thoughts:

This post was published at Zero Hedge on Jun 26, 2017.

A Crash Is Coming, But in Gold We Trust (Audio)

Economist and investor Ronald-Peter Stferle is bullish on gold. So much so that he’s authored a 160-page report titled ‘In Gold We Trust.’
Stferle recently appeared on Palisade Radio to talk about the current state of the economy. He said he thinks recession fears coming up within the next couple of months will be the big trigger and the big catalyst for gold.
I think that this complacency we’re seeing in markets, this will probably lead to a major crisis, and this will probably make 2008 look like a kindergarten party. In this environment, it just makes sense to hold portfolio insurance in the name of gold.’


This post was published at Schiffgold on JUNE 26, 2017.

Italy’s newest bank bailout cost as much as its annual defense budget

Two more Italian banks failed over the weekend – Banco Popolare di Vicenza and Veneto Banca.
(In other news, the sky is blue.)
The Italian Prime Minister himself stated that depositors’ funds were at risk, so the government stepped in with a bailout and guarantee package that could cost taxpayers as much as 17 billion euros.
That’s a lot of money in Italy – around 1% of GDP. In fact it’s basically as much as the 17.1 billion euros they spent on national defense last year (according to an estimate by Italian think tank IAI).
You don’t have to have a PhD in economics to figure out that NO government can afford to spend its entire defense budget every time a couple of medium-sized banks need a bailout.
That goes especially for Italy, whose public debt level is already 132% of GDP… and rising. They simply don’t have the money.
Moreover, the European Union actually has a series of new rules collectively known as the ‘Bank Recovery and Resolution Directive’ which is supposed to prevent failing banks from being bailed out with taxpayer funds.
Here’s the thing – Italy has LOTS of banks that are on the ropes.

This post was published at Sovereign Man on June 26, 2017.

Traders Scramble To “Explain” Sudden Nasdaq Swoon

After surging in early trading, the Nasdasq – together with various cryptocurrencies – suddenly slumped and dropped as much as 1% from its intraday highs two hours into trading. That’s what traders could agree with; where they clearly disagreed, was on the reason for the swoon with everything from the velocity of last week’s rally, this morning’s economic data and the Supreme Court’s decision to hear arguments on the Trump administration’s travel ban and being cited according to Bloomberg.
In other words, everyone blissfully rode the momentum on the way up, and now it’s time to come up with the most convincing story why there are more sellers than buyers.

This post was published at Zero Hedge on Jun 26, 2017.