SD Midweek: To say it’s getting ridiculous out there is putting it lightly. Here’s an update…
The hammer is already coming in the pre-market action:
Yesterday North Korea fires a missile which demonstrated that they can now strike anywhere in the U.S. and the one thing that President Trump says besides “We’ll take care of it” is “that will teach Schumer & Pelosi not to dis our plans for a beefed-up military, tax cuts and a lifting of the debt ceiling”.
The missile launch, however, was not enough to halt the massive surge to new all-time highs:
And put in one massive candle on the daily:
Nor did the stirring of the thermo-nuclear war pot cause even an eyebrow of concern to raise, let alone “fear”:
The VIX barely put in a close above 10.
The bond market has been disconnected for years, but now it’s eyes are set on one thing only, December 13th:
As such, the yield on the 10-Year Note is still range-bound waiting on the Fed.
The dollar has seen a bounce over the last few days:
But this is hardly the sign of a reversal.
Silver has been hit hard over the last four days:
Notice how the range just gets tighter and tighter, especially over the last six days.
Silver is set to open below it’s 50-day moving average.
In November of 2015, silver fell for 15 days straight. That was very painful. However, it would be unwise to think the same thing will happen again this year because there is a new dynamic: Oil
Oil has been steadily rising and silver now needs to catch up to the price of oil:
The price of oil will act as a floor for silver because diesel is a massive input cost in all mining including silver, and the miners have been beat down for so long and and mining all of their high-grade (easy to get) silver, so there is now way they can make up a losing proposition on volume as the saying goes. The question is where is the floor in silver?
Open interest has fallen to around 195,000, and perhaps that is all the cartel can muster with this smash, so we shall see if the floor is where the price of silver is now, maybe down to the $16.50 area.
Since silver has been subjected to massive cartel price smashings, the GSR is creeping back up:
If any body has a threshold of 75 when making regular purchases of metal, meaning if it takes more than 75 ounces of silver to buy one ounce of gold, then a GSR near 77 is certainly favoring the white metal.
Gold has held up better than silver:
So far, gold has managed to stay above it’s 50-day moving average.
Platinum is looking good too:
On Monday we said we were looking for a close above $953 to signal a bullish trend change, and while we went over that price yesterday, we did not close above it. If platinum can stay above its 200-day (red dotted line), then it looks even like there is a better chance of putting in a close above the $953 very soon.
Palladium is not buying any of the price suppression:
Palladium has surged again to new highs.
When looking at the precious metals as a whole, it shows that the metals are moving up in price. When focusing in on silver, we see the absolute desperation of the cartel to keep the price capped.
They know its a losing battle. We know its a losing battle.
Finally, the chart of the day is brought to you by Bitcoin:
Parabolic just got parabolicer.
Look for more price smashes feeding off the weakness.
– Half Dollar