Friday Wrap: Gold was smashed on Friday as well. Both metals end the week down as the Dow and Bitcoin hit new all-time highs. Here’s the latest…
Just two days after silver put in the biggest intra-day move higher of the year, the cartel decided enough was enough, and they brought down the hammer:
The cartel was desperate to make sure the 50 and 200 day moving averages were not breached to the upside. Call it punishment for the golden cross a month ago.
On the weekly, things we have a loss on the week instead of a nice gain:
However, notice over the last two weeks how volume has been increasing in order to smash price lower. This is supported by the surge in open interest in silver, which over 200,000 contracts.
As exciting (Wednesday) and then as bad (today) as it was, the gold-to-silver ratio has come down a bit impressively:
This shows that silver is starting to outperform gold again, which is what we we want to see happening.
Gold fell on the week as well. Notice the constant monkey hammering on the 15 minute chart until the yellow metal finally submitted today:
The gold smash took place more than two hours after the Non-farm Payrolls report came out. Over $3.75 billion in notional gold was sold in a span of over nine minutes, before the second leg down and even more selling pressure came.
And so gold looks even worse on the weekly chart now (which is a good thing because we need silver to outperform which it did):
The lower-low has formed coming down from the low some four weeks ago. Granted, there was only one up week in the last eight, so it is debatable whether this could be technically called a “lower-low” since since there has been only one week up.
Regardless, the weekly gold chart really needs to find some relief.
Interestingly, when we look at the other two precious metals, we do not see the same despair. This could be a sign that the pain is over in gold in silver, or that the pain is about to begin in platinum and palladium, and if that’s the case, then get ready for even more pain in gold & silver.
Platinum has managed to put in a higher-low:
Had to draw the line thin because it is otherwise difficult to see, but sure enough, there’s the low some five weeks ago, and then there’s the low from last week, confirmed by the move up this week in the price of platinum.
Palladium is equally holding its own, and, in fact, has nearly put in a new high:
Palladium has been the performer of the year. Looking at the weekly chart above, palladium has actually been the performer of the last two years. Funny how palladium can get no love because of it’s affiliation with precious metals.
We know beauty when we see it, however, and that chart of palladium above is pure bull.
Copper has been holding above the 50-day after everybody has counted it out due to rampant Chinese speculators trading on margin:
However, we have been warning of this for weeks now, but we’ll say it again:
Get ready to pay more at the pump, just in time for Christmas.
In fact, on the weekly chart, crude oil is now at the highest it’s been since mid-June 2015:
Let’s look at some of the happenings this week. We have:
- Janet Yellen extension in the Jerome Powell nomination
- Plummeting wages and nearly a million people falling out of the labor force
- Tax cuts that must make it though the House and Senate
- Fed “holding” on wages
- North Korea nuclear threat picking up
- Terrorism in New York
- Hillary Clinton, the DNC, Russiagate and corrupt Hollywood blowing up
Yet despite all of this, well:
Uncertainty nowhere to be found.
Even if yields are falling again:
And the US dollar is rising to the what looks like a target of 96::
Sure, it’s drawn out, and sure, it’s ugly, but that inverse head-and-shoulders pattern seems to be holding up now that everything is awesome again today.
Today’s stock market bubble is brought to you by the iPhone X:
That one is near vertical over the last several days including the gap-up today.
But don’t take Apple’s word for it. Coming in with an honorable mention is the Dow:
And while still high, that downward slope in volume is something to take not of. Charging higher on lower volume can fizzle quick, and the results are not good. But then again, there’s always “The Fed Put” just until they let it expire.
As for this, well, we’ll let all those seasoned experts decide whether this is a bubble or not, even if it did hit a new record high today:
And just for good measure, let’s not forget this:
— Donald J. Trump (@realDonaldTrump) October 31, 2017
So to recap. We have:
- Stock market record high
- Bitcoin record high
- Home prices record high
- Gold & silver just sitting there doing nothing
Question: Are going and silver just going to sit there in price forever as the stock market, Bitcoin and real estate get more and more expensive for the average person to consider an an “investment”?
Sooner or later, when the party turns into a complete and total barf-o-rama, the revelers who aren’t plastered out of their minds will notice gold & silver just sitting there, and then the dancing begins.