SD Friday Wrap: Washington has put on quite the performance this week…
Last Saturday, President Trump was Tweeting about economic collapse:
Hard to believe, but if Nancy Pelosi had put our great Trade Deal with Mexico and Canada, USMCA, up for a vote long ago, our economy would be even better. If she doesn’t move quickly, it will collapse!
— Donald J. Trump (@realDonaldTrump) December 7, 2019
There’s a very specific reason that Tweet was sent out on Saturday.
Which is the exact opposite as to why this one was sent out at 09:35 a.m. EST on Thursday:
Getting VERY close to a BIG DEAL with China. They want it, and so do we!
— Donald J. Trump (@realDonaldTrump) December 12, 2019
You see, the markets were open when President Trump Tweeted that, but the markets were not open when he Tweeted about economic collapse.
Here’s the effect the ‘Getting VERY close’ Tweet had on gold & silver:
The opposite effect was true for the stock market.
In fact, all of the major indexes hit all-time record highs yesterday.
Twitter is about to become an even bigger deal for the “markets”, especially if the Dems want to bring down the markets to ruin President Trump’s chances for re-election.
How could this play out?
It could play out In a battle of the HFT Algos.
Consider the following:
Regardless, a simple question: What exactly got accomplished this week in regards to trade?
The House has said it plans to vote on USMCA next week, which is another way of saying so far all that got accomplished were promises from politicians.
Take then for what they’re worth.
As well as the fact that Pelosi’s got nothing but high praise for USMCA.
Which may be one of the reasons why it’s already out of the news cycle?
Which brings us to today’s Dog-N-Pony Show: The “Phase one trade deal”.
Today’s Dog-N-Pony Show was a little more fulfilling than that of USMCA, in part because we apparently have a phase one deal with China, although nothing is signed.
All we really have is a D.I.N.O. – a “deal in name only”.
And at best, the details of this deal are vague.
Which brings us to the third Dog-N-Pony Show, the Impeachment of President Trump.
What got accomplished?
Not the vote to Impeach or not to Impeach, that’s for sure (from CNN):
Washington fiddles while America burns.
Well done, public servants.
Because that Dog-N-Pony Show is more of the suspenseful variety.
And just before Christmas!
NOTE: THESE CHARTS WERE SET UP SOMETIME AROUND 12:30 P.M. EST ON FRIDAY, DECEMBER 13TH
Silver’s maintaining despite President Trump being so full of win:
Silver may not have been able to hold on to $17, but silver can see all of the nonsense in Washington for what it is: A Dog-N-Pony Show.
I just really, really wish we could get into “extremely oversold” territory.
Gold nearly re-took $1500 this week:
In fact, gold breached $1490 at 09:11 a.m. EST on Thursday morning, and gold remained above $1490 for six minutes.
The cartel simply couldn’t stand for a breach of $1500.
The gold-to-silver ratio is still telling investors which metal to purchase:
We’re about as good as it gets here for this once in a cycle opportunity.
Platinum looks interesting here:
I will be watching platinum next week for clues to see if we’re finally in the clear for a real rally, or whether this is once again a break-out fake-out.
Regardless, palladium is still doing its own thing:
Yesterday, we punched through $1900, and record highs again today.
Today’s record high stock market is brought to you by the letter “D”:
No, not “D” for “Dow”.
It’s “D” for “Donald”:
Record Stock Market & Jobs!
— Donald J. Trump (@realDonaldTrump) December 13, 2019
The letter “D” is also a proud sponsor of Jobs!
You’d think the VIX would have plunged today:
However, the VIX didn’t even plunge under 12, so if it were because of normal market forces, we could say the VIX didn’t plunge because traders and investors were already confident there would not be additional tariffs placed on China come Sunday.
That said, the situation could change between now and then.
Yield on the 10-Year Note is going to become problematic:
That’s definitely an uptrend for the short-term, just as the US budget deficit is exploding higher.
Amazingly, the dollar has strengthened today:
Is it too early to call that a dead-cat-bounce?
OK, “Hey Half Dollar, why did you say it’s amazing the dollar has strengthened today?”.
It has to do with the fact that today, President Trump Tweeted out that China has agreed to make “structural changes”, and since we’ve officially designated China as a “currency manipulator”, one must assume that means, in part, allowing the yuan to strengthen against the dollar, and while that didn’t happen today, one would assume with President Trump as vocal as he has been with his desire for a weaker dollar, traders and investors will start to “front-run” that trade.
Bottom line as we find ourselves here this beautiful December day, Friday the 13th?
On the surface, the MSM is painting the picture that progress is being made.
Of course, the lack of any specific details paints a different picture.
In my opinion, we’ve had a week long Dog-N-Pony Show.
A bunch of spectacle was all that it really was.
Which is why gold & silver remain bid.
Smart people understand this.
Nothing has changed.
But very soon?
– Half Dollar
About the Author
U.S. Army Iraq War Combat Veteran Paul “Half Dollar” Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart.