A reader from Wales castigated me -- justly -- for omitting the Welsh from the list of fractious folks in the UK. Worse yet, they all voted to leave the EU, while the Scots voted to stay. I repent in dust and ashes and as penance will sing "Men of Harlech" six times. "Cambria will not yield!"
Markets were roiled by the FBI commissar Comey's announcement that 11 days after he had put Hellery under suspicion of high crimes & misdemeanors again, she hadn't done anything wrong after all. FBI must have cannibalized every temp employment agency on the east coast to hire enough people to read all those emails in 8 days. Amazing.
Clearly beneath the clalm surface of these muddy waters the barracudas are tearing & eating each other, the pro-Hellery faction against the anti-Hellery faction. Kid yourself not, her legal troubles have not ended. And in spite of all the news & rumors of election fraud, I still expect Trump to win.
I curled my lips in ironic & scornful (yes, I succumb to scorn when provoked) laughter when the stock market and dollar rose on the news that Hellery would not be arrested & jailed this week. What are these frantic buyers missing? The economic cake is already baked. Central banks have suppressed interest rates for 36 years, and for the last 8 years jettisoned every trace of common sense with QE, ZIRP, & NIRP (burp!). Central banks have reached the limits of their existence and the world's economy is choking on them. Whether Hellery or Trump wins, these problems will remain. That means stocks will decline for a long time while silver & gold will keep on rising.
Course I don't know bacon from fat meat. I'm jes' a natural durn fool from Tennessee. I don't know a security clearance from a valve clearance, & ain't NOBODY lining up to pay me millions of bucks for influence. Closest I ever got to influence was one time I got the influenza.
Stock indices gainsayed each other today. S&P500 rose to pierce -- barely -- its 20 day moving average. Chart's here, http://schrts.co/vtdPMb
On the other hand the Dow rose through its 20 & 50 DMA, and the downtrend line running hand in hand with the 50 DMA. Chart: http://schrts.co/Q6KUW0 That might mark the limit of the move. Whoops, almost forgot: Dow rose 371.32 (2.08%) to 18,259.60 while the S&P500 rose 46.34 or 2.22% to 2,131.52.
Bottom line: countertrend rally. These same gnat brains will sell just as hard tomorrow if Trump wins. Either way, stocks are locked in an intermediate downtrend.
US dollar index also staged a countertrend rally on the cockamamie notion that Hellery the big-spending socialist would be better for the dollar than Trump, the small-spending socialist. Chart's here http://schrts.co/OkJ5UT
As with stocks, there's no sign yet that the dollar has changed its trend to skyward.
Gold took it on the chin, losing $25 (1.9%) to close at $1,278.30 on Comex. Silver fell not as much, only 21.8¢ or 1.2% to 1812.4¢.
How badly was gold wounded? Nothing a band aid couldn't fix. Gold Price fell nearly to its 200 DMA (1,276.70) but remained above the trend line climbing out of October's lows. See for yourself, http://schrts.co/pbxEDM
Silver's fall stopped cold at 1800¢, suggesting loads of buyers are happy to acquire silver there. Chart's right here, http://schrts.co/o96FnV
Silver didn't break its uptrend line, either.. Didn't get near the 200 DMA (1749¢).
All this was expected since a cyclical low was due this week. Now you have seen it. Tomorrow will be quiet, until it becomes apparent which juvenile delinquent will win. Don't miss this: whatever the election's immediate effect, long term it won't change much, except the interior decorator at the White House.
One more Susan story, about how we met:
I had an apartment with two college buddies & had heard about Susan, who was running with the same crowd of folks I ran with. I had broken up with a girl I had dated for three or four years, and was finished with her forever.
We had a party at our apartment, and the first time I ever saw Susan, she was highstepping with those long legs across people sitting on the floor. She was wearing white pants and a white sweater with navy blue zig-zag stripes about 2 inches wide. First time I saw her I thought, "THAT is what I have been looking for! THAT is what I have to have."
That was late in April. At first she refused to go out with me because she thought I was engaged. I squelched that misconception speedily and we had our first date May 5 or May 6, 1967. At 20 years old, we decided to get married that night, which I'm sure horrified & terrified Susan's wonderful mother. For reasons still not clear to me, her father and mother agreed. We got married 16 December 1967 & I never looked back. I know when I've hit the jackpot.
Argentum et aurum comparanda sunt —
Silver and gold must be bought.
Silver and gold must be bought.
— Franklin Sanders, The Moneychanger
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