24 March 2017

Stocks and Precious Metals Charts - Whack-a-Doodles Interruptus

"Let us feel what we really are— sinners attempting great things. Let us simply obey God's will, whatever may come. He can turn all things to our eternal good. Easter day is preceded by the forty days of Lent, to show us that they only who sow in tears shall reap in joy."

J. H. Newman

In case you have not been following the news, the Republican leadership decided to 'pull' their replacement bill for Obamacare at the last minute, ahead of the scheduled vote at 3:30 PM EDT.

The markets were gyrating a bit around this decision, not because there is any concern about the American people and those who would be affected by their higher premiums and loss of coverage through this 'reform.'

No, the big concern is that tax cuts for the wealthy and corporations will be jeopardized now because the 'savings' that would have been projected for the government by screwing the 99% will not be available for those who the Republicans really care about— wealthy donors.

So while we may have another go at it next week, there is some indications that the Trump administration and the GOP will do whatever they can to weaken it, and hope to come back and take us a step backwards in caring for our own and fostering a more general prosperity for all, despite the rhetoric about making America 'great again.'

Pelosi and the Democrats were quick to claim victory, but that was nonsense. The Republicans shot themselves in the foot and showed a remarkable inability to actually govern from start to finish.

One of the key hurdles that President Trump faces is how to bring the 'Freedom Caucus' into a more cooperative frame of mind.  Good luck with that.

Gold and silver finished up the day below overhead resistance, once again.

VIX ticked up a bit ahead of the decision.  Let's see how that goes in the first few days of next week.

Stocks are still riding the reflation trade, but that platform is going to become increasingly unstable as the promises of the new political administration and the triumphant GOP become ases in their mouths.

The queen will be coming home this weekend, and so there is a general joy in the household.

Please remember all of God's creatures, the birds and our faithful animal companions in particular.

Be kind to those you meet, for their lives are often hard.  And as always, be mindful of the poor, the weak, the infirm and the unfortunate, and those who despite their outward prosperity are inwardly empty and dying, who despite their struggles have been formed in the image of God as we have been, and are therefore our brothers and sisters.

Have a pleasant weekend.

23 March 2017

Russia Stole the Election From Hillary - Oh Really

It was not just Hillary that lost.  The Democrats overall were trounced.  

The Democratic establishment lost the loyalty of their rank and file when they started betraying their own traditional base in the pursuit of campaign money, and stepped hard on the enthusiasm for political reform that was blossoming with the Bernie Sanders campaign.

That is modern American politics in a nutshell. For the average person, you can't win for losing.  We are viewed as just the rope in a tug of war between global gangs of kleptocrats.

Here is Jimmy Dore's take on all this.

Caution on language.

Stocks and Precious Metals Charts - The Irresponsibles

“There is only one thing more painful than learning from experience, and that is not learning from experience.”

Archibald MacLeish

"We all make choices, but in the end, our choices make us.

Andrew Ryan as a character in Bioshock

It will be interesting to see if Dandy Don and the Republicans can get their own house in order.

The party leadership, particularly in the House, encouraged the frivolous use of Congressional time with their fifty odd and meaningless votes to repeal Obamacare. They are now so used to acting like powerless frat boys, that they can't seem to buckle down and get to work.

Well, maybe that is not all that bad, all things considered.

So stocks were wobbly today, because the gross ineptitude of the Trump Administration and the Congress is making most everyone doubt that they can get anything done except the grossest of neo-liberal betrayals of the American public.

They certainly do not seem to be able to create an infrastructure plan, fund it, and still provide sweeping tax and healthcare reform.

Perhaps they will settle down and start acting like adults. I am not putting my money on that particular number yet.

But then again, this is always the real challenge for the superior human beings isn't it?  And do not doubt for a moment that the fortunate few think that everything they have is richly deserved, due to their natural superiority.

And so they are puzzled by what they are to do about 'life unworthy of life' that is such a burden on them and their fellows high achievers.    And of course they think they get to decide which life is worthy of the benefits of society.   Or perhaps they let some other group of thugs, or impersonal 'market forces' to do it.

The obvious solution is single payer for all. Every other developed country has made it work. But for some reason Americans cannot seem to do it. I wonder why?

The root of the problem is predatory profit seeking at work in healthcare, pharma, and financials, areas which are always tending towards monopolies and price gouging when not restrained by sensible regulations.

Gold and silver are still hanging on below key resistance.

I have noted a potential 'inverse head and shoulders' formation on the gold chart. It is part of the long handle in the cup and handle formation.

That cup and handle is much, much easier to see on the silver weekly chart. And so far it looks good.

But as always, formations are only potential until they are activated. What the potential formations needs is that upside breakout. And do not think for one minute that a lot of the Street denizens are not watching that action as well.

Have a pleasant evening.

22 March 2017

Stocks and Precious Metals Charts - The Men Who Stole the World

"The problem of the last three decades is not the 'vicissitudes of the marketplace,' but rather deliberate actions by the government to redistribute income from the rest of us to the one percent. This pattern of government action shows up in all areas of government policy."

Dean Baker

"When the modern corporation acquires power over markets, power in the community, power over the state and power over belief, it is a political instrument, different in degree but not in kind from the state itself. To hold otherwise — to deny the political character of the modern corporation — is not merely to avoid the reality.

It is to disguise the reality. The victims of that disguise are those we instruct in error."

John Kenneth Galbraith

And unfortunately the working class victims of that disguise are going to be receiving the consequences of their folly, and then some.

Secure in their monopolies and key positions with regard to reform and the law, the corporations are further acquiring access to the protections of the rights of individuals as well, it appears, at least according to Citizens United.

Maybe our leaders and their self-proclaimed technocrats will finally do the right thing. I personally doubt it, except if by accident. They are loyal to their donors.

More likely, the right thing will eventually come about the old-fashioned way—  under the duress of a crisis, and the growing protests of the much neglected and long suffering public.

History will look back at us with the same wonder that we look back on the mad excesses of certain nations founded in devotion to extreme, almost other-worldly, ideologies of the last century.

Gold was trying to rally, but just could not seem to crack the overhead resistance at 1250. Silver was unchanged most of the day.

There was an incident outside the UK Parliament building. It sounded like a terror event, but the markets did not react over much to it.  These sorts of actions are never justified, and are truly appalling.

Existing home sales came in weaker today.

The hopes for a big fat tax cut on the back of 'Trumpcare' seems to be receding a bit, as the House conservatives keep resisting what they call 'Obamacare-lite.' This tax cut and deregulation was the basis for much of the 'Trump rally.'

Apparently the slashing of health benefits for the unfortunate is not severe enough in the proposed Trump/Ryan plan. Our GOP house neo-liberals are enthusiastic to unleash the wonders of the cure-all deregulated market on the American public, again. Like a dog returns to its vomit.

Better if they start breaking up corporate health monopolies and embrace real reform at the sources of the soaring costs. The US pays far, far too much for drugs and healthcare, and deregulating the markets is not the solution.  We do have the example of the rest of the developed world for what to do about this. It is called 'single payer.'

But players keep on playing. And politicians and their enablers in the professions will not see what their big money donors do not wish them to see.  And that is one of their few bipartisan efforts.

Might one suggest that our political animals stop trying to do all the reforming and cost controls bottom up, while applying the stimulus top down? That approach they have been flogging to no avail for about thirty years is a recipe for a dying middle class.

Here is a short video from the Bernie Sanders WV town hall that shows The Face of American Desperation.   By the way, the governor of West Virginia is a Democrat.  He wasn't there.

Let's see if stocks can hold these levels, and if the metals can muster the buying momentum to move higher.

Have a pleasant evening.

21 March 2017

Stocks and Precious Metals Charts - Omnivorous Power, Hail

"Because power corrupts, society's demands for moral authority and character increase as the importance of the position increases."

John Adams

“You have to understand that only the very worst end up here: the ones whose anger made them kill, and who felt no sorrow or guilt after the act; those so obsessed with themselves that they turned their backs on the sufferings of others, and left them in pain; those whose greed meant that others starved and died. Such souls belong here, because they would find no peace elsewhere. In this place, they are understood. In this place, their faults have meaning. In this place, they belong.”

John Connolly, The Infernals

Today was an interesting day for US equities.

This is the biggest downward move we have had in stocks since December 7 of last year.

Financials, which have been riding high on the Trump rally, helped lead the major indices lower.

Still, this is just a much needed correction from a highly overbought short term condition. We won't know if this is the start of a bigger correction until we break some downside supports and moving averages.

Gold and silver caught a bid in the paper assets sell off. They are still beneath the breakout levels which we are watching.

The US dollar continued moving lower according to the DX index. This was a boost for the metals priced in Dollars.

Let's see how the rest of the week goes, and if we see any signs of an intermediate trend change.

There was intraday commentary about 'About Fake News.'

Below there is a video re-enactment of Trump discussing his budget proposal and healthcare plan with his key advisors. Trump is played by Peter Ustinov.

Have a pleasant evening.