Sorry for the late start this morning. The Turd is just a bit under the weather and moving somewhat slowly. I've noticed, however, that our "markets" don't seem to care. They always seem to go about their business whether or not I'm at my post.
The world is in turmoil but you'd never know it by looking at PM prices. Athens is burning. Civil War in Syria with Russia on one side and the U.S (and Al-Qaeda) on the other. Israel is killing Iranian nuclear scientists and Iran is attacking Israeli diplomats while the U.S prepares forces for the likely event of war. Stocks in America are up almost 20% over the past 6 weeks, all on the back of a falling unemployment rate that was statistically manufactured from whole cloth by bureaucrats at the BLS and a a surge in price by a company (Apple) which now constitutes about 25% of the NASDAQ. It's all so surreal that it's difficult to coherently comment so I'm going to keep this somewhat brief.
First up, the metals. To me, it's clear from the CoT numbers that the Cartels are not going to allow prices to continue much higher from here. There will still be rallies and silver, in particular, looks pretty sturdy above $33...but...with EE short interest growing and momentum slowing, it only appears to be a matter of time before we get a dip in price for both. As you can see on the charts below, if The Forces of Darkness can break some resistance levels, both metals have room to fall before finding rather obvious support zones. Let's see if it happens. For now, I'm not buying anything as I wait for a chance to BTFD.
I hope by now you've had a chance to read the post from Saturday regarding OI, the CoT and lease rates. I'll be watching the silver lease rates very closely this week for signs of an impending raid. As mentioned in that post, the magic level for raids seems to be -0.40%. After falling by a basis point of Friday, the 1-month rate currently stands at -0.31%. Turdite "margaritatime" dug into the internet to find a post written almost 10 years ago by Uncle Ted. If you've ever wondered about lease rates....what they are and how they work...I suggest you take a few minutes to read this excellent summary:
Our friend, Jeff Nielson, has written a brief, new article that seems to fit on well with this post. It's nothing earth-shattering but it's some quality reassurance at a time when everything seems so upside down:
Lastly, more on the impending war with Iran. First, there's this:
then there's this:
And, finally, there's this.
Not surprisingly, crude is UP on all of this at sitting right at $100 as I type. Be cautious out there and stay diligent. Something tells me that this is going to be a long week. TF
p.s. Turdite "cris" has decided that yours truly would make a much better president than any of the current crop of dorks and losers. In all candor, I have to agree. To that end, Cris has nominated "Turd Ferguson" for president on the website http://www.americanselect.org/ If you go there and sign up, you'll be able to search for my name and then add your support. My platform is:
- Elimination of The Fed and a return to a gold standard
- Dramatic cuts in federal spending
- Significant reduction in overseas military presence
- Flat tax of 15% on all individuals and corporations
- Amend Constitution for term limits of six years for President, Senators and Congress.
Now I just have to find a veep. Maybe Rachel McAdams? No, she's Canadian. I suppose Charlize Theron is out, too, as she's South African. Nuts. Gonna have to give that one some thought.