Isn't it amazing how so many days here in Turdville feel like Groundhog Day?
I mean, seriously. Same sh*t, different day.
It seems like I've spent countless hours these past two weeks, explaining to everyone the significance of having the HFT spec algos set to "sell-the-rally" mode. My hope has been that one day, I'll wake up to see gold well back above the 100-day MA and then see the algos relent. That day is not today, however.
As I go to post this first chart, I see that gold is now all the way back to $1206 and $13 off of its highs. I'll post an updated version of this chart in a minute. For now, here's how it looked today at the Comex open:
And here's how it has gone since the Chinese Lunar holiday ended back on Tuesday night. UP during Globex hours, DOWN during Comex hours. The blue bars delineating Comex open and closing times:
And right now, all around the world, folks are looking at the gold price and thinking "wow, gold sure can't get going" as if it's some kind of equitable market. But there's nothing free, fair, normal or equitable about it!
At present, the momo-chasing HFT spec algos are hammering price on every rally, all the while guided by the nearly-invisible hand of The Bullion Banks. There's no reflection of supply/demand fundamentals and there's certainly no reflection of the true value of precious metal. Instead, these are simply computers chasing a dot on a screen, buying and selling based upon the latest headline or blip on the 1-minute chart. It's ludicrous. It's nonsense. And it's enough to drive you mad if you let it.
OK, so now it's time for your updated chart, this time in 2-minute candles. Does this look familiar? It should because it's nearly identical to yesterday.
Meh, whatever. Whaddayagonnado? It is what it is. Blah blah blah.
There are a couple of interesting things going on today, however. The Greek and Grexit situation remains very much in doubt and a near constant state of flux. Read this: http://www.zerohedge.com/news/2015-02-26/germanys-bild-has-message-greece-nein-no-more-billions-greedy-greeks and this: http://www.zerohedge.com/news/2015-02-26/greek-bank-run-leads-biggest-monthly-cash-drain-history-january-deposits-plunge-2005
This has led to a 1%+ drop in the euro and a commensurate rise in the POSX...no doubt this also encourages the momo-chasing specs to continue to sell metal. The Pig is back over 95 as I type!
And the situation in Ukraine/Russia is NOT getting any better (http://www.zerohedge.com/news/2015-02-26/ukraine-halt-currency-trading-again-any-minute) and the Russians might shut off natural gas flows as soon as this weekend: http://www.telegraph.co.uk/news/worldnews/europe/ukraine/11436525/Russia-could-shut-off-gas-to-Ukraine-by-weekend.html
Of course, as I've maintained all along, this is leading to drive Russia away from "the west" and into closer ties with "the east". These creditor nations will, ultimately, build a competing monetary system to rival US hegemony and the Ukraine Crisis is only serving to speed up the timetable. But this isn't simply the thinking of some lunatic who spends too much time staring at his MacBook. Read here: http://thediplomat.com/2015/02/is-a-china-india-russia-coalition-inevitable/
Anyway, here are your updated daily charts with the rapidly-closing pennants. Though we failed again today, let's see what tomorrow brings. Failing again tomorrow, let's see what Monday and the new month brings. In the end, I still think that we'll be happy with how these resolve.
Finally, be sure to keep in mind that today is contract expiration for the March silver future and tomorrow that contract will trade with 100% margin on First Notice Day. Therefore, though we've already seen a range of $16.47 to $16.90, expect even more wild volatility in the hours ahead. In the end and as you might imagine, I'd just like to see a Friday close back above $16.65. Am I asking too much??
One last note...There won't be the usual podcast this afternoon and there may not be a new post in the morning, either, as I will be taking a brief trip to check in on Mama and Papa Ferg. There will, however, be a full podcast summary and review by late Friday. Additionally, be sure to check back this afternoon for a podcast interview with a special guest.