With a tip of the hat to Tom Petty, here we are once again. Stuck, rangebound and waiting.
(Go ahead. You might as well listen to the music while you read, otherwise it will be stuck in your head all day.)
So, here we are. It's now June 21 and it's as if June 1 never happened. Do you remember that day? We were all excited. The Gold Cartel had allowed gold to trade past it's 2% daily cap and it climbed almost 4%, or $58, after the extremely lousy (even after the imaginary B/D adjustments) BLSBS data. At the time, it was easy to be excited. Maybe gold was breaking out? Maybe QE3 was right around the corner?
Maybe it was simply the long-awaited spec short squeeze that we had discussed here ad nauseam. And now, after squeezing the spec shorts three weeks ago, The Gold Cartel is hustling those same, brainless algos are right back into shed. Two weeks from tomorrow, the next BLSBS report comes out and, barring any unforeseen opportunities before then, the SSS (Spec Short Sheep) will once again be fleeced. Until then, we wait. (The picture in the left was taken on June 1 and it shows an SSS get worked over. The image on the right was taken yesterday and it shows an SLS getting the same treatment.)
At the end of the day, paper metal prices are still in the same ranges in which they've been held for over 7 weeks. Gold continues stuck in a $100 range, bounded by $1630 at the top and $1530 at the bottom. Expect this to continue for a while longer. Silver, too. It's simply bouncing around between $27 and $29 while JPM waits out option expiry next week. Note that on May silver option expiry, silver closed just above $30. It broke down through $30 the next week and has been pinned under that level for the entire time since.
Alright, just two other items for today. First up, this very interesting article from Detlev Schlichter. Turdite tabberto posted this link earlier and it merits your attention. Thanks, tabberto!
Second, maybe we can help a brother out. This author is a Turdite. He sent me a copy of his book and asked me to read it. I will, eventually, but I'm a little to busy right now to give it the attention it deserves. So, I'm suggesting it to you, sight unseen. Here's how he described it in an email to me:
"Given the popularity of fictional books in recent months such as The Hunger Games, and 50 Shades of Grey (alright... that's for the wives... but it's sort of like reading the other team's playbook, no?), I thought it would be timely to release a fictional novel that pushes the themes of sound money. The basic premise of my book, The Troy Standard, describes how a man comes to realize the value in gold / silver investing and how it morphs into an attempt to create a global, metals-backed currency, the obstacles he confronts, and the eventual results of maintaining the status quo."
So, what the heck? If you're looking for a little summer reading, maybe you can help this guy out by buying his book. Anyone who does so should be sure to report back with a review when finished.
That's all for now. Here's a little more TP to help get you through your day. TF