Last week, I recorded a segment with Dave at the X22 Report. It was a wide-ranging discussion and it's particularly timely given the strong rallies we've seen in the metals and miners since it was recorded. If you have some time, you should be sure to give it a listen.
This was actually recorded last Thursday but just released today. There's a TFMR coupon code discussed at the end of the call, too, so please feel free to send the YouTube link to anyone you think might benefit from listening.
For today, another strong rally that began last evening...just like Monday and Tuesday this week. We were also helped along by a strong 7-yr treasury auction which helped to keep a bid in the bond market. As we discussed last week, the apparent easing of the year-end REPO crisis may help bonds to catch a bid as the calendar flips, too.
The POSX eased lower today, too. This is another trend that may further benefit our ongoing PM rally in January.
As for that ongoing rally...We may have found a level here where "someone" would like to restrain things a bit. See below:
However, we're also due for a breather as CDG is now up $33 on the week. This makes it a little overbought in the short term. More importantly, though, recall how important the $1520-1525 area is to The Banks. We will always encounter stiff resistance there and we may be seeing it now, too. Then consider the blatant and disgusting naked contract issuance at present and you have a recipe for a stall and/or pullback for a few days.
Just Monday and Tuesday, The Banks (HSBC) created over 22,000 new CDG contracts, driving the total OI to a massive new alltime high of 748,737. How many more have they added today?? So, putting this all together, that 5-minute chart above isn't so surprising.
And then, when you consider that we've stated since January that "2019 would see the best gains in the PMs since 2010", the chart below isn't surprising, either. Comex gold is now up over 18% YTD. Very nice.
The Mar20 Comex Digital Silver is also seeing an open interest surge as it's price hit a high of $18.13 today before rapidly falling back to below $18. Regardless, it's still up 77¢ on the week and looking to set itself up for a continued rally in January.
And one quick note regarding the shares. They've had a great week, too, but the reaction to today's intraday PM weakness leads me to believe that we are still being driven by daytraders and NOT the institutional spigots that we expect in 2020. Why? Check the immediate selloff that followed the mid-day drops in CDG and CDS. This is not the typical behavior of long-term investors. It is, however, the normal behavior of quick-buck artists who react to any sort of stimuli.
That's all for today. For Friday, there will not be a morning update but there will be a regular, Friday wrap-up podcast.