• 314 days Will The ECB Continue To Hike Rates?
  • 315 days Forbes: Aramco Remains Largest Company In The Middle East
  • 316 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 716 days Could Crypto Overtake Traditional Investment?
  • 721 days Americans Still Quitting Jobs At Record Pace
  • 723 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 726 days Is The Dollar Too Strong?
  • 726 days Big Tech Disappoints Investors on Earnings Calls
  • 727 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 729 days China Is Quietly Trying To Distance Itself From Russia
  • 729 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 733 days Crypto Investors Won Big In 2021
  • 733 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 734 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 736 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 737 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 740 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 741 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 741 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 743 days Are NFTs About To Take Over Gaming?
How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

  1. Home
  2. Markets
  3. Other

Spooked

Spooked - is perhaps an understatement. Although considering the subject of late, isn't entirely out of character. After momentarily blipping higher at the open, silver lost the floor and fell some 7% before reflexively bouncing and rolling over into the Monday session. It would behoove us to remember next time we consciously admit along the lines of, "Although running against our better judgements..." - we follow those instincts. But alas, there's no crying in baseball - and certainly not with silver.

Comfortably creatures of contrast and comparison, the nature of Sunday's open - both the Friday lead-in, rapid loss of cabin pressures and retracement bounce - was eerily reminiscent of how silver first raptured back in May of 2011. With that said, the psychological underpinnings and capital comittments towards silver here are worlds apart and in our eyes simply don't merit chasing the downside.

What's also interesting - both in light of silver's Sunday swoon, the comparison with May 2011 and its typically leading relationship with the equity markets, is the comparative structures and now glaring motivations of the Fed's quantitative cow bell in both salvos. During the arc of QE2, risk appetites were indiscriminately (both commodities and stocks) motivated higher - initially by the telegraphed reporting of the Wall Street Journal's Jon Hilsenrath - and subsequently by Chairman Bernanke himself. This major asset run then culminated with a blowoff top first in the shallower ponds such as silver and then through the system's deeper waters.

While silver and the commodity and currency markets respective cascades have largely been ignored and qualified as just a change of guard and character - we continue to heed their warnings and consider the equity markets curling structure and driven behavioral bid by the Fed unhealthy to say the least. Notable, when even contrasted with the last time the equity markets irrationally broke through the long-term meridian in 1995.

SPX Monthly Chart

1995 SPX versus 2013 SPX Daily Chart 1

1995 SPX versus 2013 SPX Daily Chart 2

As always - and perhaps more than ever - Stay Frosty.

 

Back to homepage

Leave a comment

Leave a comment