The conflict in the Middle East turned hot last night, and an effort to pump the futures higher in a rather deliberate attempt at the mispricing of risk failed— badly.
The FOMC left interest rates unchanged.
There was a significantly larger drawdown of over 7 million barrels in US oil reserves reported by the EIA this morning.
Stocks flopped badly and went out near the lows.
We have set a series of failed rallies that are putting us on 'crash trak' to see if the rest of the dominoes fall. It is a system I developed some years ago. It was pretty good in calling the 2002 and 2008 declines.
Gold and silver rallied quite a bit, but then were smacked down ruthlessly into the close.
The premiums being paid for physical bullion are becoming rather large in some parts of the world.
The gold and silver 'pool' being used to manipulate the price is going to collapse. It has been a long time coming.
Keep an eye on the bonds. The Dollar not so much because the DXY index is a bit of a joke, since it is primarily the obverse of the Euro and the Pound. No value safe havens there.
No, the canary in the coal mine is gold, and they keep throwing a blanket over its cage. But cutting off the alarm does not put out the fire.
Oil was smacked lower to a ludicrous level by very heavy-handed short selling the other day. It was a screaming buy at 80. Almost shocking.
So I stepped into the oil patch. Years ago I played oil and natural gas quite a bit in the futures. Now I just putter around looking for big fat targets. Voila.
There is a remarkable seasonality in natural gas. I think this year it could be rather pronounced.
Need little, want less, love more. For those who abide in love abide in God, and God in them.
Have a pleasant evening.
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