Stocks And Precious Metals Charts - The Savour Of Death

Another round of economic data intruded on the illusions of exceptionalism and prosperity this morning. The pigmen and their servants are restless.

Well, tomorrow is another day, and a good ISM Services number, if such a thing is on deck, will provide a renewed enthusiasm for the games that we play.

The Dollar was lower and gold and silver rose sharply. Funny, that the metals went down BEFORE Golden Week, a seven-day national holiday in China.

The theory there is, of course, that during Golden Week with their markets closed, the Chinese will not be active in the physical markets, thereby cramping the style of the paper leverage games in New York and London. But the stiff decline in the metals happened before Golden Week even began.

By the way, have you noticed that the Chinese have stopped the big offtakes in physical gold from the Hong Kong Comex warehouses some months ago? Do you know why?

The big hit on the metals last month was driven largely, if not almost exclusively, by market antics on the Comex, and the four or five houses who were sucking on the wrong end of big metals short, with an intense desire to drive the price down and cover. And so they did.

Not one thing has changed. The markets may rally madly on a different set of economic data into the weekend. But this is not reform or recovery.

Have a pleasant evening.

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