Stocks and Precious Metals Charts - Wash and Rinse Deluxe - Markets in Reversals

Stocks exploded higher today, based on some lame excuse of a news item about how Ukraine offered to engage in ceasefire talks with Russia-- but won't give them anything.

That's like a guy whose girlfriend has given him the boot offering to talk about taking her back but won't change anything he does.

The news flow around this Ukraine-Russia military action is a little surreal at times.

In terms of market effects, today was a 'technical trade' off a deeply oversold short-term condition.

The insiders saw a great opportunity to squeeze those leaning too far on the short side.

Forget alcohol, the mavens of the financial markets dropped some potent pharmaceuticals in the punch bowl.

You can wrap any lingo and terms around it you want, but that was what happened.

And so in the same spirit of 'risk on' gold, silver, and the Dollar all got hammered.

All a technical trade.

I have to admit I was a little concerned about this when we saw JPM selling big tranches of gold contracts out of their house account at 1993 and 2040.

What does 'technical trade' mean?

It means that today was probably not a trend reversal or something weighty in terms of market direction.

At least, not until they run out of over-eager shorts and small specs to burn.

Liars poker. It's what passes for the market distribution of capital in these days of the systematic mispricing of risks.

Have you noticed the spokesmodels and talking heads grilling their guests about why Biden and crew don't do more to increase oil production, to 'open the spigots' and start dealing way federal lands for more drilling?

If oil at $130 doesn't provide an incentive for these jokers to increase production without more government subsidies, then our system is broken beyond belief. Or hopelessly entangled in shameless monopolies and cartels.

But let's see what happens next. As I've said, this is a double black diamond market.

Have a pleasant evening.

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