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Stocks shook off the early surprise in a higher-than-expected PPI number and went into rally mode.

And they didn't look back until the close.

The Dollar fell.

Gold and silver rallied after some initial downward compression.

VIX is not at a recent low, suggesting a modicum of complacency has crept in the moneyed crowd.

Note on the first chart below that the gold inventory in the Comex-related Hong Kong warehouses is now at a record low.   

There are many signs of a short squeeze in bullion, both gold and silver.  

And the reassurances by the bullion banking crowd and their courtiers are just as numerous. And increasingly strident and implausible.

Let's keep an eye on this one.

I was a little puzzled by the rally in risk assets today, along with gold and silver.  

It smells a lot like a wash and rinses heading into a geopolitically risky weekend.

If Israel is emboldened by Western neo-cons to launch a first strike on Iran, it will most likely destroy significant sections of both countries, and cripple the world economy. The madness serves none but itself.

It is almost shocking to see how clean, modern, and absolutely beautiful the infrastructure and urban areas have become in eastern Asia. Their routine use of technology, the cost of living, and the quality of service are amazing. My son, the technocrat has recently been to Hangzhou, Kuala Lumpur, and Singapore.  

Their wealth seems to serve them, the broader public, and not a fortunate few.  

I am the designated Daisy caretaker, but I get photos and refrigerator magnets for my efforts. And the occasional face lick from the pooch. It's the little things that make life worth living.

Have a pleasant evening. 

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