E Heavy Flows Into And Out Of Markets

Today is the last day in the Jewish year, as the New Year 5781 begins at sundown tonight. Today is the 18th of Sept., a Jewish lucky number (because the letters used to write numbers in Biblical Hebrew spell 18 as Chai, or life.) Fortunately, 5781 is a prime number which can be divided by 3 and probably a few other numbers, the omens are not bad for the coming Jewish year.

Today is also a quadruple witching hour in US markets with stock and stock index options to end for the month, and index and stock futures also ending for the quarter. This brings volatility. The Dow Jones swings up and down and the S&P 500 and Nasdaq are in the red. There will be no Sunday tables.

There are heavy flows into and out of markets not just in the USA, but also in foreign places. The only exception is Japan where they are celebrating a new prime minister, and Thailand, where they are practicing lèse majesté against the unpopular absentee big-spending monarch.

Our own monarch, Pres. Trump, will ban both Tiktok and WeChat app downloads starting Sunday night, after the Jewish holiday ends, going much further than he warned of earlier. This has hurt the market especially tech and tel, back in the doghouse. Even Microsoft MSFT.

Complexity

*Kirkland Lake Gold, recommended by BofA Merrill, today declared a US$0.125 dividend, disappointing the market, payable Oct. 14. KL will convert to C$s for Canadians the day before.

KL fell hard at the opening but now is down only 14 US cents 0.25%) as analysts sharpened their pencils. It won a non-brokered subscription refinancing of C$1.3 mn and a two further subscriptions of $2,532,631 at 12 loony cents and C582,000 at 15 loony cents raising C$3.11 mn. Each receipt in loony cents gives the holder the right to buy a quarter share of Canadian Continental Exploration Corp for 18 loony cents over the next two years plus further flow-through units without further charge. The funds are being held in escrow pending KL buying CCEC by Nov. 30 and after that will convert into KL units. This incredibly complex deal is a sign of good outlook for KL. CCEC owns 10,000 hectares of unexplored potential mines in northern Ontario. Institutions own 63% of KL. SPDR Gold (GLD) fell 0.06% to $183.087 but then rose to $183.5+. Multiply by 10 for the price of the metal.

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