What gets into the minds of these Fed Governors, that they each think that they must open their yaps and give us all their lofty opinions? One Fed Governor speaks on Friday, and the markets plunge… billions of $$$ in capital are wiped out. Another speaks on Monday, and markets rise, creating all new ‘wealth’, in the amount of billions of $$$ on the other side of the ledger. Someone ought to slap these people silly!
Meanwhile, those of us, trying to measure market risk, by means of technical indicators, can’t get a good read, and good signals from the markets… because they are being manipulated by Fed-speak gushing from out of the mouths of fools! They should all just keep their mouths shut, and let the markets do what they’re supposed to do! The opinion of one is not supposed to radically influence, and change, the opinions of millions. This is not how markets are supposed to work. Any form of manipulation can be used by insiders to unlawfully reap windfalls to themselves.
Case in point, if this Fed Governor told anyone, beforehand, what his remarks would be, that anyone could position themselves, with option leverage, to go long just as the jerk opens his mouth. It’s not legal, but when did that ever stop the well-connected? It’s wrong… you know it happens, but, we can’t get in on it… while others game the system. Enough of that.
What’s happened? Prices reversed and rose, miners mostly went up with the metals, and we had an up day. Was there a big-volume reversal off of a well-established support level… probably not, because some Fed governor didn’t let prices get there naturally, on their own! So, charts… speak to me!
I see risers, on fairly large volume in: SLW, FSM, SILJ, PVG, HL, SSRI and GDX.
Decliners, on big volume in: CDE, wonder what that was about? AG found itself here again, too!
Gainers on average volume: RGLD, PAAS, SLV and ABX.
And, gainers on light volume: SGDJ and SGDM.
Gold, in the form of GLD, declined on average volume.
In order to understand Monday, we need to study GLD, SLV, ABX and GDX a bit more carefully. Both SLV and GLD made their moves, silver up, but gold down ever-so-slightly, on average volume. ABX rose, but only on average volume. GDX rose, but with some excitement, as there was volume behind it. Average volume, for all symbols rose some 32%, however. The more sophisticated, who follow the individual miners, were far more moved by the Fed governor talk, than those, typically less sophisticated, who buy the metals symbols and the giant, ABX. Is there more upside to come then?
While nearly everything reversed to the upside, and on larger volume on average… some almost attained their level of previous price support, while the rest put in higher lows than the price levels of the last bottom, Thursday 9/1. Unless, and until, proven otherwise, this was a bullish day, giving off further bullish indications.
Our markets open in 1 hour… let’s see what they will bring.
Tuesday morning, 8:35 am EST, and the metals are off a bit. Hopefully, this will allow them to settle, establish excellent price support, so as to be able to lift-off again from out of a proper basing place. To all FED Governors… keep your mouths shut!!!
Here’s to your accumulation of real wealth!
Harold F Crowell