This week is a monster, and it's a market that wants to hear good news and is getting plenty.
Here's the way it sets up for the rest of the screenplay: Bernookie comes on after we get a load of a popping CPI to tell us, don't worry, that's the inflation he said he'd tolerate so we can destroy the dollar at the rate of six percent per year for the next five, so we can reflate housing to the prices that died in 2007.
Ok, he won't say that exactly, but it will be pretty much the same thing. That ought to set us up for the next run at triple point Dow, and give those technologists a shot at "we're "embedded" above 13000 and sky's the limit.
Silver will take a little off for the absence of risk, or the appearance of the absence of risk, and put a bunch on later in the day on its industrial side.
Friday's CPI will be more of the same, but we're used to that from Thursday BS session. You'll notice today that the Germans were publishing fluff pieces about solving Greece's near term problems more robustly than they'd hoped.
What a line! I haven't seen this much world wide choreography since Yankee Doodle Dandy.
Will it "work"? Well why not? I always liked David Copperfield.
Silver continues to sell off Wed night overseas on the absence of "risk" as the world makes believe it is getting "better", which is like pancake makeup on a Walking Dead zombie. The PPI/CPI pop this week Bernookie alluded to as "temporary" will be in the realm of an annualized 4.8% imho, but will be jawboned "away" at 0900 as the Bernanke kerfluffles about its "temporary" nature due to "gas". Talk about walking dead. And these are CPI/PPI where they've taken out most of food clothing and shelter from the equation. Pencils are getting cheaper tho.
Well there's a lot of "gas" going into the market, but as long as lemmings follow, there you go. Futures are once again flat as a board, silver is off as much as 1.5%.
As usual, first the risk equation leaves PM, then the industrial side ramps it back to where it once belonged. (oooooooooooooooooooooooooo)
Max Pain is at $35 for SLW for Friday, spikes to 37 for the next option time frame, and settles back to $35 for the rest of the year. A rash, good phrasing that, of challenges abound PM as the dollar has improved a whopping 7% from the bottom. The US emerges as cream of the crap.
Our presence in Afcamelstain and Iraq is drawing to a close. Our devil's bargain, pay for oil using petro dollars, made with Slobby Arabia by Nixon, allows us the meager value of 11 cents on the dollar since 1971, up from 10 cents.
Judicious selling of calls at strike, and just above? turn this into a 26% annual yield-er.
It's something to think about while all this kerfluffling proceeds.
Yeah, SLW kept going up this morning completely ignoring the fact that POS is red. Never seen anything quite like that. I thought we are following the dow for the industrial side. Then why the drop in the afternoon after fomc met? If we are following the dow in the morning, then we shouldn't dump the shares because the news is not in favor on the precious metal. What kind of traders are they? Just speculating for speculating's sake?