I’m going to use a round up of links about what are seemingly unconnected, but are actually very intertwined, events to help us further the gestalt we aimed for in last week’s headline round up.
Claims Per Ounce of Deliverable Gold at the COMEX Rise to New High of 57.6 – It’s not as if the 57 holders of the promises of their own gold in their own vaults being held for delivery are actually going to call for delivery all at the same time. However, does the fact that there’s 1 ounce of gold for every 57 claims at your bank make you nervous or confident? This is not normal in an historical sense, given this chart.
Doug Casey: 3 Stocks to Own When Gold Recovers – I wrote last week that “Over the last two years, GDX has been a highly volatile correlation to spot gold prices. Over the last month or so since we bought GDX it has also been a high-beta correlation to spot prices. But in the last day or two, the GDX got hit because the stocks of gold miners got hit along with the broader stock market even as there was a safety move to gold itself. That is, some people were selling gold miner stocks and buying gold yesterday, in a panic. Over time, GDX should make much bigger moves than gold spot prices…Much much higher than gold — or much, much lower than gold.” Having been lucky in taking huge profits repeatedly near the highs on our prior GDX call buys, I like GDX’s big recent decline here. As gold has fallen, the miners have continued to be a higher beta version of the metal and we sold some GDX calls for big gains near the highs. I’m adding those back today.
What Putin Has to Say to Americans About Syria – I have never felt like the Republican/Democrat Regime represented me and over the last decade, I’ve come to feel like they don’t even represent rule of law. Putin calls this out and furthers the decline of US prominence in propaganda checkmate. Having cringed through Obama’s warmongering speech full of circular logic about his power to ignore but also somehow follow the Constitution, I’m still very leery about further escalation of Syrian/US/Russian/Chinese/UN conflict.
Zuckerberg: The Government ‘Blew It’ When It Comes To NSA Spying – There’s been no bigger bull on Facebook since it collapsed after its IPO than yours truly. Back when the NSA PRISM collaboration with the major US internet companies first hit, I wrote, “The NSA surveillance revelations are both a risk as well as an opportunity for FB and Amazon in particular to step up and become privacy/empowerment properties. Bezos and Zuckerberg are going to have to stand up to the government for their customers to do it though. I’ve made yesterday’s article on this topic free for everybody since you asked about it here in the chat, which I’ve made free this week already.” This is Zuckerberg not doing a very good job of standing up to the government. Sigh. Facebook is still my largest position with mostly common stock at this point since I’ve taken huge profits on those long-dated call options I was buying when the stock was in the $20s.
ObamaCare Staggers Toward the October 1 Finish Line (4) – Is there any way ObamaCare could actually stimulate the economy for the first couple years? It will, like the rest of the millions of pages of radical unfair laws that Republican/Democrat Regime has wrought on our nation, collapse in unsustainable predatory profiteering within such a system of non-agency (meaning that those in control are neither paying for nor receiving the services of the industry, as would be in a system based on rule of law and private property).
Upshot? The bubble blowing trends remain in place for our stocks and the broader stock market. But given the usual panic over such inanities as Greek and Cyprus banking bailouts, it’s rather remarkable how nonchalant this stock market and the public remain as these types of “not normal in a historical sense” kind of major issues actually heat up. I was wildly bullish when the markets would panic over non-crises. I’m much less so as the market whistles past this major potential crisis that isn’t over by any stretch of the imagination yet.
Don’t forget to join me for this week’s Live Q&A Chat at 2pm EST at https://tradingwithcody.com/chat to make up for my not feeling up to doing it as normally scheduled on Wednesday, which happened to fall on 9/11 yesterday.