Lola Likes Gold Over Bitcoin…

Rocktober 18, 2017

* Gold gets taken below its 50 MDA
* Chuck want’s to know why?
* Chuck has idea for scandalous corporations..

Good Day… And a Wonderful Wednesday to you! I woke up this morning, and my mind immediately thought it was Thursday, and I needed to get going because I have an infusion appointment right out of the starters blocks on Thursday. Then I realized it was Wednesday, not Thursday, and I said, “Chuck you dolt, it’s only Wednesday”… And so, I start my day… Makes me wonder what else I’ll “get wrong” today.. The Chi-Lites greet me this morning with their song: Oh, Girl…

Front and Center this morning, “the boys in the band” have taken Gold below its 50-day moving avg. There were more than 300,000 contracts traded yesterday, and once there was some slippage in the early morning trading yesterday, “the boys in the band” (TBITB) decided to pile on and point to the slippage in the currencies and the rise in the Dollar Index as their reason for all the short paper trades… And Gold is not faring well this morning with the early morning trading pushing Gold lower by $4.

Yesterday’s damage to the shiny metal’s price was $9.70… What? have all the geopolitical tensions gone away? I don’t think so! And is the Fed really going to hike rates in December? I don’t think so! So, tell me, tell me true, what’s behind this assault on Gold all about Alfie? Well, I could give you my conspiracy theory answer, but if I did, you would probably think that I’ve lost it… So, I won’t, that is, unless you want me to…. Oh? You say, you want to hear it? OK, hold onto your hats… And for those of you not into conspiracy theories, then skip ahead, go ahead, my feelings won’t get hurt!

OK, for those of you who wanted the conspiracy theory it goes like this… First of all, you must recall the “big price reset” thought that James Rickards has for Gold… And then think about all those short positions out there in Gold. More than 90 days of production it would take to equal the short positions on the books.. So, what’s the only way the institutions behind all those short positions are going to make money? That’s right, if the price of Gold continues to drop, but what happens to all those short positions if the “big price reset” happens tonight or tomorrow or next week? Those institutions take HUGE losses… So, in my mind, these short Gold paper traders are rushing to push the price of Gold lower so they can close out their short positions, and get ready for the “big price reset”… Sound corny? Well, it’s how I see things going on right now, right or wrong, it’s how I see it!

Alrighty then, it’s OK, it’s safe now, you can come out and play again, I’m finished with that! Well, as I mentioned briefly above, the Dollar Index saw some love yesterday, as the talk about a rate hike in December increased in volume… I just don’t see it happening like that folks… I don’t see the Fed hiking rates in December, and IF they would, it would be a last ditch effort by the outgoing Fed Chair, Janet Yellen, to everything she can to put 100 miles of desert between her and the zero interest rates policy that held court for quite a few years here… And IF she did hike rates in December, which I still don’t believe she will, that rate hike would be quickly reversed at the next meeting.

That’s my story, and I’m sticking to it! And I really dislike having to rinse and repeat myself so much on interest rates, but when the newswires are full to the brim with articles about the Fed hiking rates in December, I just get all worked up… So, the dollar is in charge this morning, and is still feeling its oats as the strong dollar trend has basically ended, but no one told some dollar traders… HA! Seriously though, when a currency trend ends, you’ll still have days when the asset on its way out, has good days… And don’t forget that a star burns the brightest right before it goes dark…

I read an article last night about how far the Chinese and Russians had gone with convergence, and then I came across this bit of information from the Russiafeed.com site… “The trade turnover between Russia and China in the first eight months of 2017 grew by 35.2 percent and had exceeded $54 billion, the figures of Russia’s Federal Customs Service showed on Thursday.” WOW! It was also announced yesterday, that China has developed a payment system (PVP) for trade between the two countries, that will remove the need for any dollars to be involved…

These two countries are hell bent and whiskey bound to de-dollarize the world. See what happens when you tick off other counties? The can’t match our military strength, but they can go after the use of the dollar around the world, and that’s what they are doing… Shoot Rudy, as long ago as 7 years ago, I was doing presentations and showing audiences a quote from the Chinese President, about how the dollar standard needed to be changed…

I’ve said this before, but allow me to repeat it… The Chinese don’t say things that they don’t mean. And, if they do say something, you can bet your bottom dollar that they will do everything they can to achieve or meet that statement. So, 7 years ago, the Chinese were telling the world, that the dollar standard needed to be changed, and no one was listening, except me, of course! And people used to think I was crazy, and so on.. Well, who’s crazy now?

And what’s the U.S. doing about it? The only thing I see that they are doing about it, is making things worse, with their debt build up, and the prospects for more debt to come. On a side bar, I had to laugh out loud yesterday when reading the paper and seeing that Wells Fargo was going to have to pay $3.4 million to customers to settle a regulator’s claims that brokers recommended certain investment products they did not fully understand. Really? $3.4 Million, that’s all? OK, I’m going to get on my soapbox here so if that’s not your bag baby, then skip ahead…

So, do you believe in your heart of hearts that the bank made more in fees than $3.4 million? Then why on earth would they not have to give back all the fees they made when a court finds them guilty of wrongdoing? I can tell you that until an institution has to give back all its gains made in something that is ruled to be unlawful, or in bad ethics, etc. then this stuff will continue, and we’ll be reading about some other institution doing something to harm investors and depositors…

Boy, today started out slow, but the crescendo was building, and then BAM! Chuck shows his true colors about these so-called refunds for damages…

The U.S. Data Cupboard was as expected yesterday, with Industrial Production turning around August’s negative print, and printing a 0.3% gain in September. Capacity Utilization ticked up to 76 from 75.8% nothing to write home about.. And now we sit and wait for additional real economic data to print… Until that day, we’ll see some Housing data today and Friday, and Leading Indicators, and that’s about it for data this week…

Oh, one more thing on Gold before I go today… Apparently Lola (Goldman Sachs) likes Gold more than Bitcoin.. Lola issued a statement yesterday, and here it is… “Precious metals remain a relevant asset class in modern portfolios, despite their lack of yield,” analysts including Jeffrey Currie and Michael Hinds wrote. “They are neither a historic accident or a relic.” Looking at properties such as durability and intrinsic value, they are still relevant even with new materials discovered and new assets emerging, such as cryptocurrencies.”

So, Lola likes Gold… Interesting isn’t it? I would say that this tells us that Lola is long Gold, and doesn’t like seeing investors swap out of Gold for Bitcoins.. But then If I said that, it would mean that I know something about Lola that everyone else doesn’t, and I don’t! Just to make that clear!

To recap… The Dollar is in charge, but as Chuck reminds us, a star burns brightest before it goes dark… Gold got whacked again yesterday, and taken below its 50 day moving avg. Chuck wants to know what has changed, with what’s going on around the world to cause this selloff of Gold? Lola likes Gold more than Bitcoin… Tells you something doesn’t it?

For What It’s Worth… This is interest in that it’s something that I’ve wanted to see for years, and now that it’s available the CIA doesn’t want POTUS to release it… I’m talking about the Kennedy assassination papers… And it can be found here: http://theduran.com/cia-urges-potus-trump-to-delay-release-of-3000-never-before-seen-documents-on-assassination-of-john-f-kennedy/

Or, here’s your snippet: “More than 3,000 never-before-seen documents from the FBI, CIA, and Justice Department are set to be released, along with 30,000 that have only been partially released in the past. The document dump “will simply fuel a new generation of conspiracy theories,” write Philip Shenon and Larry J. Sabato.
Sabato is the director of the University of Virginia Center for Politics and author of “The Kennedy Half-Century” and Shenon is a former reporter for The New York Times and author of, “A Cruel and Shocking Act: The Secret History of the Kennedy Assassination.”

The CIA is urging President Donald Trump to delay disclosing some of the files for another 25 years according to friend and political adviser Roger Stone but the National Archives would not say whether any agencies have appealed the release of the documents.

According to The Gateway Pundit Roger Stone and Gerald Posner, two New York Times bestselling authors who are polar opposites about who killed JFK, have joined together to urge Donald Trump to release all the remaining classified files on Kennedy’s assassination.”

Chuck again…. I was 8 when Kennedy was assassinated, and I still remember that day like it happened yesterday, and for years I, of course, would have a different take on how it all happened, and who was behind it all, so I’m hoping these papers get released soon!

Currencies today 10/18/17… American Style: A$ .7829, kiwi .7133, C$ .7985, euro 1.1750, sterling 1.3175, Swiss $ .9812, … European Style: rand 13.4910, krone 7.9525, SEK 8.1634, forint 262.33, zloty 3.60, koruna 21.8911, RUB 57.31, yen 112.70, sing 1.3580, HKD 7.8074, INR 65.12, China 6.6146, peso 18.79, BRL 3.1686, Dollar Index 93.67, Oil $52.10, 10-year 2.32%, Silver $16.98, Platinum $923.85, Palladium $979.73, and Gold… $1,282.30

That’s it for today… The Baseball games last night were good, and I say that even though the Yankees won their game! The ALCS is tied 2-2, and the NLCS is 3-0 in favor of the Dodgers.. Our Blues come back home after a 4 game road trip to play the rival Blackhawks tonight… Let’s Go Blues! This is the last “full to the brim” Pfennig of the week, as tomorrow’s will be a “lite” version, and then no Pfennig on Friday… It’s Homecoming Week at Mizzou this week… We used to make a weekend out of Homecoming, but not any longer… I was talking to a friend last week and he said, he hadn’t flown is Mizzou flag this year since they were so bad, and I said… I’ve flown mine every Saturday! My team may be bad, but their my team… Ok… Steely Dan takes us to the finish line today with their song: My Old School… Is there gas in the car, yes there’s gas in the car… Love it! I hope you have a Wonderful Wednesday… And Be Good To Yourself!

Chuck Butler
Creator & Editor of:
A Pfennig For Your Thoughts

 

a) The Daily Pfennig is no longer published by EverBank and it is now published by Aden Research Group.

Chuck Butler recently joined the Aden Research Group, a research center led by writers and market analysts Pamela and Mary Anne Aden. The Aden Research Group publishes three newsletters:
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