Silver is a symptom... and no one wants to talk about the disease driving the expression of that symptom...
In consequence... the "crash" I expect will occur... only actually begins tomorrow...
All we've done thus far is "take the top" off the bubble. At least, that's necessarily true if you accept the market view of the world as the only and most valid, and ignore the other issues... like the disease, and its source...
The S&P 500 already broke through long term resistance today... Tomorrow, having already passed the resistance, it should challenge the 2018 lows... and that's only about 125 points lower... with no circuit breaker protection there or anything like that...
The DOW, today, finally caught down to the consensus 12 Mos Forward EPS... so, "the bubble" in stocks has finally been corrected to the PRIOR pre-coronavirus earnings expectations... which possibly would have mattered BEFORE we arranged to shut down the economy for the virus ? That's the point that public POLICY should have been targeting all along... in relation to having stocks represent a "fair value" and a minimal divergence risk... And that might have helped us focus on "improving business conditions" instead of "improving the excess pricing in stocks" ? But here we are...well engineered into position to be along for this ride, like it or not. We're not riding an elevator that will gently deliver us to that level we'd prefer, ring a bell, and open the door for us to step gently out on the right floor ?
I think what happens tomorrow... is that as we pass that floor without the elevator stopping at all... people will finally begin to become aware that perhaps the cable has been cut... ? The elevator is not working the way we would like it to ?
Reserve requirements are now reduced zero... so the banks are free to do any stupid thing they want... there are no training wheels left as limits to them... no insurance to back them if they fail. And if what they... and the markets... do next... doesn't work out to win them their bets ? Is it a coincidence that the key event, the day after the training wheels came off... was a bloodbath in silver ? What sense does that make ?
Back to the other market expressions of the symptorms ? The language used here gets at the point...
The dollar's ongoing surge (amid liquidity shortages) prompted further liquidations across commodities with Silver slammed the most...
Why are there still LIQUIDITY SHORTAGES... when we're told "everything that can be done is being done" to ensure adequate liquidity ?
Maybe they're lying to us about that ? Or, maybe they really don't understand what the problem is... that ensures that whatever they do... it doesn't' begin to address the problem ?
(NOTE - the precious metal puke started as Europe opened)...
Remember, yesterday, they promised us "coordination" and I mentioned what that might look like based on the timing expectations... if there were going to be a coordinated direct intervention in the stock market ? Were we just looking in the wrong PLACE for the evidence of coordination ?
And finally, despite massive monetary intervention overnight, the GLOBAL DOLLAR SHORTAGE just went to '11'...
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