Was fascinating watching the market panic today... driven by the suggestion that "rates might rise eventually... but not within the next year, and it may be two or more"...
This exactly the sort of crap I was talking about recently... with the market slavishly focused on the Fed's bullshit... and being willingly manipulated by the masses of bullshit flowing from the Fed rather than... paying attention to reality...
A suggestion of rates possibly rising in 2023... will have exactly ZERO impact on inflation right now ? Its already well over 8% and certain to go much higher. A lot of morons in the market will look at that "news" today and take from it that "rising rates are bad for stocks"... and "controlling inflation will be bad for gold and silver"...
Of course, if the market does try to continue lower from here... the Fed will step in, again, to intervene to keep the new highs coming... as they have every other time the market has begun such a move.
I really don't give a crap when they "say" that they "might" need to let rates rise again... They can't allow rates to rise meaningfully, not now, and not ever, and everyone knows it. So, instead, I want to know when they're going to quit manipulating the markets with direct interventions... which they do every time the market decides a bit of actual price discovery would be a good thing.
As it happened, I was fidgeting with UVXY options at the time, today... having noted UVXY 75 calls for June 25 which were down at $0.19 at noon... were up a bit, and still going up, even as the UVXY dropped all the way down to its current post 1:10 reverse split "floor" at $30.00. Odd, also, that going up at the same time, were the UVXY 15 puts for September... both going up at the same time ?
It's roughly the market equivalent of someone turning the gravity switch off ? And, sure enough...
At 2PM the June 25 calls spiked over $1.20 ? And, not all that much later... were all the way back down to $0.15 ?
The market indigestion in the response today was laughable... the ZH posters, at least, mostly laughing it off as ridiculous... as absurd theater... and of no real consequence... other than it perhaps being useful in manipulating the trade... And there was a trade or two to be made from it...
Gold and silver miners wobbled on the news... roughly in proportion to recent chart strength... So, HL off by 1% on the day... but NFGFF down a whopping 12%... I was a buyer of NFG.V into the close today... getting them at $CA10.35... which, is not a bad days work compared to yesterdays news:
Eric Sprott Just Bought 1.7% More Shares In New Found Gold Corp. (CVE:NFG) [at $12.85] |
