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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Dr. Voodoo who wrote (154765)	3/20/2020 12:12:03 AM
From: sense	1 Recommendation Recommended By Dr. Voodoo Respond to of 217576

A reversal in the market today... that is real... has a real driver. The Central Banks finally got around to applying $ where it actually matters, instead of only where it doesn't. The change doesn't, IMO, alter the long term directional biases... does nothing to fix structural problems or market pricing distortions or dislocations... but it does suddenly remove the foot from the accelerator, which, in itself, changes the short term dynamic... if in relative terms only. Instead of 90 mph plus on mountain roads with windows closed and hair on fire... today we're under the speed limits, out for a Sunday drive on the main, sporting a new do, with the top down. Gold will likely languish for a while... as the differential with silver fades the ratio off the Wednesday highs at 127... I missed my pre-market entry at the low, under $12, but in USLV at silver near $12... The daily dialing for dollars trade in FX... predictable as clockwork... is over now... ending one of the best and easiest trades in my memory... and in result... The liquidation trade in everything else, at least for now, is over, too... and that impacts stocks along with other things that have been experiencing the forced liquidations... Pretty clear that "real" silver... versus the paper variety... cannot rationally be priced below $14... since that's what it costs to make it. The detachment apparent between "real" and "paper" traded in the market recently... has a lot of latent potential to enable changes in paper market functions... soon... as it is proven how destructive they are of REAL functions in the REAL economy by forcing the mis-pricing of real things... But, for now, the key impact is that seen in the end of the dollar driven liquidation events... as the forced liquidation of European banks silver short positions is likely over for now... while the reduction in the short is likely to have removed long term and persistent obstacles impeding the silver paper trade from reflecting the market value of the metal. Might be worth speculating, of course... over what it might be that could have driven the "corrections"... when the lawsuits in question... are still ongoing ? Being resolved... though... before a ruling ? Just guessing, of course... but I'd think that the market events we've seen likely highlight the risks being addressed ? And, from that, might guess that DB's derivative risks were long dollars and short silver ? Otherwise, if it were anything else... DB would be a smoking hole right now ? And, then... from that... perhaps you can also see what it is that bankers really value... more than, say, legitimate pricing discovery... or market stability... never mind Mom and Pops retirement nest egg ? Why didn't the Repo work... but making money available to Money Market Funds... suddenly did ? Maybe now we know where the funding backing the leverage in those losing DB trades came from ? MAG seems happy with it... Sometimes its not about the speed... but the bounce: