A World Turned Upside Down

When I recently missed James McShirley’s comments near the beginning of the Midas report, I was not aware that he was first occupied caring for his wife who was ill and then himself having to fight a losing battle against the COVID-19 Pandemic. Whether the direct cause of his death was the virus or effects of the vaccine is not known; both the illness and the officially sanctioned and heavily promoted yet quite leaky vaccines to prevent infection can cause the blood clotting that most often is fatal, as reported in the case of James Mc. His unfortunate death and that of many other Americans is a direct result of the greed of Big Pharma and their hold on US officialdom at all levels.

This is a blunt accusation, purely based on evidence of the progress of the pandemic in different countries and the various therapies used to prevent infection and to treat the ill. Not to belabour the point: on Friday the US reported 92 966 new Covid cases and 1705 deaths. A few days earlier the Indian state of Uttar Pradesh, which suffered heavily during the early stages of the latest wave of infections in India, reported that the 240 million people who live there are Covid free. On 11 October, the Indian state of Uttarakhand, after copying what Uttar Pradesh has done and whose infection rate was at the top of the six Indian mountain states, had 7 new cases and zero deaths – this after 343 673 infections and 7396 deaths earlier during the pandemic.

In late August, Japan broke away from the standard treatment protocol to authorise all health officials to treat Covid with an Ivermectin based regime. They had their peak daily infection rate early in September at 24 379 and a few days later a high of 90 deaths. On Friday, Japan had 622 new cases and 31 deaths. The big change is the large drop in the number of new cases, both in India and in Japan; when one can prevent infection, fewer people die. Meanwhile reports flow in from many places about the vaccinated being the majority of the new Covid cases in those regions, to show the vaccines fall short of expectations and do not live up to the promises. Israel is one of the countries to experience this setback.

Again to be blunt: in the 1700s when the oppression and exploitation of Americans by Britain crossed the threshold of what is reasonable, there was a revolution. I wonder when Americans will rise against the manner in which the pandemic has been managed clearly for the financial benefit of Big Pharma and with absolutely no regard for how many more American lives will be needlessly lost to fill the coffers of Big Pharma. The best way to overcome the pandemic is no secret; it has been clearly illustrated in a number of regions, including India and Japan. There has been a misleading official and media supported campaign to discredit the simple and cheap solution to keep people safe from Covid and help them recover should they become infected. This campaign recently moved up a gear and is in very real terms intended to promote murder.

Indicative of the rate at which Americans are dying of Covid: the number of US deaths at 743 880 so far, is three times higher than the number of deaths in all countries except the next four on the list. Deaths per million of population stand at 2231, or 0.22% - of the whole population, not only of Americans that became infected.

My intention for some time has been not to write any more about the pandemic. But when a needless death hits close to home there is also a need to vent and rant. As long as it helps some readers to keep their families safe. There can be no doubt that there is gross and widespread disregard for their Hippocratic oath by physicians and health professionals. Government, for reasons of its own, is in cahoots with Pfizer et al, who are making a mockery of whatever mission statements they employ as a mask to disguise their true nature. Science is capitulating to the dollar, not for the first time.

Good financial results here and some more there and prospects look good, while we all know inflation is going to be transitory; more than enough reason for Wall Street to shake off the attempts by the Bears to get a significant correction going. The sudden sharp trend changes and sustained rallies despite a weak start – often with the futures deeply in the red early the morning – and frequent days of heavier than usual volume throughout much of the day – combine to trigger a suspicion that there is no longer much normal trading based in investor driven supply and demand on Wall Street.

Consider the four CNN charts below of the DJIA. Two of the screenshots were taken in the brief widow of time when the trading volumes are still displayed shortly before the market closes for the day. Observe in the upper images the change in the volume pattern during the day – high turnover just after the open. The bear trend in the first chart was reversed with sustained buying that cut the loss for the day almost by half – but required a sustained boost of high volume later to keep the market from collapsing.

In the second chart, the early sign of weakness was reversed on high volume, which was sustained while the DJIA meandered sideways to lower much of the day. When the market began to trend lower, a massive burst of buying caused the DJIA to rally to a new high, where it again settled down as if the market had not just rallied 150 points. Then, when heavy selling resumed to send the DJIA steeply lower, BANG – the big buyer was back to stop the rot before the day could close in the red.

The first of the next two charts shows Wall Street having a really bad day from the open. The market did little more than zig-zag sideways as the sellers tried to regain control, but frequent rallies prevented them from doing so. Midway during the day, with the sellers apparently becoming exhausted, the Buyer swooped in and achieved a recover to show a small gain for the day. Demand slacked off once the day was green, as if there were no longer any of the earlier keen investors who, perhaps reacting to a bit of good news, suddenly started buying in quantity to trigger a sustained rally. This looks more like a Big Buyers relaxing and taking it easy when the target for the day was achieved – a positive close.

The second chart above shows a hectic start to the trading day. As so often happens, Wall Street jump started out of the blocks, but then ran into more than anticipated selling. With the Big Buyer caught unawares, the DJIA fell vertically into red territory, but BB recovered quickly and stepped up to the plate bat swinging – only to run into more determined selling. And so it went for much of the rest of the day, with sellers taking control late, but with a strong rear guard action by BB to salvage some pride with a close somewhat above the day’s low.

In the PM markets we are accustomed to manipulated price behaviour. Chris Powel is noted for his statement in the late 1990s, “We no longer have markets, only market manipulations.” What is going on with Wall Street and also with the counter-intuitive behaviour of the dollar and the yield on the 10-year Treasury – where the markets appear to believe that the suddenly higher inflation is only a flash in the pan – confirm what he had said two decades and more ago.

How long still before reality trumps the finagling of the markets – here in the US and just as badly in much of Europe and other parts of the world? Is the move up by silver a sign that the Cartel is pulling the plug on their intervention in the PM markets? Do not hold your breath – it is not likely to be imminent.

Euro–Dollar

The dollar index last week slipped a little lower from the high level it reached the week before, but is still hovering around a value of 94 – still strong. This kept the euro also range bound close to its support along lines E and X. The close on Friday is marginally above line X, which could be a warning that the euro is due to stage at least some recovery soon.

Euro–dollar, last = $1.1600 (www.investing.com)

DJIA daily close

DJIA. last = 35294.76 (money.cnn.com)

As discussed earlier, it would appear from observation of the intra-day trading of the behaviour of the DJIA that there is a large Buyer – or a small consortium of traders with deep pockets – who are intent on keeping Wall Street strong. Knowing by now how quickly panic can set in when Wall Street wobbles, they are making certain that the seeds of a panic are not allowed to take root and sprout.

Early signs of weakness in the stock market soon run into determined buying that either reverses the trend immediately or sometimes keeps the market steady until more sellers are committed before the market reverses for the market to trend higher. Not all sellers are taking profit on existing positions; there clearly are speculators who will tend to play the index futures. When the market holds steady, they see opportunity to keep on shorting. Then when the market suddenly rallies steeply, they are stopped out and lose capital, making them nervous – which eases the effort and funds needed to support the market.

Gold London PM fix – Dollars

Gold price – London PM fix, last = $1772.65 (www.kitco.com)

Last week’s mild improvement in the price of gold managed to reach the resistance along the top of channel ST. The recovery into the narrow channel is a positive for gold, but so far with little technical sign that a gold rally has really started. For that to happen, the London PM fix has to break above the resistance of lines S, W and Z and keep going.

Euro–gold PM fix

Last week, the euro-price of gold managed to hold the recent recovery into its main bull channel, but then did not do much more to inspire any confidence. Between a lukewarm price of gold and a euro that is holding sideways, there is no possibility of any fireworks on the horizon. At least the outlook remains positive as long as the euro price of gold can hold in channel KL.

Euro gold price – PM fix in Euro. Last = €1528.6 (www.kitco.com)

Silver Daily London Fix

Last week it was silver for a change to lead gold higher. The rebound off watershed line H and the bottom of channel XY failed to break above the top of the bear channel in order to get to grips with resistance along line Q. This implies that further gains are not (yet) a given; channel XY still holds intact for a near to medium term bearish bias.

Technically, this complements the conclusion from the chart of the dollar gold price – that there has been improvement, but not yet enough penetration above resistance to inspire further gains over the near term.

Silver daily London fix, last = $23.24 (www.kitco.com)

U.S. 10–year Treasury Note

10–year Treasury note, last = 1.574% (Investing.com )

The yield of the 10-year Treasury note has held the break above line Y accomplished ten days ago, but despite a brief challenge to break back into channel KL soon sank back again.

Much like the dollar which pays little attention to the possibility of inflation breaking loose and trending higher, the bond market is content to sit and simmer with little price action that could be perceived as rising concern that higher inflation could force the Fed to raise interest rates much sooner than expected. It seems to be a case of, “We can hear a train coming, but it is not yet visible beyond the turn in the tracks. We can continue to play on the rails,” with little time to get out of the way when the train barrels along into sight.

West Texas Intermediate crude. Daily close

The price of crude oil spiked a little higher last week, yet it also appears almost like slow-motion movement. Nobody is in a hurry about inflation, but there are these pesky energy shortages in China and in Europe and perhaps a small increase in the price is justified. A break above channel AR, should that happen, would bring the message that either the global shortages will really hurt the US as well, or perhaps that Powell and his compatriots who see a future with little or no inflation happen, to be correct.

WTI crude – Daily close, last = $82.28 (www.investing.com)

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