Cash vs. Futures Arbitrage and Squeeze Potential in Gold After Bottom Setup – Free Podcast
by Lee Adler, Wall Street Examiner
In this free podcast (recorded Monday afternoon) Russ Winter tells Lee Adler that a shortage of physical gold at the Comex and no real price discovery means that gold and silver prices should soar. Lee says the technical picture on gold has been conducive to a bottom, and says stocks still look to be headed higher.
This is a one-time free podcast, available to all click here to access the Monday, May 20 podcast (Cash vs. Futures Arbitrage and Squeeze Potential in Gold After Bottom Setup).
Why does silver move so much further, and faster, than gold...?
The silver market often gets a bum rap. The reason is that often its gyrations are much greater than those of the gold market.
What causes this? There are theories that bankers and investment companies are conspiring to try to manipulate the market. However, buying or selling alone is not a conspiracy. It is called a speculation. Where conspiracy begins is poorly defined in law, especially where it's one through market trading. But one factor is true: market perception can be changed by those with big wallets.
Quantitative easing and zero rates haven't worked. So let's have much more of 'em, eh...?
Gold attracts investment capital when other asset classes fail to deliver.
So now equities have clearly regained their appeal after more than a decade of what finance professionals would rather we called "sub-optimal" returns, gold investing has lost its urgency for money managers. Indeed, it's become a neat little "short" to trade against whilst picking the next winner in the S&P's all-time high dash.
With Friday's drop gold decided to take the lower fork and should now be moving down towards a DCL. This is great news in the sense that it allows us to formulate a framework and set of expectations.
Gold has moved to Day 19 of a Daily Cycle that typically runs between 20 to 30 days. For final Daily Cycles, the number is closer to 20 days while for 1st Daily Cycles the number is almost 30 days. With gold moving lower this deep in the Cycle, I strongly feel that is not a 1st Daily Cycle.
by Peter Krauth, Money Morning
In mid-April, a black swan crash-landed on the gold market.
Over just two trading days, gold futures prices shed 13%, falling from $1,575 to $1,375.
That $200 cliff dive was the largest two-day drop in 33 years.
Gold prices already had been in steady consolidation mode for 18 months. But the magnitude and swiftness of this dramatic move were rare...to the point of suspicion.
How did markets react? Unlike almost anyone expected.