Stocks And Precious Metals Charts – Intervention In The Overnight Futures Market Turns The Tide On Stocks’ Wild Ride

Stocks were swooning overnight. Early in the morning hours buying started turning the tide, with the SP 500 futures leading the way. 

As we know from the past crises and statements, buying the SP 500 futures was the remedy recommended by Treasury Secretary Robert Rubin.

But we did have a significant correction, and it may not be over. One day’s bounce does not a bull market make.

The problem was that the underpinnings of the market were so thin that ittook very little to set the market spinning on a wild ride as volatility, long suppressed, began to revert to the mean.

Trump said he would love to ‘shut the government down’ if the Democrats do not give him what he wants on immigration, and that ‘the world is laughing at the US.’ Yep, but maybe not for the reasons he thinks. He also said that not applauding his great accomplishments in the State of the Union was ‘treason.’

His act is getting tired.Especially for the leader of the most powerful nation in the free world.

The Dollar managed to get a little boost higher and hang on to it, but silver and especially gold were methodically sold. Gold was smacked into the close, but bounced back three dollars after the close.

The XIV inverse to volatility ETN, marketed to retail investors by Credit Suisse, was incinerated in the market drop, and is said to be in liquidation.Other funds were suspending redemptions.

Nothing has really changed. Arrogance and a disregard for the proper treatment of risk has once again been reinforced.

I am afraid that this is just a taste things to come.