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Air Pockety 2/12/21


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Air pockets have appeared in the intraday charts. Is this the top, or a top. That higher right shoulder makes me suspicious. I can't remember the last time that pattern has broken down let alone into a sustained decline. 

Support is suggested at 3890 and 3868. Any move that holds above that is a nothing burger. 

tvc_9bdbd02819c42dbb95bba82988972d25.png

 

The latest from Liquidity Trader. 

Primary Dealers are Already Dead

5 Mining Picks Ready To Swing as Gold Holds

Proof of How QE Works – Fed to Primary Dealers, to Markets, To Money

 

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So we now have a triangle pattern with support at 3890 and resistance at 3915, and converging toward one another through the day. There's been no hand tipping yet as to which way this will break out. Normally, I'd say up.

Double top at 3928, anyone? 

 

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From about $500 an ounce five years ago, the price of palladium quintupled to hit a record of $2,875 an ounce last year, and is now hovering between $2,000 and $2,500 an ounce, above the price of gold. Rhodium prices have skyrocketed more than 3,000 percent from about $640 an ounce five years ago to a record $21,900 an ounce this year, roughly 12 times the price of gold.

The soaring prices may be accelerating the shift to electric cars, anal cysts said, noting that catalytic converters now make up a much larger proportion of a gasoline-powered vehicle’s cost than they did even just a year ago.

https://www.nytimes.com/2021/02/09/climate/catalytic-converter-theft.html

 

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The Primary Dealers always hedge their fixed income portfolio positions in the futures markets. Looking only at their bond portfolio positions may not give us an accurate picture of how screwed they are, or are not.

We have data for their futures hedging. It’s called the COTS- the weekly Commitment of Traders. Every Friday, the CFTC publishes the positions of various players in the futures markets. Among those reports is the dealer positions.

The rest of the world focuses on the specs, mostly the big specs—the hedge funds. I say, who cares! I want to know how the dealers are positioned. After all, they’re the ones who run the games. The big specs are just the whales at the tables. Some of them are good players, for sure, but they’re not the House. The dealers are the House. We want to know how the House is positioned.

We need to know this information so that we can make a swag on just how impaired Wall Street might be. We want to do our own stress analysis of what’s happening to the dealer portfolios as bond prices move one way or the other.

We know that, since last August, the trend isn’t going well for them. I can’t quantify exactly where the breaking point is, but I think we’re close, if not already past it. In this report, I continue laying out the circumstantial case.

Subscribers, click here to download the report.`

KNOW WHAT’S HAPPENING NOW, before the Street does, read Lee Adler’s Liquidity Trader risk free for 90 days!

Act on real-time reality!

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On 2/12/2021 at 11:19 AM, BurntOnce said:

From about $500 an ounce five years ago, the price of palladium quintupled to hit a record of $2,875 an ounce last year, and is now hovering between $2,000 and $2,500 an ounce, above the price of gold. Rhodium prices have skyrocketed more than 3,000 percent from about $640 an ounce five years ago to a record $21,900 an ounce this year, roughly 12 times the price of gold.

The soaring prices may be accelerating the shift to electric cars, anal cysts said, noting that catalytic converters now make up a much larger proportion of a gasoline-powered vehicle’s cost than they did even just a year ago.

https://www.nytimes.com/2021/02/09/climate/catalytic-converter-theft.html

 

Someone used pipecutters to steal our neighbor's catalytic converter about 2 weeks ago.

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