While we all wait on the outcome of either Frau Merkel acceding to reality or the Greeks flipping the entire world the bird on the 17th, i thought it worthwhile to review how nothing seems to be happening in the commodity markets and any attempt for something to happen brutally stuffed back into the most politically advantageous box for soon-to-not-be-re-elected U.S. President Barack Obama.
Gold (AMEX:PHYS) attempted to move above $1625 on the August contract only to be stuffed back $13 as the European markets were closing. At this point maintaining the appearance of control is all our masters have left, so I guess we should indulge them their fantasy for a little while longer.
Silver (AMEX:PSLV) met with the same band of roving attack dogs after trying sneak above $29.05 which might have actually forced a few shorts to cover, but we can’t have that while Jamie Dimon is making a spectacle of himself on Capitol Hill. So, pushing the price back $0.30 for the Europe close was definitely in the cards.
Brent Crude(AMEX:BNO) tried to mount a rally above $98 per barrel but, well, I think you get the idea by now. Having broken below $100 per barrel Brent is likely going to be sold down to the low $80′s while the central banks continue to puff up the equity markets in a sideways range.
Remember folks, it’s all about perception. The people who control these markets really believe that they create reality. They, of course, forget that reality bites.Previous Post » Falls of the Day: American Express, Home Depot and Caterpillar