Precious Metals trade high on Options Expiration day

The US Dollar is lower in the early morning with its price at 82.560,  down 3.3 points but still trading close to yesterday’s high.   Durable Goods and the Consumer Confidence reports are due out today,  and of course these will be just as hard to believe as anything else spewed over the past several years.   Treasuries are stable and unmovable so far proving that the Federal Reserve’s constant buying remains unmovable.   Soon,  there will be hell to pay and what bothers traders that understand what’s been going the most,  it will happen in a flash without the chance of positioning oneself.   The Energy Sector remains unwavering with Crude Oil not moving on any news with its trade at $93.61,  up 26 cents with the rest of the group simply sitting and waiting.   Gold is up in a strong a manner with the trade at $1,288.20,  up $9.30 with its high at the 1% mark ($1,291.70). Open Interest in the noble metals remains at a 5 year low and the CME group lowered the margins again in the metals leaving many to think that another attempt to smash the price this week is at hand.   This may be true in the short term,  but we know it will fail in the long run because the Comex and LME no longer matter when other nations own the lion share of all physicals.   Silver is up also on the day the Sept Options come off the board with the trade at $19.58 (Dec),  up only 14.9 cents with its high so far at $19.65.   Open Interest dropped a bit but still remains very high as we get closer and closer to the Sept delivery period with the OI in the delivery month at 23,721 (118,605,000 ounces) still standing for the physicals.   Bitcoin,  our personal indicator for precious metals direction is trading higher with its price at $508.10,  up $4.10 inside a 24 hour trading range of $509 and $499 as word came out that Korea is now getting involved with the Crypto.   Ripple Coin,  our favorite new Crypto,  is trading up a bit at $0.004970 with lots of room for those willing to risk a few hundred to make a few million (just ask an early bitcoin buyer).   Grains are all trading lower as we get closer to harvest during one of the coldest Summers in US history.   We’re thankful that we have a good crop to reason with,  but are concerned about the weather anomalies and the future of our crops.   Softs are flat to mixed and the Live Stock Sector is trading lower during the night session but seems to be leveling off after the Hogs brought down meat values overall because of China and Russia’s retaliatory sanctions.   Nothing to fear though,  because the Dollar is rallying making all our sellable products more expensive for foreign buyers,  and that is making the Twisted Sisters of the Papers all giddy with stupidity.   I had a fund guy call in last week asking me what kind of trade would be profitable in a market that has no reality tied to it.   He was looking for a way to show a profit and still hold a value as well as not risk too much his capital.   The only thing I could come up with was to wait for the S&P to drop again,  then to close your eyes and simply buy it because the Working Group would cover up the pullback like it has since its creation.     He couldn’t do it because of the possibility of a real drop is a huge problem and that cannot be solved by simply closing his eyes to buy.   “What if the currency devalued or the market never recovered” He asked?   I don’t have an answer for this because we left Kansas years ago in the tornado of 2008.   Reality is nowhere to be found in any of our markets and everyone,  I mean everyone,  is waiting for what we all know is going to happen.   Either you are in the market making a profit right now being long every Paper Exchange,  or your are out of the market sitting in physical Silver and Gold with some Crypto’s.   There is a middle road which is the split between safety and insanity,  but that’s up to the funds holder.   Still reality is the hardest thing to grasp in the land of straw markets,  but we still hold true what we believe in,  having our money out of the markets and into physical Silver and Gold,  plus a small risk in the Crypto’s and to have a few long Call options in the precious metals market.   The long run view we have is these precious metals are leveraged so far out that when the ball,  that is being held under water right now,  will be let go one day and that will make up for any losses we’ve had these past few years.  It did in 2011 and it’ll be here again (imo). So keep those precious metals and Crypto’s close, and as always … Stay Strong!!

                   JB Slear

866-443-0868 Ext 104

817-717-5489

Fax: 817-764-2537

www.FortWealth.com  

Don’t risk what you cannot afford to lose….

There is significant risk involved in trading futures and/or options on futures.  Futures and/or options of futures trading may not be suitable for all investors.  Investors should consider these risks and evaluate their suitability based on their financial conditions. Past performance is not indicative of future results.