The market rallied higher once again on more rumors (some kind of unworkable bank deposit scheme: what Europe’s loan-deposit ratios look like), and denials of yesterday’s rumors (L-Pap now says Greece to say in EU, blah, blah). The second chart shows what’s involved with PIIGS banking deposits. Using hook theory, trading rumors is the modus operandi, and not just plain rumors; but rather, inside-job rumors. It’s only a matter of time before this market collapses, but one has to slough through the rigged foul stench along the way. Fund managers scramble all over themselves to load up on “safe” German Bunds and US Treasuries [Bond Funds Prepare for Worst out of Greece]. Looks like an historic top in those.
Lee Adler and I conducted a gratis podcast covering actionable points. Among other aspects I mentioned that ”managed money” has positioned themselves short the precious metals at the highest level since 2008. However from a trading perspective, the chart on silver looks negative with convergence overhead.