Following two relatively "calm" weeks in the markets, the week that included the last day of August (Monday) into September proved to be quite volatile, setting up the return of congress after Labor Day as a consequential event.
As the week progressed, the usual uppity attitude of equity markets began to turn, reaching a level closing in on the bizarre behavior the has engulfed the world's population, as in the wearing of masks everywhere, all the time, for no good reason.
While it is certainly true that there is an actual pathogen known as COVID-19 and that it and its variants have spread globally, there is also ample evidence to ascertain that the pathogen (or virus) is hardly as deadly to healthy people as officials from the WHO and CDC, the government, large swaths of the medical community, and especially the media would have anyone believe.
The CDC recently refined some of its data to conclude that only six percent of the deaths in the United States attributable to COVID-19 were caused by the virus ALONE. Through the week just past, that six percent figure (and the coincident number of 9,210 of 153,504 total deaths at the time) was tossed around social media, tweeted by President Trump, purportedly debunked by the mainstream media - first by local affiliates, then by more national and international outlets - re-bunked, resurrected, damned by none other than Dr. Anthony Fauci and finally left out in the open to foment more rage, anger, and divisiveness between anti-vaxxers, anti-COVID "conspirators" and the masked muzzled masses of the general population.
Growing dissatisfaction with government lockdowns and restrictions prompted demonstrations and rallies in countries as diverse as Great Britain, Germany (where some protesters stormed the legendary Reichstag), and, most recently, Australia, and online in China.
Coronavirus and the debate over whether the pandemic is better described as a plandemic or SCAM-demic is just one of three main themes which will grow in intensity as the US November 3rd elections approach. The other two are the economy - and by inference the stock, bond and precious metals markets - and the ongoing Black Lives Matter violent protests that have swept across American cities coast to coast.
This edition of the WEEKEND WRAP will cover the first two of those themes, leaving to say that the BLM/ANTIFA Marxist protesting, looting, burning and rioting will continue virtually unabated until the elections and probably well beyond, no matter who wins or loses.
In terms of the economy, matters turned from complacency to panic on a dime as Wednesday turned to Thursday, with the major stock indices fell by the greatest percentages since the middle of June.
On Wednesday, the S&P 500 and NASDAQ, respectively marked their 22nd and 43rd closing record highs of 2020, and the Dow finished above 29,000 for the first time since February, bringing it to within two percent of its Feb. 12 all-time closing high (21,551.42).
On Thursday, everything changed. As of 4:00 pm ET on Thursday, the September 3 markets looked like this:
Dow: 28,292.73, -807.77 (-2.78%)
NASDAQ: 11,458.10, -598.34 (-4.96%)
S&P 500: 3,455.06, -125.78 (-3.51%)
NYSE: 12,966.14, -310.61 (-2.34%)
It was an absolute drubbing, seemingly out of nowhere, as first time unemployment claims came in at the lowest level since March, 881,000, seasonally adjusted. Apparently having seen or had enough of stock market gains based on multiple expansion among a small number of stocks - the FAANMGs, Facebook, Amazon, Apple, Netflix, Microsoft, and Alphabet, parent of Google - market-propping initiatives and a bevy of easy-money facilities from the Fed, and a government stalemate on a second round of stimulus checks and extension of enhanced unemployment benefits.
Smart money folded, leaving the stock market to novice Robin Hood traders, semi-professional day-traders and the retail public.
On Friday, even after August non-farm payrolls showed 1.4 million jobs added to the labor market and an unemployment rate falling to 8.4% from 10.2%, both better than expectations, sellers were out and about, sending stocks to plumb depths approaching important moving averages. Most of the heavy selling pressure was experienced in the first hour of trading, with all of the indices getting a very good bounce when the NASDAQ touched its 50-day moving average at 10,875.87, right around 10:45 am ET.
That timely move saved what could have been an absolute rout and left the markets just a little bit bruised heading into the extended Labor Day weekend. As markets drew to an exhausted closing Friday, all the averages were well above their 50-day moving averages and even further above their 40-week moving averages on the weekly charts.
The Street.com suggests in this article that selling on Friday might not have been such a bad move.
With Monday an extra day off, even though international markets will trade as usual, market participants will be looking at Tuesday's open with renewed interest though an indicator in Tuesday morning's futures is unlikely to foretell of longer-term prospects for America's industrial and financial markets. While it does appear as if big money has fled or is at least paring down some positions, the moves in treasuries Thursday and Friday confuse the narrative.
On Thursday, yields dropped as expected, with the 10-year note losing five basis points, from 0.68% to 0.63%, and the 30-year shedding nine (1.43% to 1.34%). Friday's dip and bounce produced a huge ramp in yields (selling off of bonds) as the 10-year spurted nine basis points to 0.72% and the 30-year closing out the week at 1.46%. These were enormous moves in what used to be normally benign markets. This past week's volatility in the fixed income space was almost without comparison. All said and done, the longer-dated maturities ended the week just slightly lower from the prior Friday close (0.74% on the 10, 1.52 on the 30). Everything shorter than the 10-year note was virtually unchanged.
Developments to come include an expected showdown over the fifth round of coronavirus relief between House Democrats and the White House. The two sides have moved marginally closer to a deal - which is still widely expected, especially with elections coming up - since talks stalled out in early August. There's also an apparent agreement on a continuing resolution to keep government operating into the 2021 fiscal year, which begins October 1.
Scheduled for September 15-16, the Fed's next FOMC meeting looms. The Fed may or may not be issuing any surprises at that time, though, as politicized as it has become, Chairman Powell might unleash a torrent of tidbits during the press conference following the "no change" policy announcement. After his Jackson Hole policy realignment to inflation "no matter what" stance, nothing the Fed Chairman utters is likely to raise eyebrows any further than they already are.
What the Fed isn't openly opining over is the almost certain unveiling of Digital Dollars and Digital Wallets soon to be opened at banks, credit unions and post offices (yes, post offices) across the fruited plains of America. In the video below, Lynette Zang of ITM Traders delves deep into the machinations well underway in congress and at the Federal Reserve for the change from debt-based money to pseudo-crypto currency and the eventual elimination of physical cash. Just in case Lynette's video is unconvincing to any remaining conspiracy-theory-deniers, perhaps a closer look at the Federal Reserve's branding efforts well underway for FedNow bucks will be more convincing. The Federal Reserve itself isn't exactly shy about the coming changes. This link explains FedNow Services and links to more press releases, speeches and FAQs on the subject.
Coindesk also covers the Digital Dollar movement in congress with an overview here and here.
A bill titled the Banking for All Act was introduced by Ohio Senator Sherrod Brown on March 23, 2020 - oddly enough, the same date that markets bottomed - and was immediately referred to the Senate Banking, Housing, and Urban Affairs Committee. A draft of the bill (Senate Bill 3571) is available in pdf format.
The relevant date for the unleashing of the Digital Dollar is tentatively (no later than) January 1, 2021. Happy New Year, serfs!
Near the end of the video, Mrs. Zang mentions "NESARA", a term with which some - including this author - may not be familiar. While a detailed examination of the topic, which stands for National Economic Security And Recovery Act, we'll leave it - and the scary reference to "drain the swamp" terminology which might endear to some Q followers - to an introduction by Wikipedia reference. Obviously, more research and study on the topic is likely warranted.
Not without notice was the sudden, dramatic drop in the price of oil as the week drew to a close. WTI crude absolutely fell off a cliff on Friday, registering a drop of -3.87% from its Thursday close of $41.37, heading into the long weekend at $39.77 USD/bbl., down -1.60, marking just the third time WTI crude futures have closed below $40/barrel since July 2nd, the last day of trading in the commodity before the Independence Day holiday. Is it mere coincidence that the price of oil and its important relationship to gas at the pump rises just before the big summer holiday and falls just before the last? It makes perfect sense in a normal world where people drive more during the summer, but the price movements beg the question when much of the world is on lockdown with many businesses closed and people eschewing regular summer vacations during a supposedly-deadly pandemic.
On the week, gold and silver again suffered losses. The central bank community of conniving cheaters and colluders are making a mockery of the markets and price discovery as the end game to fiat money approaches.
Spot Gold dropped another $30 over the course of the week, finishing at $1,933.94, very close to the bloodbath low of early August. A similar fate befell silver, though not as severely as gold was downed, closing out the week at $26.91 after getting a boost to $28.14 an ounce on Monday. As much as the intervening operatives wish to deflate the prices of precious metals, premiums at dealers continue to be elevated, though not quite as much as during the early days of the "pandemic" when supplies were short and demand was high. Demand remains elevated, but supplies are returning to near normal levels.
Recent (09/06/20) prices for common items on ebay (shipping - often free - included), numismatics excluded:
Item: Low / High / Average / Median
1 oz silver coin: 31.77 / 37.90 / 33.90 / 33.50
1 oz silver bar: 30.99 / 45.99 / 37.23 / 35.81
1 oz gold coin: 2,000.00 / 2,165.00 / 2,086.21 / 2,085.47
1 oz gold bar: 1,988.99 / 2,068.92 / 2,035.44 / 2,034.81
Finally, here's Lynette Zang covering the topic of Federal Reserve's digital dollar:
At the Close, Friday, September 4, 2020:
Dow: 28,133.31, -159.42 (-0.56%)
NASDAQ: 11,313.13, -144.97 (-1.27%)
S&P 500: 3,426.96, -28.10 (-0.81%)
NYSE: 12,917.15, -48.99 (-0.38%)
For the Week:
Dow: -520.56 (-1.82%)
NASDAQ: -382.50 (-3.27%)
S&P 500: -81.05 (-2.31%)
NYSE: -253.81 (-1.93%)
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