There was nothing even close to controversial or market-moving in Fed Chairman Kevin Warsh's keynote address at the Jackson Hole Symposium earlier today.
Thus, stocks initially rose in the 30 to 45 minutes after the speech but quickly sold off, leading to a flat finish for the Dow, and lower ends for the S&P 500 and NASDAQ.
With inflation concerns remaining a feature of the Warsh Fed, longer-dated maturities in the treasury market saw yields rise, the 30-year up to 5.20%, and the benchmark 10-year note hitting 4.72%.
The worst performance was seen in precious metals, though there wasn't exactly correlation or any overt relation to the Fed Chairman's speech. Gold fell $144, to $4.456, while silver was battered down from a high of $71.22 to support at $66.00, a drop of more than four percent on the day. While some traders may consider the losses in gold and silver due to higher interest rates, the relationship does't hold water when inflation is figured into the mix.
At the close of the week, it's still apparent that most of the trading operates on noise rather than signal and the LBMA/COMEX brotherhood of repression takes every opportunity to suppress prices for precious metals, regardless of market circumstances. Stocks finished the week with gains while precious metals, which had broken through resistance just earlier in the day, were beaten back to relative supports.
Most of the trading had little to nothing to do with Jackson Hole, the Fed, or Chairman Warsh's hush-hush style. There's more than ample noise in the markets with which to persuade nubes and rubes into wrong-footed positions.
See you Sunday for the WEEKEND WRAP.
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