Wednesday morning's setup was one in which stock futures foretold of horror, with all of the major indices sporting large losses in futures heading toward the open bell. Fear was surely in the air.
Once the cash market opened and had gotten its footings, the bad news turned into a buying opportunity, as news narratives were softened, and, most importantly, yield on the 10-year note and 30-year bond began to tail off. That was key to the massive dip-buying that took place after 11:00 am ET and continued right through to the close.
The ultimate trigger for the initial fear factor was the 10-year note yield spiking, from 5.27% at the close of trading on Tuesday, then opening at 5.36% at 8:30 am. That rise of nine basis points sent a message to markets and the algos and traders took the bait. The overall intent of the overnight yield spike was likely designed to send gold and silver into the void. Both precious metals experienced severe declines at the same time the 10-year yield was spiking higher. Turns out, Wednesday was the last opportunity for the riggers at the COMEX and LBMA to suppress PMs. China's markets were closed for Golden Week, and they re-open on Thursday.
If any or all of that sounds like so much conspiracy theory, fine, don't buy it. But, it makes perfect sense. All markets are sensationally rigged and have been for years. They are designed to goose gains in stocks, primarily, but also are very much aligned in price suppression of precious metals, i.e., real money, a practice that's gone on for decades, with horrific results. Not only have prices for precious metals skyrocketed over the past 25 years, but inflation, the counterparty to massive fiat money creation by central banks - especially the U.S. Federal Reserve - has exploded recently. At the end of the day, stock market gains are paid for by consumer inflation, or, read in different terms, loss of purchasing power. As financial assets appreciate on the back of nearly limitless paper money creation, the downstream effect goes deep into the pockets of consumers, with higher costs for food, energy, and just about everything else.
The United States and its allies in the fiat regime, which includes all of Europe, the UK, Japan, South Korea, Australia and a handful of other countries which rely on exported inflation from the U.S. trade imbalance and deal primarily in dollars, yen, and euros, are facing an existential death spiral created by the central banks. Global debt has risen to unsustainable levels and governments are walking on eggshells in a joint effort to control the narrative, act as if $40 trillion in accumulated debt by the U.S. is no big deal, and try various methods to either tamp down sentiment or make huge profits on their - now daily - manipulations, or both. Actually, as the past few years of the Trump regime evidence, it's almost always both. Nothing like making billions as you destroy the well--being of billions of ordinary citizens.
By the middle of the day Wednesday, yield on the 10-year note had fallen off to 5.27%, right where it had close on Tuesday, prior to the spike, and stayed at roughly that level for the remainder of the session. Stocks, especially those on the NASDAQ and S&P 500, recovered most of their earlier losses. Gold and silver remained moribund.
As Thursday beckons, the same setup is being staged again. The yield on the 10-year is being quoted at 5.33%, fear of more Iranian attacks on oil vessels in the Strait of Hormuz is being ramped up, gold and silver are diving, though more damage is being done to silver than gold, for reasons unknown, but probably because China's markets are reopened and the focus is on the big kahuna, gold. Silver's meteoric rise will come later, next week, next month, but eventually market dynamics will force prices higher. As it is, silver at less than $60/ounce is a joke. In China, the spot price is upwards of $66 and in India, it's closer to $70.
Crude oil is rising this morning, with WTI crude quoted at $92.53 and rising.
No matter what one believes, it's failry evident that anything that occurs between now and the midterm elections on November 3rd is probably fake, controlled, and more noise than signal.
Let's see if Thursday's mockery of open markets is a carbon copy of Wednesday's fiasco. The key will be whether stocks continue to slide after 11:00 am or stop and reverse course as yields come down at the same time. In that circumstance, it's "Buy the Dip, Baby!"
At the Close, Wednesday, October 7, 2026:
Dow: 51,179.87, -341.41 (-0.66%)
NASDAQ: 27,538.69, -61.20 (-0.22%)
S&P 500: 7,801.77, -17.16 (-0.22%)
NYSE Composite: 23,701.92, -219.75 (-0.92%)
Posts
No comments:
Post a Comment