Markets Becoming More Volatile By The Day; Italian Banks, British Real Estate Hit Hard

It's getting a little scary out there in finance-land.

Following the epic exercise in individual democracy in Great Britain, the world's elitist bankers and political forces have been scampering from one impaired asset class to another, the latest and most prominent being Italian banks and British Real Estate Investment Trusts (REITs).

Since Monday, three separate REITs in Britain have shut down redemptions in the wake of panicked outflows since the Brexit vote.

On Tuesday, Standard Life and Aviva both halted redemptions in their U.K.-focused property funds, which are pooled investments that hold real estate, similar to a REIT. Later in the day, M&G Investments joined them.

As for the Italian banking sector (recall that Mario Draghi, current head of the ECB, mismanaged most of Italy's financial escapades a decade ago), FUGGEDABOUTIT!

Just today, short-selling was banned in shares of Banca Monte dei Paschi di Siena, Italy's third-largest bank. Other banks in Italy are in crisis mode, with a huge amount of non-performing loans hanging over a weakening economic picture.

Here in the new world, stocks were slammed as investors suddenly noticed that the major indices were once again closing in on all-time highs. Realizing that the fundamentals didn't support such extreme valuations, it was risk off all day, with the three biggies spending the entire session in the red.

Silver continued its impressive run, closing at 19.91 in New York (where the manipulation occurs, though lately isn't working), but gunning up as trading opened in the Far East.

Here are the results, suckers:
S&P 500: 2,088.55, -14.40 (0.68%)
Dow: 17,840.62, -108.75 (0.61%)
NASDAQ: 4,822.90, -39.67 (0.82%)

Crude Oil 46.65 +0.11% Gold 1,364.10 +0.40% EUR/USD 1.1061 -0.05% 10-Yr Bond 1.37 -6.11% Corn 356.75 -0.35% Copper 2.18 -0.21% Silver 20.28 +1.87% Natural Gas 2.78 +0.43% Russell 2000 1,139.45 -1.50% VIX 15.58 +5.48% BATS 1000 20,677.17 0.00% GBP/USD 1.2961 -0.45% USD/JPY 101.1910 -0.51%

Brexit Losses Erased; SIlver Soars To Near $20 Per Ounce

From Friday, July 1:

U.S. Treasuries advanced accompanied by a stimulus-fueled rally in European debt that pressured regional yields to new record lows. Treasuries were not far behind with demand pressuring the 30-yr yield to a fresh record low of 2.189% while the 10-yr yield hit 1.382%, pausing just above an all-time low of 1.381% that was notched four years ago. The 2-yr note posted a slight loss while the 5-yr note ended flat.

Silver closed in NY at 19.75 (+11.25% - best week since Aug 2013).

For the Week Ended 7/1:
Dow: +548.62 (+3.15%)
S&P 500: +65.54 (+3.22%)
NASDAQ: +154.59 (+3.25%)

Friday's Results:
S&P 500: 2,102.95, +4.09 (0.19%)
Dow: 17,949.37, +19.38 (0.11%)
NASDAQ: 4,862.57, +19.89 (0.41%)

Crude Oil 49.28 +1.97% Gold 1,344.90 +1.84% EUR/USD 1.1135 +0.35% 10-Yr Bond 1.46 -2.15% Corn 368.00 -0.88% Copper 2.22 +1.18% Silver 19.85 +6.62% Natural Gas 2.99 +2.12% Russell 2000 1,156.77 +0.42% VIX 14.77 -5.50% BATS 1000 20,677.17 0.00% GBP/USD 1.3269 -0.10% USD/JPY 102.5180 -0.80%

Stocks Regain Nearly All Brexit Losses, But Silver Tells Another Tale

While the maintainers of the status quo managed to nearly erase all of the losses from Friday and Monday due to Brexit, there is an outlier which Money Daily has referenced in the past, and its name is silver.

Gold being the choice of elitists and very rich people worldwide, it gets most of the attention in the financial press, after stocks, of course. Silver is regarded largely as an afterthought by the all-powerful, but it has been, throughout human history, an essential element in commerce, trade and capital accumulation, and today, it outpaced every other asset class by a wide margin, closing in New York at a very favorable price of $18.695, the best closing price since September of 2014.

While other assets have been languishing or found range-bound, silver has forged ahead by a nifty 35% year-to-date.

As a monetary metal, silver has no equal in terms of affordability and value for the common man or woman. The recent rise will no doubt spur further demand and subsequent gains.

Silver's rise signals a threat to phony fiat money and the monopoly of gold as a store of value. It may also be presaging a new monetary order, one in which the general populace will not be thought of as chattel.

Whoopie!

Brexit Didn't Matter After All:
S&P 500: 2,098.86, +28.09 (1.36%)
Dow: 17,929.99, +235.31 (1.33%)
NASDAQ: 4,842.67, +63.43 (1.33%)

Crude Oil 48.39 -2.99% Gold 1,325.10 -0.14% EUR/USD 1.1101 -0.22% 10-Yr Bond 1.4880 +0.74% Corn 372.75 -2.68% Copper 2.20 +0.87% Silver 18.84 +2.38% Natural Gas 2.92 +2.10% Russell 2000 1,151.92 +1.79% VIX 15.78 -5.17% BATS 1000 20,677.17 0.00% GBP/USD 1.3312 -0.92% USD/JPY 103.2700 +0.34%

Throwing Caution To The Wind, Stocks Power Higher

Stocks surged worldwide for the second straight day as investors seem determined to make Brexit an afterthought.

They're probably correct in their assessment, as, following the initial panic selling, the reality that an orderly exit from the EU by the UK will be an ongoing process.

Stocks in the US remain largely rangebound, since breaking through to new all-time highs would seem boorish and gaudy, which is why it is completely possible.

With every passing political, emotional, and economic event, the will of investors of equities continues to defy basic common sense and rudimentary risk caution. A side effect, or perhaps a direct one, is that short sellers have been thoroughly routed for the umpteenth time. Covering by shorts has been a bloody bath the past two session.

Mind the Gap.

Carry On.

In case you haven't noticed, with today's gain to 18.38, silver is up a whopping 33% YTD, from a December 31, 2015 close of 13.82.


S&P 500: 2,069.62, +33.53 (1.65%)
Dow: 17,679.34, +269.62 (1.55%)
NASDAQ: 4,778.10, +86.23 (1.84%)

Crude Oil 49.42 +3.28% Gold 1,324.20 +0.48% EUR/USD 1.1101 +0.23% 10-Yr Bond 1.48 +1.10% Corn 383.50 -2.73% Copper 2.19 +0.80% Silver 18.38 +2.74% Natural Gas 2.85 -1.31% Russell 2000 1,131.48 +2.18% VIX 16.90 -9.87% BATS 1000 20,677.17 0.00% GBP/USD 1.3432 +0.76% USD/JPY 102.8385 +0.10%

Reviving a prior feature, here's the Rolling Stones:

Stocks Rebound From Dramatic Brexit Declines; Trend Not Apparent Yet

Nothing to see here, really, as markets took Tuesday to bounce back from the losses incurred by the Brexit result.

Participants in the market will likely take today's action to suggest that the initial panic was overdone, and that Britain leaving the EU is no big deal.

The truth may be something different from the offered narrative, but it is too early to confirm any kind of trend, although the Dow, in particular, will have to do some heavy lifting to retain its prior range between 17,500 and 18,000.

New all-time highs are still within hailing distance (S&P: 2134; Dow: 18,351; NASDAQ: 5232), though they are already more than a year old, getting stale and beginning to smell moldy.

Caution is still advised when dealing with a global financial system based entirely on the promises and good faith of either governments or central banks, mostly the latter.

Tuesday Turnabout:
S&P 500: 2,036.09, +35.55 (1.78%)
Dow: 17,409.72, +269.48 (1.57%)
NASDAQ: 4,691.87, +97.42 (2.12%)

Crude Oil 47.98 +3.56% Gold 1,314.70 -0.75% EUR/USD 1.1089 +0.61% 10-Yr Bond 1.46 +0.07% Corn 394.00 -0.06% Copper 2.18 +2.56% Silver 17.81 +0.34% Natural Gas 2.88 +5.25% Russell 2000 1,106.86 +1.58% VIX 18.89 -20.80% BATS 1000 20,677.17 0.00% GBP/USD 1.3354 +1.05% USD/JPY 102.6650 +0.76%