Well, you may throw your rock and hide your hand
Working in the dark against your fellow man,
But as sure as God made black and white
What's down in the dark will be brought to light.
You can run on for a long time
Run on for a long time,
Run on for a long time
Sooner or later God'll cut you down
Sooner or later God'll cut you down.
Johnny Cash, Sooner or Later God'll Cut You Down
The metals were under pressure most of day along with stocks as the US Ten Year Notes were in the trading spotlight.
"Treasuries rose as the failure of European leaders to reassure investors the region’s sovereign- debt crisis will be contained led to higher-than-average demand at a U.S. auction of $21 billion in 10-year notes.As I recall, Big Daddy takes the center stage in a $13 billion auction tomorrow. Unless Ben and Timmy decided to just journal entry them over for a change of pace, without the middlemen of finance getting involved. Naw, never happen. John Galt always takes his risk free vig in war and peace. It's the American way.
The bid-to-cover ratio, which gauges demand by comparing total bids with the amount of securities offered, was 3.26, versus 2.85 in September and an average of 3.11 for the prior 10 sales. Benchmark 10-year yields declined from the highest level in more than two weeks as Spain’s Prime Minister Mariano Rajoy, struggling to contain the country’s deficit, met in Paris with French President Francois Hollande.
Silver proved unwieldly for you know who to handle, even as the big chief of the firm was pontificating on the economy from the veranda of the Council on Foreign Relations on how lucky we are to have him and his crew. The title might have been, "Beyond God's Work."
What next? Stocks need to find some footing, and gold and silver continue to assert some connection between the paper markets and reality.
I suspect someone big is in the silver market negotiating for physical, and that sends shocks waves into the highly leveraged trading world as every ounce of physical bullion removed from the LMBA's spin machine takes the basis for about 100 paper ounces with it.
How much is too much leverage? 100 to 1? 500 to 1? It really doesn't matter how fast you are going, it is the relative distance to that wall up ahead, and how quickly you stop.
Have a pleasant evening.