Currencies and metals get whacked overnight on the Trump 2.0 victory

Good Day... And a Wonderful Wednesday to you! Well, the election/ voting is over and now we wait for official results, and then the parties reaction to them... It does appear that we'll have Trump 2.0.. I really don't want to deal with all of that, so I'll just say NO! I don't want to go down the rabbit hole of talking about who won what.... I'll let others do that, and I'll learn from their mistakes, for I could never live long enough to make them all myself! The Killers greet me this morning with their hit song: Somebody Told Me.... 

Somehow, someway, someone, decided yesterday, to save the dollar from falling off the cliff... That someone had to be the PPT, because of the way the dollar reacted, with the BBDXY gaining 6 index points on the day... A large move upward without economic data to boost it, without one Presidential nominee taking hold early, without any Fed Heads out on the speaking circuit. And don't forget that the FOMC begins their 2-day meeting to discuss interest rates, today... I can hear the getting the board games out to pass the time.... Monopoly, anyone? 

I truly expect the FOMC to cut rates now... I was on the fence about this rate move yesterday, but after a day of thinking about this, to come to this conclusion.... Sop, that would normally be bad for the dollar, and that's another reason for the PPT to come in and boost up the dollar.... They saw the FOMC cutting rates, and the dollar getting sold, and the PPT wanted to give the dollar a buffer... 

Gold found its way through the gauntlet of short paper traders yesterday, and ended up gaining $7 on the day to close at $2,743.50... Talk about working its way through the gauntlet of short paper traders, Silver ended the day up 15-cents, but a mile away from its intraday high... Tsk, Tsk... Those darn short paper traders, really know how to ruin one's day, eh? 

Well, Oil and bonds don't seem to be keen to the Trump 2.0 scenario... The price of Oil was sold lower by $1.50 to a $70 handle, and the 10-year's yield rose to 4.43%.... I read where the writer thought that bonds would be subject to tons of supply, coming up and that's why the yields are rising again, in the face of FOMC rate cuts... 

In the overnight markets last night... OMG! This is really outrageous! Traders are trading with their emotions this morning... The overnight traders bought dollars and bought dollar, and bought dollars until the BBDXY was up 12 index points, and the euro was looking sickly again... But, that's not all... Gold is getting sold in the early trading and is down $65 to start our day, and Silver is down $1.20.... There ae some short paper trades being made in this, but for the most part this is trader sentiment about how the next 4 years will go.... 

I'm still concerned that there will be problems with the transfer of power here... There have been quite a few quotes by Democrats that they will not allow Trump to set one foot in the White House... And for that reason alone, I'm surprised that Gold is getting whacked... Let's hope that's all ill wind blowing and not real game plans....

Think about this... What has Trump preached during his campaign? That interest rates should be lower... And that tariffs of imports will be his number one revenue source... Well, lower interest rates should be manna from heaven for Gold, and higher costs for goods here will push the Trade Deficit to new heights and cause tons of money supply to be on tap, which will push prices higher in inflation, and that should be manna from heaven for Gold... So... Why the negative reaction, has befuddled me, this morning...  

Speaking of tariffs... The two countries that are on the list of countries that will see the highest tariffs, saw their currencies get whacked Big Time... The Japanese yen and Chinese renminbi, saw their respective currencies get sold down the river last night, and I doubt the selling will stop there... 

The U.S. Data Cupboard is empty this morning... There's nothing there, zip, zero, nil, a big Goose Egg... And there's really not much the rest of the week, and that bothers me... I'm just saying... 

To recap... The BIG Unknow became known last night, as it appears that Trump won the election... I know, it's not official yet, but Trump 2.0 appears to be on the horizon, as long as he is not contested by the opposing party... This news has traders going bananas... Gold is down $65 this morning, and Silver is down $1.20... What gives? Well, Chuck does his best to explain why this doesn't make any sense this morning... 

For What It's Worth... This FWIW article is a little different from what I usually look for, but I liked it so there's that! This is an article about how the shutting down of our Central Bank has been done by a president before, and how it was done, gives us clues about how to go about dismantling the Fed...

Here's your snippet:"But it happened once—in 1835—thanks to President Andrew Jackson. He was the first and only president to pay off the national debt completely.

One biographer says the former president viewed debt as a “moral failing,” a sort of “black magic.

When he became president, Jackson was determined to rid the U.S. of its national debt. After all, debt enslaves you to your creditors.

Jackson knew that being debt-free was essential to independence. This outlook resonated with many Americans back then.

With that in mind, Jackson attacked the institutions and powerful people who promoted and enabled the federal debt. This included the banking elites and the Second Bank of the United States, the country’s central bank at the time and precursor to today’s insidious Federal Reserve system.

While campaigning against the evils of national debt and central banking, Jackson miraculously survived an assassination attempt when an assassin’s two pistols both misfired. Shadowy interests tied to the central bank were almost certainly behind the effort."

Chuck again... As usual that was just a snippet, if you want to read more then click the link above... Spoiler alert, you'll have to sign up for the newsletter to read it all... UGH!

Market Prices 11/6/2024: American Style: A$.6568, kiwi .5950, C$ .7181, euro 1.0709, sterling 1.2862, Swiss $1.1462, European Style: rand 17.7151, krone 11.1164, SEK 10.8918, forint 382.94, zloty 4.0617, koruna 23.6633, RUB 98.08, yen 154.24, sing 1.3348, HKD 7.7763, INR 84.28, China 7.1746, peso 20.55, BRL 5.7824, BBDXY 1,274., Dollar Index 105.28, Oil $70.02, 10-year 4.44%, Silver $31.44, Platinum $972.00, Palladium $1,038, Copper $4.27, and Gold... $2,678.13.

That's it for today... Well, how long was your line at the polls? I had very nice people around me in line, and they kept pointing out chairs that were ahead and telling me to go sit and they would allow me back in line when they got there... My hip thanked them over and over again! Note to self... Next election, wait until after 8:30 am when everyone is back at work after voting! And I fell asleep much earlier in the evening that usual, so I didn't have to watch the election results... I recall the last election going to bed thinking that candidate A had won, only to find out the next morning that wasn't the case... So, no surprises this year, and that's much better! I see a heart specialist this afternoon... I wonder what she has up her sleeve? Nothing I hope, much like Bullwinkle would find! HA! Doucette takes us to the finish line today with his song: Mama Let Him Play.... I hope you have a Wonderful Wednesday today, and please Be Good To Yourself!