The Metals:

Gold saw slight gains in Asia and London before it dropped down to $1235.18 at about 9:15AM EST, but it then climbed back to $1244.35 by late morning in New York and ended with a gain of 0.14%.  Silver slipped to as low as $17.21 and ended with a loss of 0.29%.

Euro gold rose to about €968, platinum lost $9 to $1247, and copper fell a couple of cents to about $2.98.

Gold and silver equities rose about 1% in the first hour of trade before they fell to see slight losses by midafternoon, but they then bounced back higher in late trade and ended near unchanged.

The Economy:

Mortgage Rates Tumble as 30-Year at 16-Month Low of 3.97%  Bloomberg

Bullard Says Fed Should Consider Delay in Ending QE  Bloomberg

Tomorrow brings Housing Starts, Building Permits, and Michigan Sentiment.

The Markets:

Charts Courtesy of http://finance.yahoo.com/

Oil bounced back from the last 2 weeks of significant losses.

The U.S. dollar ended slightly lower in mixed trade.

Treasuries fell as the Dow, Nasdaq, and S&P stabilized somewhat from recent volatility.

Among the big names making news in the market today were Danaher, Chrysler, AbbVie, Blackstone, AIG, Philip Morris, and Goldman Sachs.

The Commentary:

“Having been trading the bonds for many years, the recent volatility has really caught my eye. The extent of the price swings in this market has been nothing short of breathtaking.

Whenever you see a market make swings of this magnitude, know that someone is in serious trouble.

Take a look at this short term price chart and imagine the carnage being inflicted on some traders as they swing back and forth from such huge extremes.

Do you see those big volume spikes? Someone got obliterated!

Try to imagine that you are a risk manager for a large banking or mortgage interest and are attempting to institute some sort of hedges! How in the world do you even read a market that is doing this sort of thing? I can tell you that hedgers and speculators both have been run over in this market the last couple of days.

This is what I am referring to when I caution traders out there. These markets can clean you out faster than a package of Ex-Lax if you let down your guard. Either trade smaller or stay on the sidelines but do not try to play the hero right now. It is just too dangerous!

Making predictions, postulating this or prophesying that, in dogmatic terms is very foolish and speaks more to hubris than it does to sound judgment. What I do know is that the entirety of the markets is very unsettled right now with the VIX having rising sharply and with the currency markets having been thrown into turmoil. Until the currency markets calm down, be careful.

By the way, crude oil is managing to hold above $80 for now and the XLE is up today. Maybe crude has gone down enough? I don't know but am monitoring it very closely.”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/

“• What I have called for years, the “Don’t Worry, Be Happy” crowd that works on Wall Street, came into existence in my mind back in August 1987. As Head of Investment Strategy for Philips, Appel & Walden (NYSE Member Firm), I issued a commentary back then that predicted a market crash. I was called on the carpet by the company President the very next day. It was what he said to me on that faithful day that help shape my opinion of Wall Street and has allowed me to see it play out over and over again through today.

He stated that 90% of our clients will never take my advice and sell everything. When my warning proves wrong, they will consider me a fool and never listen to anything I say again because if they did, it would’ve cost them all their gains. He noted that if by chance I was right, the damage I envisioned would be so great that the 90% who didn’t listen would be so hurt that they couldn’t take advantage of when I concluded it was safe to go back in the water.

He then said let’s look at the 10% who may listen and bail. He was willing to wager that despite having saved them a ton of money, at least half of the 10% won’t be able to pull the trigger when I gave the “all-clear” signal. He then uttered the sentence that has proven accurate for the next 27 years – “Peter, we can’t survive as a brokerage firm if only 5% of our clients benefit from our advice.”

Strictly from a sales point of view, he was 100% correct. And that’s why I truly believe the Archangel Gabriel could visit just about every Market Strategist for just about every financial firm, tell them Almighty God had sent Him to warn them of a pending crash and even if they chose to believe the messenger and headed to their office to warn their clientele, their bosses will never ever allow it.  You will never be in a Ford Dealer and be told if you really want the best car in that class, head down to the Chevy dealer. Therefore, you must realize that those who work on Wall Street are always going to be tossed off the top of the Empire State Building and all the way down say the same thing, “so far so good.”

There’s a better chance of finding the needle in a haystack than obtaining 100% independent and not sales influenced advice in much of the financial media. Sure enough, almost all the “Talking Heads”, the very ones who said, “Buy, Buy, Buy right up to the top, are all saying it’s just another buying opportunity. There’s little worry on their part because if that proves incorrect, they will all but certain be in much better shape than you. Yes, we're likely to have powerful countertrend rallies that may look and feel like the worse is over, but the economic, social and political storm I spoke about is only first engulfing us.

• Ironically, I happened to catch two members of the “happy” crowd getting spanked by a man (Keith McCullough) who is clearly the exception to the rule on Wall Street. He just happened to make a series of excellent points you should pay heed to.

• Sing along for bears

• While it’s a psychological lift to see gold hasn’t “died” as so many predicted, rest assured the plethora of bears aren’t just going to head to hibernation without a fight. I can see them already defending getting above the 50-day M.A. and know a cross above the 200-Day M.A. will all but certain send them away for a very long time. It’s good to see open interest rising on the Crimex (Comex) as it suggests its fresh buying and not just short covering.” - Peter Grandich, http://moneytalks.net/peters-content.html

GATA Posts:

Ambrose Evans-Pritchard: World economy so damaged it may need permanent QE

The Statistics:

Activity from: 10/15/2014

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

Note: Change in Total Tonnes from yesterday’s data: SPDR subtracted 2.093 tonnes.

COMEX Gold Trust (IAU) Total Tonnes in Trust: 161.40: No change from yesterday’s data.

Silver Trust (SLV) Total Tonnes in Trust: 10,717.20: No change from yesterday’s data.

The Miners:

Comstock’s (LODE) third quarter results, Seabridge Gold’s (SA) drill results, and Great Panther’s (GPL) third quarter production results were among the big stories in the gold and silver mining industry making headlines today.

WINNERS

LOSERS

Winners & Losers tracks NYSE and AMEX listed gold and silver mining stocks that trade over $1.

Please see Yahoo’s Mining/Metals News Wire for all of today’s mining news.

- Chris Mullen, Gold Seeker Report

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Additional Resources for today’s Gold Seeker Report can be found:

• http://www.capitalupdates.com
• http://www.goldseek.com
• http://www.silverseek.com
• http://www.goldreview.com 

© Gold Seeker 2014

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