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Waiting On A Catalyst: These Markets Don’t Need A Reason Just An Excuse

10-4-2018 < SGT Report 49 460 words
 

from Silver Doctors:


SD Outlook: All the markets are now set-up. Is this the week gold, silver, and the broader markets finally start moving again?


For the mainstream financial cheerleaders, press and pundits, this is a Goldilocks week of market events – no too many, and no too few, but just right.


Starting out the week we see events and data releases are somewhat slow, but inflation statistics will take center stage by midweek:



The PPI on Tuesday is the Producer Price Index. This is basically the prices paid by producers (as in manufacturers, etc) for their materials which are then used in the production of the goods and services sold. In other words, it measures inflation at the production level. When prices go up on say, aluminum, and Coca Cola needs a bunch of it, there becomes pressure to raise prices on twelve packs of coke. That is a classic example of “cost push” inflation.


On Wednesday, we get the CPI, or the Consumer Price Index. That’s the street level inflation measure. What are the prices of the goods and services of the items we use? If that twelve pack of coke went up $.75 because of the increase in the price of aluminum, that would be relfected in the CPI. Generally speaking, we see the increase in the PPI first, and then after the producers re-calculate their bottom lines and either absorb costs or raise prices, we see increases in the CPI.


Also note on Wednesday afternoon we get the March Fed Minutes released at 2:00 p.m. EST. The release accomplishes two things in the eyes of the Fed, bankers, and by extension, the government:


Any narrative that needs re-worked since the last FOMC can be reworked, scripted, and then tactfully placed into the minutes.
It’s an afternoon release so the timing can help set up the markets to end the midweek in a certain direction and with certain momentum.


So while the markets will be looking forward to the release of the March FOMC minutes, it’s really nothing more than passive-aggressive propagandized jawboning.


To finish out the week we have more of the jawboning:



That’s four Fed Speeches in two days, so there should be plenty of opportunity for the Fed to sweet talk the markets.


So it appears everything is on autopilot, and that is we know what autopilot means when sitting in a Tesla: It’s an accident waiting to happen.


Or a market waiting for a catalyst.


Something is going to break-down, break-out, or flat out break headed into Friday the 13th.


We see the dollar is already waiting on a catalyst:


Read More @ SilverDoctors.com



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