Silver is putting in an absolutely huge shooting star candle. We need a confirmation, but this one is very big so watch out!
The $50 resistance remains a big one. Source: The Market Ear
The U.S. just finalized a $20 billion currency swap deal with Argentina and is now directly buying Argentine pesos to help stabilize the collapsing currency.
This comes just a day after Argentina’s short-term yields exploded to 87% as President Milei burned through reserves to defend the peso before the October 26 elections. The new U.S. support marks a dramatic intervention aimed at restoring liquidity and easing pressure on Argentina’s financial system, which has been teetering on the edge after weeks of heavy dollar sales and record borrowing costs. Source: StockMarket.news
Mighty Dollar...
The dollar index $DXY is taking out range highs, closing well above the 50 and the 100 day moving averages. We haven't seen the DXY close "properly" above the 100 day since the dollar bear started earlier this year. Not good short term news for the gold and precious metals space. Source: The Market Ear
In case you missed it... A UBS fund has 30 per cent of its portfolio tied to the failed First Brands Group
UBS O’Connor, a private credit and commodities specialist owned by the Swiss bank, revealed that 30 per cent of the exposure in one of its funds is tied to the auto parts group. O’Connor recently told investors in its “Opportunistic” working capital finance strategy that the fund has 9.1 per cent of “direct” exposure and 21.4 per cent of “indirect” exposure. Overall, UBS has more than $500mn of exposure to First Brands’ debt and invoice-linked financing, according to bankruptcy filings. Source: FT
SPDR gold ETF $GLD went crazy yesterday, seeing $12.5b in volume, easily most in decade
(for context that's more than most of the Mag 7 traded). Only other time it's been that high was in 2013 during the Greek debt crisis h/t @Todd_Sohn Source: Eric Balchunas, Bloomberg
It's not just a stock bubble: AI is also now the largest sector in investment grade credit.
According to JP Morgan, AI-related companies now make up around 14% of the entire investment-grade debt market, with over $1.2 trillion in outstanding debt. It shows just how massive and expensive the AI buildout has become. These companies are financing data centers, semiconductor plants, and cloud infrastructure at a pace we haven’t seen in years. Much of the AI revolution is being funded by the debt markets. Every new data center, chip fab, and GPU cluster requires capital. It’s not just Big Tech spending cash reserves, the entire credit market is fueling AI growth. Source: JP Morgan, StockMarket.news
Same same... Below is a 30 min chart of the Nasdaq index and gold since September....
Stocks and gold have moved in close tandem over the past weeks when the last squeeze started. Slightly illogical given the fact gold is, at least partly, a fear hedge. It could be that the same short term money is just chasing momentum, irrespective of "logic". Source: The Market Ear
StockMarket.news: "AI isn’t cheap... By 2030, the world will need $2 trillion in revenue just to fund new data centers.
Even after AI-related cost savings, an $800 billion gap remains meaning $500 billion in annual capex just to keep building the infrastructure powering the AI boom. Can Big Tech and private equity afford to sustain this level of funding by 2030?" Source: StockMarket.news
