Reverse Repos Break $300B, BoJ U-Turn, Stay Calm

And Iran seems to (maybe) have backed off starting an all-out war with a nuclear-armed Israel.

We’ve been waiting over here, and so far Iran has done nothing but get her panties in a bunch. Hizballah has been annoying but no major escalation. One signal that Iran may have backed off is that the front-page Israeli MSM campaign now is to smear Netanyahu’s son Yair for bagging an “illegal diplomatic passport”. Well shiver me timbers. As if our lives depended on the technical legality of some arbitrary travel document of the Prime Minister’s deadbeat son. Really, it’s front page “news”. So maybe the Iran story is over, for now.

Another reason Iran may have bowed out is that they know the Mossad is all over the IRGC. Apparently, it was two IRGC guys who planted the bomb underneath Haniyeh’s bed hours before he went into his room, and the two were smuggled out of the country by the Mossad an hour later before the bomb went off. Read the story if you haven’t yet. It’s pretty amazing.

Gold Open Interest Falls to 483K

We're getting close to the turnaround in the metals. I'd be more comfortable getting to 450K first but 483K is pretty good. We are down 117K from the top, which correlates to the top in price. The encouraging sign is that price is higher than where we were with open interest at about 550K, so a small short squeeze has helped reset the playing field and the next trip should take us comfortably above $2,500.  

Reverse Repos Break Below $300B