Good morning, it's Monday, October 13th on Phil Strieble, Chief Barca Chagis, that blue line future. So quite a busy weekend here talking with a lot of clients, a lot of different people answering questions here. And this is why it's really important to have a future's trading account in conjunction with what you're doing on the physical metal side, as well as those minors and those ETFs that most of you own. The futures markets were quite volatile in the Sunday night, and even in the after-nours into Friday here, we saw a lot of positioning take place, a lot of unwinding take place as well. in the future's markets, and in the US, equity markets. So when you experience a sell-off like the one we saw on Friday, it's really important to ask yourself like two specific questions here. Is this the beginning of a new trend, or is this simply another non-triining event? Remember these bear markets? They don't just form overnight. They need sustained fuel in order to feed that hungry bear. So while sitting here in the driver seat, one of the benefits I have, and I've had for about the last 25 years, I get to see. Thousands and thousands of clients of all different skills. Everyone from retail traders, I'm up to institutional players here and large different hedge funds in mining operations trade. I like to see the way they're positioning in the markets here. And I get to interact with them and discuss, what are the key drivers to what's impacting their specific businesses, industries, and then how they're positioning for it. So what I see here is that many of the clients on Friday were adding to their positions in a significant number of the clients, especially on the US equity markets. Head purchase, put options and put spreads in the S&P 500 over the past. These strategies have effectively help any offset of potential drawdowns from those types of events that we've seen here specifically on Friday. And why do we use put options here? Because they serve as an expensive insurance. I always tell you that you have car insurance, you have health insurance, you have homeowners insurance. You don't intend on cashing in on them, but especially these markets here and the volatility that we're seeing these markets typically fall. Wices fast as they rise and that's why having these types of cheap insurance out there really comes in it's really beneficial because it will also help you manage your emotions when you see these types of volatile moves take place. Now, Bank of America, they upgraded their forecast on gold and silver, they put out this report here. It's about 16 pages and one of the benefits that I see from AI and artificial intelligence is that I could take a report that's that big and within just a matter of seconds condensate down to about 30 seconds here and a couple small paragraphs. The report, it really maintained the bullish outlook here on gold and silver prices projecting significant increases in 2026. They're upgrading their prices to a potential of $5,000 an ounce on the gold market and the reason they're forecast you're up to $4,448 an ounce. So, future trading just below that $4,100 so they're looking for about another $3 dollar move silver they're increasing their forecast of $56,25 for 2026 with the potential to rise to $65 an ounce. Now, the investment demand for gold at increased 14% year over year and that's what's really contributed to this price growth. So we reviewed. The ETF flows, the central bank demand flows. in almost every video here because it's an important driver that market. Now, silver, this is something that I've also discussed is that the demand and the supply dynamics, so despite the projected decline in silver demand, the market is expected to remain in a deficit. One of the problems when you get commodities out there is you get a substitution effect that tends to take place and you also get diminishing demand. Oftentimes, the cure for higher prices is higher prices. Now, we don't necessarily see that in the gold market because gold is stored while silver is mostly consumed. Remember, 54% of silver comes from industrial applications. So they expect at 11% to climb and silver demand next year. Primarily due to changes in solar technology. So silver has been running this deficit since 2021. I put out over the weekend here, some charts that breaks down that supply demand breakdown on the silver market. Seeing that the supply here has been running about five straight years of deficits and is driven by this tight supply, the rise in demand from the green technology. Now, silver, solar consumption is expected to peak this year here and total silver demand is projected to fall by more than half, but the deficit is going to persist. So two things here. You get the price going up. What happens is that you've got this solar application. And basically, I'm no expert on this, but what they have is a paste where they have silver and it goes inside of these solar panels. And what they're doing is they're utilizing less orbit and it's seen over the years where the consumption or the amount that's going into each one of these cells has been significantly shrinking. And then also, they're overlaying other metals and corporate it, whether it's a copper and aluminum, things like that. So you get this substitution of fact. I have a close friend that's an electrician. He deals with a lot of theft. from Major. companies here as far as copper and what they're doing for underground the replacing that copper with aluminum So you do get these substitution effects that take place In these markets here especially as prices go up now they are noting the physical market dislocations in the risk So what you're seeing here right now? is that silver at the enemy and the enemy that's a London metals exchange here and they are the ones you always seem to have these problems because of the fact that well it's in London here. It's difficult with the ports and everything else from a logistical standpoint to continuously fuel that exchange in the increasing speculation where many of those silver contracts are called for by ETFs the way that they have their markets working their dynamics and then anything that's left over here is being least out at about 35% I'm gonna run the least rates here after I finished this video and I'm sure it's continuing to increase because we're seeing about a 5% increase in silver prices so the point is is that much of the silver right now where we saw this rush to bring silver into the United States here

is going to go over to the alami to fulfill some of those needs here because of the way that their delivery process takes place at the end of each contract. Those deliveries have to take place instantaneously where at the CME, you're going to have this first notice date this last trade date. That's why many of you that are working close to me were long to December contract and then what will happen is in November I'll call you and I'll say hey we need to roll over to March and what we're doing is we're avoiding the delivery and things like that where the alami has this instantaneous effect that takes place in the contracts or create an expire on a daily basis that's where you have prompt dates and things like that. So it gets just a little bit more challenging dealing over there and that's frankly why stop trade, an alami products, many, many years ago because of these complications that take place here. Now what could end up happening is you could see where much of the silver leaves here goes over there to fill those needs and then by some chance you have these section 232 type of tariff stake place and it creates physical squeeze over here but I could sell you that in the US standpoint there's not much of a physical problem here at the moment here and not anticipating one at any time soon. So again those higher leasing rates are reflecting the tightness in the physical silver market. on the LME, not on the CME here, and we can even run. how much silver and things like that that the CME has. So looking at some of the top headlines and these other outside markets because you do have equities, bouncing back here from Fridays, dramatic sell-off here, Trump signaled his openness to deal with China and that's what really kind of reversed what had happened. You're gonna see a lot of traders lighten up on their positions, you'll see a lot of put option buying here and with the spike in volatility and things like that, they're gonna most likely be overpaying for any kind of insurance at the moment. So there's plenty of other things to keep these traders tense, you got Morgan Stanley, they're warning him a possible 11% correction. and earnings revisions losing some momentum just as corporate reporting season kick saw. Basically, the third saying is that if we continue to see these problems with China, occur, you could see a sustained sell off in US equity markets, but I don't think that that's on the current administration's agenda. See, I've asked him, he 500 up about one and a quarter percent. Now, is that 100 just about 2% the Dow under about 1% here? The big leader here is going to be the Russell. And I talk about how small caps in the Russell you get this AI growth in this mega. cap spending on AI and the trickle effect here is that it makes it down a small or caps like people like how I look at myself where I'm able to ramp up and read a 16 page report in a matter of seconds because of the fact that we've got AI applications and I have many different AI and probabilities, calculators running the background on a lot of these different markets here. So you look at the volatility index, it had Friday's cell off, it sent the VIX back above that 20 level here, talk about it with a lot of people. The volatility index is down about 7.1% right now crashing back below that 20 level and you do have gold futures while it just hit 411 seconds ago, it's on the high of the day and you start to look at some things when it comes to the volatility index, you really want to see that volatility continue in the trend and it's just not occurring, it seems like every time we bounce back up there, it really gets beat down and we're nowhere closed anything that we seen in April where there was a lot of uncertainty in the forecast was very cloudy, where here these are just one off of events, so we made so much progress on Tera, I've said I don't think they want to unwind that. So investors, they are going to focus on the earnings season this week, you have US financials are kicking off things tomorrow. We've seen this current bull market and the S&P last about three years so far, 20 trillion dollars in market value has been added here from this bull market and we have record amounts of cash on the sidelines. Remember people are every single day investing in this market through different strategies whether you work for a company and when you get paid that 401k goes in and things like that, what's it buying? It's buying a lot of the same things that all these markets are rising on the mega cap stocks and things like that. So you'll get the dollar index here just below that 99 level, you got a little bit of red on the screen here with some of the foreign currencies green across the screen and the metal's mortgage got crude oil snap and back here that's one of the markets that I've been bearish on here, I believe that oil a little in 2026 traveled down to about that 55 to 52 dollars because of the fact that You've got increasing supply. We just have no real geopolitical shocks. You do have a piece of agreement that's taking place in Middle East right now. You got Bitcoin futures, yeah. It's a speculative asset here. You've got a lot of weak money in that market here. And a lot of these different cryptocurrencies. So when you get the corrections, take place because of the fact that people are utilizing so much leverage in there that are its mind blowing here, using 10x leverage and things like that. But naturally, they're going to be forced liquidated in the markets. And you do have soybean futures, bounce and back, a bit only up about two cents here. But it might see some harvest pressure take place. And you might see those futures contracts continue to sell off here. So you go over to Europe and Asia. European stocks, they did rebound from Fridays loss. As you got Asian stocks, well, they fell on those concerns about the trade tensions here. You got the MSCI Asia Pacific Index. extra pan index fell 2.2 percent. That was the biggest drop in six months and I think that that's where the negotiations really take place here with China. So you look at the economic, no economic data releases here with the government shutdown. You're going to look at other alternative data and we'll get that small business that NFIB that's going to be due out tomorrow and it's likely going to prove on optimism here and hiring in the small caps. And that's again, another reason why I say small caps look really good. CMF Head Watch tool, no real change 96.2 percent chance 25 base point interest rate cuts. In the ETFs they added about 163 ounces of gold. You go to the silver market data of 1.98 million ounces of silver to the holdings. So you're seeing significant increase in demand here on silver ETF silver futures things like that. We got almost close to that $50 on the December futures mark here and then if you look at last we change as the increased gold by about 240,000 ounces silver increased about 2.65 million ounces in the gold silver ratio. 82 to 1 so gold making another high blowing through that 4100 mark. So we should be able to see silver futures push above that $50 level here today nice snap back in the copper market A 14 cents hair after that dramatic sell off here on Friday not quite recovering all of its losses. You do have natural gas under a little bit of pressure Bitcoin crypto futures rally and back up a few grams really the stand out in that particular market But you guys have any questions why don't open up future trade in account with us shoot an email the info at blueline features.com Remember futures napkins trading does a mob risk a loss. May not be suitable to on investors good luck good trading