Last week, SPX broke out to a new all-time high and extended its move 34 points beyond. Since that level corresponds to a short-term projection, a minor top could develop and bring about the second correction of the uptrend which started at 1992. Unless extensive...
Gold Editorials & Commentary
July 17, 2016
The June nonfarm payrolls came in at a stunning up 287,000, following a revised downward May nonfarm payrolls of 11,000. The surprise number gave way to a ‘wow’ moment, and the stock market soon rallied to new all-time highs.
Inflation is already here. It is in the form of assets the Fed has wanted to inflate. It has not yet shown up in assets the Fed does not want to inflate. The Austrians were right.
On Friday, the DJIA closed at 18516.55 to set a brand new all-time high; this after plummeting by 611 points to 17400 points only ten trading days earlier, when the Brits unexpectedly voted to leave the EU – an outcome that before the referendum was predicted should...
Below we show two charts for the Russell 2000 (RUT) that tell us this is a very important price juncture for this small cap stock index. Prices sit at two critical intersections this weekend: They sit at the top boundary of a large declining trend-channel from mid-...
July 16, 2016
Pretend you’re running a corrupt government and something big and scary happens in another part of the world. Brexit, for instance. You’re quite naturally worried about the impact on your local economy and political system. What do you do?
Our research continues to argue that the current record rebound in gold stocks will continue. Every time we’ve predicted a correction, the weakness in the sector has been only a fraction of what we expected in both price and time. New bull markets that follow epic...
Nice, France weighs heavily and brings home the point, tomorrow is promised to no one. The tragic mass-killing of Bastille Day celebrants in Nice, France may not have been a planned terrorist attack, but its consequences are no less extremely sad and equally...
Gold sector is on a new major buy signal. Cycle is now down. Investors can cost average in at the next cycle bottom. Silver is on a long term buy signal. Short term is on buy signal. However, silver is vulnerable to a multi week correction which is long overdue.
July 15, 2016
Technical Analysis of The Markets Via Videos.
Gold’s mighty new bull market this year has been amazing, the result of heavy buying by investors and speculators alike. But these latter traders have pumped so much capital into gold futures that this metal now faces a record selling overhang. Since the hyper-...
Melt-ups precede a major stock market crash, and by all appearances we may be in a melt-up right now that could cause a stock market crash in 2016. First, a small bit of euphoria kicked up permabull adrenaline in the US market when Brexit didn’t make the American...
The very first word anyone ever saw on a circulating United States coin was the word “LIBERTY.” From half-cents to silver dollars, each featured the likeness of an unnamed woman. The images varied, thanks to different engravers, but together they became recognized...
We will start with a quote that is sometimes attributed to Sir Winston Churchill, the British Prime Minister, who led Britain during the Second World War. “If you’re going through hell; keep going” With the enemy at the gate Sir Winston Churchill didn’t have much...
For the last several months, and, in fact, for the last several years, I have been writing how I take exception with the common perspectives in the metals world. The great majority of metals enthusiasts and analysts were suggesting that a stock market crash was...
July 14, 2016
Per Deutsche Bank Research: Currency forecasts point to potentially significant declines in international returns (i.e. lower performance in foreign currencies). “When left unhedged, currency exposure can have potentially negative effects on both the risks and...
Massive virus attack sent my main computer for repair limiting my posting this past weekend. However, I have been able to get my Point and Figure charts done -- and here I show the gold and oil charts. They are going in different directions.
Summer vacation is here -- and the whole global family has arrived at Central-Bank Wonderland, the upside-down, inside-out world that banksters and their puppet politicians call “recovery.” Everyone is talking about it as wizened traders puzzle over how stocks and...
July 13, 2016
A recent IMF study estimated that the profits of the big banks in the United States are almost entirely due to the government sponsored backstops. It’s not just bailouts, but also cheap credit, and judicial negligence.
When people use the term "money," it usually refers to a unit of currency used in the transacting of business and commerce. A woman works cleaning houses for a week and gets paid in a number of currency units and then goes to the supermarket and exchanges those...
After 4 years of getting trounced, bulls have learned to be quite skeptical and gun shy. This is what a larger degree correction does to the market psyche, as it builds the “wall of worry” for the next bull phase.
July 12, 2016
It’s been a stellar six months for gold investors. The yellow metal has surged 28 percent year-to-date, its best first half of the year since 1974. And now there are signs that the rally is just getting started.
Since its discovery many centuries ago, gold has managed to maintain its relevance and stature to this day. Used to make royal crowns and other valuable items, the value of gold has been high as from its discovery days. The Greek scientist Archimedes (287-212BC),...
Gold stocks continue to take out key highs, but in the big picture, the upside action has barely started.
The oil-to-gold and oil-to-silver ratios declined in the previous week, invaidating earlier breakouts above important supports, which suggests further declines and doesn't bode well for crude oil as lower values of both ratios have translated into lower prices of...
Talk about diversification comes cheap. Actually diversifying one's portfolio is far more difficult. We have been preaching for some time that in an era where both stocks and bonds may be expensive, investors may want to embrace alternative investments. I have been...
Gold is testing its 2011 high in Australian dollar (A$) terms. The A$-denominated gold price (gold/A$) made a correction low in April of 2013, spent about 18 months forming a base and then resumed its long-term bull market in late-2014. It will probably soon make a...
The best performing precious metal for the week was platinum, up 3.38 percent and marking eight straight trading days of gains. China has seen an 11 percent jump in auto sales through May, spurred by a tax cut on purchases.
July 11, 2016
Here we are at the halfway point of the year, less than two months away from the Rio 2016 Olympic Games. As a group, commodities are the top performing asset class, beating domestic equities, the U.S. dollar and Treasuries.
Silver out performs gold as both rise with Treasury bonds, which are in turn rising with stocks, as Junk bonds hit new recovery highs while USD remains firm as inflation expectations are out of the picture. This is highly atypical, maybe even unprecedented.
