October was at it again last week. After Wednesday’s close, the S&P 500 Index, Dow Jones Industrial Average and small-cap Russell 2000 Index had all erased their gains for 2018, while the tech-heavy NASDAQ Composite dipped into correction territory.
Gold Editorials & Commentary
October 29, 2018
And so it happened. Gold stocks closed the week below the neck of their inverse head-and-shoulders pattern, while the USD Index closed it above its own inverse H&S. The implications thereof are strongly bearish for gold, silver, and mining stocks and we can say...
The best performing metal this week was palladium, up 2.16 percent as hedge funds boost their net long position to a 7-month high on supply concerns. Traders and analysts in the weekly Bloomberg survey were the most bullish in a month as gold heads for its highest...
It is my privilege now to welcome in Greg Weldon, CEO and president of Weldon Financial. Greg has over three decades of market research and trading experience, specializing in the metals and commodity markets, and his close connection with the metals led him to...
Over the past 20+ years of research and trading in the markets, our team of traders and researchers know one thing is certain, when fear hit the global markets, precious metals react by rocketing higher. We've seen this happen over and over again – even when non-US...
The first part of home storage is just basic home security. Your home does not have to be a fortress but it needs to have better security than the other homes in your neighborhood so that criminals just pick another one. The obvious ones are:
October 28, 2018
The first wave of this correction started at 2941 and stopped at 2710, for a decline of 231 points. After a brief rally to 2817, the second wave started. At the time, I suggested that the trend could be taking the shape of an a-b-c pattern, which is the normal for...
Large precious metals speculators raised their bullish net positions in the Gold futures markets again this week, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on Friday.
Apparently excitable and sufficiently widespread were reports this past week on gold going up such as to generate an email from a valued, non-financial media friend specifically quoting from the Dow wires that "... demand for the haven metal rose through the week...
As we have noted over the many years of the gold sector’s bear market, the gold miners will not rally for real until the real sector and macro fundamentals come into place. Those fundamentals do not include commonly promoted inflation, China/India “love” trades, a...
Deflation seems to be the primary theme in the market as we come to the end of October. The last time the Dow Jones saw its BEV value at -8% was in early July of this year (BEV chart below). It took fifty-three NYSE trading sessions for the bulls to work up to a...
October 27, 2018
Here is our Friday digest of the important news, commentary, charts and videos we were informed of this week. The old Wall Street adage is that they “never ring a bell at the top” but there was a real sense this week that we may have seen a turning point. U.S....
Speculation remains at multi-decade low, but short covering has begun with specs back to net long. A tradable bottom remains in place. GLD is on short-term buy signal. GDX is on short-term buy signal.
October 26, 2018
Here are today's videos and charts:
Gold and its miners’ stocks have proven rare bastions of strength during recent weeks’ market carnage. They are powering considerably higher while nearly everything else burns. The markets’ major sentiment shift is accelerating a young gold upleg, which ought to...
Wait, what?! Isn’t the inverse head-and-shoulders a bullish pattern that was supposed to take gold miners much higher? Indeed, it is. But it didn’t take gold miners much higher and all that the completion of the above-mentioned pattern generated was a corrective...
In January 2009, when bitcoin was released, its value was “basically nothing” ~wikipedia. Eight years later in January 2017, bitcoin was at $986 and in December reached $19,783, an astounding one-year rise of 1,900 %, outperforming the 1,500 % historic increase in...
Banking on a Reversal - A healthy banking sector is a requirement for a healthily functioning economy. We saw back in 2008 what can happen when banks gorge on debt and lend recklessly to highly geared market participants. It never ends well. Banking stocks also have...
Easy come, easy go. AMZN stunned traders with a 135-point gain Thursday from the bombed-out depths of Wednesday’s selloff. Then, after the close, the stock reversed steeply, shedding 180 points and sucking tens of billions of dollars from stock markets in the U.S....
For the last three years and during the 64% rally in the S&P 500 from 1800 to 2940, many analysts were quite bearish, expecting the market to top out each and every week. They continued to point towards the “risks” in the market, all the while helping develop...
Elijah Johnson invited me onto the Silver Doctor's precious metals podcast to discuss why mining stocks are historically cheap and why an expected crash in the stock market will be accompanied by a soaring precious metals sector. We also discuss why Trump is beating...
October 25, 2018
The US$ index is breaking higher. It’s trading at 96.41 as we pen this. A daily close above 96.61 marks a new 52-week high and puts the dollar in position to eventually retest its bull market high at 104. If this strength continues then the relief rally in precious...
In light of the volatile market action since my last report two weeks ago I am dedicating this report towards the big picture view. I have been presenting the post bubble contraction (PBC) model to you all year long, however I am convinced many still don’t...
I have had a request from Mrs Macleod to write down in simple terms what on earth is going on in the world, and why is it that I think gold is so important in this context. She-who-must-be-obeyed does not fully share my interest in the subject. An explanation of the...
600 points. Dow plunged so much yesterday. The S&P500 and Nasdaq also suffered. The persistence of losses is disturbing. Should then gold shine?
When we see a large market move occur which surprises you, what do you do? The first thing you likely do is go on the internet to read the financial news so that you can “understand” what just happened.
The gold price has been rising over the past month, driven by investors seeking safe-haven assets as the stock market sells off sharply. On the technical chart, we can see a bottoming pattern followed by a price spike higher. I am now looking for gold to break above...
October 24, 2018
It is my privilege now to welcome back David Smith, Senior Analyst at The Morgan Report and regular contributor to MoneyMetals.com. David, it's been too long. How are you my friend?
Gold rallied yesterday, right before its turning point, and reversed its course before the end of the session. Precisely, even before the US session started. Miners reversed as well, after failing to move back above the late-2016 bottom.
The global economy carries debt of about $250 trillion, an impossible sum to repay, which suggests default, devastating inflation, and probably both.
