Monday, June 08, 2020
Gold Stocks Healthy Upleg / Commodities / Gold and Silver Stocks 2020
By: Zeal_LLC
The gold miners’ stocks just rolled over into a correction, raising concerns about the staying power of their massive post-panic upleg. These higher prevailing gold prices have driven very-strong fundamentals at the gold miners. But they are entering the seasonally-weak summer doldrums. And current sentiment and technicals play major roles in governing when uplegs remain healthy or ready to give up their ghosts.
The GDX VanEck Vectors Gold Miners ETF remains the leading and dominant benchmark for this small contrarian sector. Its $14.3b in net assets this week were a colossal 33.2x bigger than those of its next-largest 1x-long major-gold-miners-ETF competitor! GDX’s only real rival is its little-brother GDXJ mid-tier gold-miners ETF, which is only about one-third of GDX’s size. The GDX gold stocks have sure had a wild ride.
Normally the major gold miners of GDX leverage material gold moves by 2x to 3x. Gold stocks’ excess gains during gold uplegs are necessary to compensate traders for miners’ big additional risks on top of gold-price fluctuations. These include operational risks at individual mines, geopolitical risks in countries hosting gold mines, financial risks from hedging and currency fluctuations, along with many other risks.
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Monday, June 08, 2020
This Is the End of College as We Know It / Companies / Education
By: John_Mauldin
May was supposed to be a time of celebration. Normally, it’s when students across the country graduate from college and prepare to enter the “real world.”
This year was different. Coronavirus has shut down most colleges and universities. Last month, it was reported that 9 out of every 10 students in the world stopped going to school. That’s about 1.5 billion kids!
It’s anyone’s guess when colleges will reopen. But one thing’s for sure: the US university system will never return to its old glory.
Unlike airlines, hotels, and cruise ships, many colleges will NOT bounce back after coronavirus fades away. While they might not admit it, many colleges have already shut their doors for good because their business model never made sense in the first place.
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Monday, June 08, 2020
Will Great Unlock Push Gold Prices Down? / Commodities / Gold & Silver 2020
By: Arkadiusz_Sieron
As Great Lockdown was positive for the gold prices, the Great Unlock will be bad, right? We invite you to read our today’s article about the Great Unlock and find out whether it really must be negative for the gold prices.
It’s all government’s fault, right? After all, the Great Lockdown was introduced by the federal and state governments introduced, wasn’t? Well, not quite.
Before I will explain why, let me clear one thing up: I’m a liberty lover and I’m skeptical about the government regulations. And the economic shutdown was obviously untenable – the only reason to shut down the economy was to buy some time to prepare the healthcare system for better handling of the epidemic. So, it’s good that the Great Lockdown is ending.
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Monday, June 08, 2020
Silver/Gold Ratio Hits Target; About Those Inflation Indicators / Commodities / Gold & Silver 2020
By: Gary_Tanashian
The NFTRH plan is and has been that the gold mining sector, due to the fundamentals implied by the handy graphic below, could eventually lead a world full of inflatables higher. The miners, leveraging gold’s out performance to most everything else during liquidity crises and even deflation, move first and draw in the inflationist bugs later. If the macro goes inflationary the miners will likely continue to perform well (ref. the 2003-2008 period) but would no longer be the go-to sector.
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Monday, June 08, 2020
LOCKDOWN 2020: Everybody Was Kung Flu Fighting / Politics / Pandemic
By: Jeff_Berwick
Suddenly, we’re not "in this together" anymore.
Suddenly, it’s "every man for himself".
Especially when it comes to deliberately destroying old ladies’ shops in the name of Anarchy!
Larken Rose, that "angry white guy with a gun", says it best:
"One common misconception about anarchy is that it means "every man for himself" or "survival of the fittest," where everyone has to be selfish and self-sufficient, where there is no real cooperation or organization, and where people all behave like violent, selfish animals."
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Monday, June 08, 2020
Think Coronavirus Caused the Stock Market Crash? These Two Charts Beg to Differ / Stock-Markets / Stock Markets 2020
By: EWI
Just about everyone thinks the coronavirus pandemic slammed global stock prices in February and March. Entire countries shut down; businesses closed up shop; unemployment soared. People stopped spending money beyond the essentials, so conventional wisdom would indeed expect stocks to slide as a result. Yet consider the below chart of the Shanghai Composite, China's primary stock index.
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Monday, June 08, 2020
Russia: How Financial "Complacency" Morphed into "Crisis" / Stock-Markets / Russia
By: EWI
It's been a tough year for Russia financially.
Of course, there's been the big collapse in oil prices, plus -- just like many other global stock indexes -- Russian stocks are well off their highs.
That's quite in contrast to 2019, when the RTSI index, a U.S. dollar-based index of 50 Russian companies, climbed 29%.
Shortly after registering that performance, Elliott Wave International's January Global Market Perspective, a monthly publication which covers 40-plus worldwide markets, showed this chart and said:
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Monday, June 08, 2020
The Effects of the Economic Shutdown on the UK Gambling Industry / Companies / Gambling
By: Submissions
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Sunday, June 07, 2020
Gold, Stocks & The Pandemic: A Powerful Contracyclical Play In Action / Commodities / Gold & Silver 2020
By: Dan_Amerman
While the use of gold to protect against inflation is well known, it has other investment attributes that are potentially even more valuable, and this is particularly true in times of crisis.
In this analysis, we will examine the relative performance of gold and stocks (as represented by the S&P 500) between early February and late May, as the coronavirus pandemic and the resulting economic shutdowns transformed global economies and markets.
The short term relationship that we will find is an almost perfect match with what fifty years of financial history shows us is perhaps gold's most valuable investment attribute over the long term, which is its contracyclical relationship with stock prices.
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Sunday, June 07, 2020
A Huge Silver Rally Is The Next Step In The US Dollar Long-Term Cycle / Commodities / Gold & Silver 2020
By: Hubert_Moolman
The US Dollar Index is getting close to the breakdown that will signal a massive Silver rally. A type of Silver rally that was last seen in the 70s, when Silver went from around $5 to $50.
The market has virtually completed a full cycle to set up the next Silver rally. See this long-term US Dollar Index chart:
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Sunday, June 07, 2020
Gold & Silver “Washout” – Get Ready For A Big Move Higher / Commodities / Gold & Silver 2020
By: Chris_Vermeulen
Gold and Silver moved lower early on June 2nd and 3rd. Our research team believes this is a “Washout Low” price rotation following a technical pattern that will prompt a much higher rally in precious metals. This type of washout price rotation is fairly common before very big moves after Pennant/Flag formations or just after reaching major price trigger levels.
With Gold, a sideways Pennant/Flag formation has been setting up near our GREEN Fibonacci Price Amplitude Resistance Arc. We believe the downward price rotation recently is a perfect setup for skilled technical traders to take advantage of lower entry price levels. The GREEN Fibonacci Price Amplitude Arc will very likely be breached over the next 5 to 10 trading days and the price of Gold should rally well above $1850 in the process. We believe this Washout Rotation is a process of running through the Long Stops just below recent price activity that will end with a defined upside price rally over the next 2 to 5+ weeks.
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Sunday, June 07, 2020
When People Riot, Should We Call Military or Gold? / Commodities / Gold & Silver 2020
By: Arkadiusz_Sieron
Could 2020 end, please? The pandemic is not over and the US suffers now from mass riots across the country. They could aggravate the coronavirus crisis and increase the demand for gold.On May 26, a black man, George Floyd, was killed by the police in Minneapolis, Minnesota. During his arrest – he allegedly used earlier a $20 counterfeit bill in a nearby store – the police officer put a knee on Floyd’s neck on the ground, although the arrestee was not aggressive and repeated several times that he could not breathe.
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Sunday, June 07, 2020
Precious Metals Complex Big Picture / Commodities / Gold & Silver 2020
By: Rambus_Chartology
From the March 23rd low in the PM complex we’ve enjoyed the first easy part of this rally that should have many years to run yet. Every bull market will consist of an impulse move followed by a consolidation period, rinse and repeat until the bull market ends with some type of reversal pattern. Normally in a secular bull market the turning points will generally be very large to buildup the energy to advance to new highs.
The current 2nd leg up in the secular PM complex bull market actually began in January of 2016 after the first leg up ran from 2000 to 2011. There was a cyclical bear market within the secular bull market that ran from the 2011 high to the January 2016 low. It’s important to understand which part of a bull market one is in as to not get confused on what may lay ahead.
Tonight I would like to show you some long term quarterly line charts that I use when looking for big chart patterns that usually show up at important long term reversal points that can take years to complete. I usually only post these charts just a couple of times a year as change comes very slowly but when change does come it’s important to pay close attention because the change usually represents a major trend change.
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Saturday, June 06, 2020
Stock Markets Failing to Give Another AI Mega-trend Buying Opportunity / Stock-Markets / Stock Markets 2020
By: Nadeem_Walayat
My analysis of Late April concluded in expectations for a correction to about 21,000 by the 3rd week of May.
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Saturday, June 06, 2020
Is the Stock Bulls' Cup Half-Full or Half-Empty? / Stock-Markets / Stock Markets 2020
By: Paul_Rejczak
Neither on Monday, nor on Tuesday did we see strong volume, but prices rose regardless –is it time to bet the farm on higher stocks right next? As quite a few yesterday-mentioned reasons to be cautious were resolved bullishly, the buyers' case got stronger.
S&P 500 in the Short-Run
Let’s start with the daily chart perspective (charts courtesy of http://stockcharts.com ):
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Saturday, June 06, 2020
Is America Headed for a Post-Apocalyptic Currency Collapse? / Politics / Pandemic
By: MoneyMetals
Just when it seemed as though America may be turning the corner after months of lockdown… just when it seemed as though we were on a path to reopening and gradually returning to normalcy… just when the prospects of panic-induced social unrest seemed to be behind us…
…America’s cities erupted into flames.
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Friday, June 05, 2020
Potential Highs and Lows For Gold In 2020 / Commodities / Gold & Silver 2020
By: Kelsey_Williams
DOWNSIDE POSSIBILITIES FOR GOLD PRICE
There is a correlation of gold’s increasing price relative to the declining value of the US dollar. The chart (source for all charts) below shows this inverse relationship clearly…
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Friday, June 05, 2020
Tying Gold Miners and USD Signals for What Comes Next / Commodities / Gold and Silver Stocks 2020
By: P_Radomski_CFA
The precious metals sector was likely to decline, and it did exactly that. And based on what we just saw, it’s likely to decline even more.
Once again, the situation yesterday and so far today developed quite in tune with what we wrote yesterday, so today’s analysis will take form of a broad update. Let’s take a look at the GLD ETF. In yesterday’s and Monday’s analyses, we described it in the following way:
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Friday, June 05, 2020
Rigged Markets - Central Bank Hypnosis / Stock-Markets / Financial Markets 2020
By: The_Gold_Report
Sector expert Michael Ballanger bemoans the panic-inducing influence of politicians and the influx of "counterfeit currency" from central banks on the money and commodities markets.
One look at the chart of the U.S. financial markets against the backdrop of economic paralysis and suffering, and one is immediately filled with a myriad of emotions. Sympathy for those that have been afflicted by the most recent pandemic; fear for the families whose primary breadwinner is now unemployed; confusion toward the proper course of action going forward; and finally outrage at the abject timidity of our citizens in responding to the orders laid down by these insipid politicians in response to the crisis.
As the welfare of future generations hangs in the balance, its tentativeness the direct result of government ineptitude, I keep asking myself a critical question: "When did the backbone of our people turn to mush?" If someone holding political office had told my grandfather to stop ploughing his fields or tending to his livestock because a sickness was spreading throughout the community, that charlatan would have wound up with buckshot adorning his gluteus maximus. How dare any group of elected bureaucrats ordain the shutdown of an economy? Telling citizens to "stay home" and "avoid contact" was tantamount to telling my grandfather to cease and desist in providing for his family. That he should shutter the ploughs and the reapers and the milking stations, that his sons and daughters need not feed the chickens or slop the hogs because the government was going to "protect them" from harm? Well, not only would promises like that go unheeded by the generations that preceded us; they would be treated with the utmost of distrust and the vilest of response.
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Friday, June 05, 2020
Gold’s role in the Greater Depression of 2020 / Commodities / Gold & Silver 2020
By: Raymond_Matison
The most important measure for an economy, its recovery or advancement is employment - that is, the availability of good-paying jobs. When citizens have jobs, they earn an income with which they can pay for their needs, and pay taxes to the government for its needs. So jobs and income, are the key determinants of a healthy, modern consumer-driven economy. Over the last several decades business owners, globalists and bankers utilized foreign wage, borrowing cost, environmental and regulatory advantages to close production facilities in the U.S., moving thousands of factories and jobs to Asia. This job migration decision can be reversed at any time; however, it will take as many decades to bring jobs back to the U.S. as it did to move them overseas. Therefore, it will take many years to reverse this unfortunate U.S. worker-discriminating decision. As an unfortunate result, we are now to experience the consequences of a depression (a long lasting recession) instead of a recession.
Some economic observers and pundits have already publically stated that we are now in an economic recession. Official acknowledgment would require the passage, retrospectively, of two quarters of negative GDP growth to confirm this. However, considering all that has transpired since the beginning of this year in our country, admitting that we are now living in a recession is not a particularly bold projection.
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