Tuesday’s Market Close Gets Personal
Click download link to listen on this device: Download Show
Let’s see where I am in about six months.
I will say that over the years we have done okay.
Best to you JJ!
Big Al
Al and JJ: I recommend that you listen to this interview of Marc Faber. Ignore Prechter, he is and has been more wrong than right because what is going to happen requires foresight not hindsight.
http://www.youtube.com/watch?v=aGuz7aQVgIQ&feature=em-uploademail-new
Clay I gave it a listen, global currency devaluation is taking place no doubt…..thanks for the link……………Faber is a funny guy, was recently asked about inflation, his answer, inflation yes! my wine and hookers are costing me alot more…..not thats a true street level opinion
The real culprit with the financial system is The Federal Reserve, before 1913 when the economy went sour there would be a depression, the system would be cleansed within 2 years. But since Woodrow Wilson was conned by JP Morgan and the other bankers into setting up The Fed, other than the 1930’s depression the system has been managed and not allowed the market forces that say HEH you don’t get that money if you don’t qualify or if you’re business model no longer fits the criteria.
By the way Wilson was an idealist but just before he left office he realized that this was his biggest mistake during his presidency, he was a good man but one that could be led astray by the dark forces but since then only Dr. and Congressman Ron Paul has had the guts to point out where America has made it’s biggest failure but one that can be corrected by a bold leader that will not appear until the electorate felt the pain for change. Yours Truly, DT
Really how stupid is any system that is so important to the financial functioning of the entire world to be at the whimsy of one man whether his name is Greenspan or Bernanke, especially when this person comes from the world of academia and he has control over the functions of business.
The best of times for The Western World were when the businessmen was the toast of the day, that is why I would support Mitt Romney over the other guy who has never had to face the real world. I have worked in both and believe you me it is as different as night and day. DT
Yes it is, Machine Gun, yes it certainly is!
Big Al
Good points, Machine Gun!
Big Al
I don’t agree that Woodwrow Wilson was a good man. He started the income tax, the Fed, got us into WWI, and did away with senators being elected by their state legislatures.
Wilson was a good person in that he wanted a peaceful world and thought that man could come together and end war, so he started The League of Nations. This was an idealist dream but a terrible failure, we have witnessed this with the formation of The UN after WWII, but we all know that theory usually has little place in the real world that’s why academics who control the fed although they study cause and effects are failures when it comes to application. DT
Any person who wants a peaceful world, Machine Gun, is my kind of person.
Big Al
Woodrow Wilson did as he was told.
The League of Nations was merely the precursor to the United Nations.
I agree with Matt R. Wilson said the following BEFORE he signed the Federal Reserve Act. Not a good guy.
“We have restricted credit, we have restricted opportunity, we have controlled development, and we have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world. No longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of men.”
Hi Mathew, when I read your last paragraph Wilson has realized what has happened and it’s too late to do anything but try to warn others. The money men are in full control by now. It’s like Eisenhower trying to warn his nation of The Industrial Military Complex, he knows they are in control.
I do agree with you that the money men were already in control. You may also be right that he was generally decent. I am no expert on Wilson, but I have my doubts.
Wilson’s biography where that quote is supposed to originate was published BEFORE he signed the Fed Act….gold investors are so easy to fool..
“We have restricted credit, we have restricted opportunity, we have controlled development, and we have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men.” -Woodrow Wilson, The New Freedom: A Call for the Emancipation of the Generous, page 201, 1913
Did you not see my post above??? You’re just a couple days behind, but that’s okay.
And the masses who don’t buy gold AREN’T easy to fool?! You should get the Stupidest Comment Award.
People always think of totalitarianism as boots on the ground and a military that runs the state under one leader but financial totalitarianism is far more pervasive. DT
And far more effective, Machine Gun!
Big Al
We all like to talk about gold but during the 1930’s gold was pouring into the US of A because despite what was happening in other countries the US was still a creditor nation and the world had to ship their gold to them because they had the industry and money only meant something if it was in precious metal or backed by such in order to guarantee their trade imbalances.
Now gold has sought safe haven somewhere else because The US has lost it’s dominance in manufacturing and again I feel The Fed is to blame, they made money cheap to borrow which allowed China to control manufacturing while Americans sat at home buying Chinese goods with their phony capitalism.
What a great point, Machine Gun.
Very obvious and a point that I have not thought about.
Big Al
Al, the trend for PMs remains sideways to down. I’ve said for some time that I wouldn’t be surprise if we see a move up in the dollar. Since I said that about 3 weeks ago the dollar has traded sideways but it now appears to be ready to make a move up. That would be another factor in pressuring the PMs lower. Another short-term positive for the dollar and negative for the PMs would be a Romney election which wouldn’t surprise me. The coal stocks have bottomed and are starting to move up in all likelihood anticipating a Romney presidency. If Obama wins, I’ll probably exit my coal stock position as fast as possible.
It was too tough to call for months, but this Benghazi garbage is going to lose it for Obama. Only 7 days to go anyways, but I’d plan on the general market strengthening a little on a Romney win. Agree that will be a small negative to metals. It will be interesting to see what a Romney Admin’s first year budget deficit will be projected at.
John W, I hope you are correct regarding Benghazi and the election results. I’m not so sure. The public is more involved with the Storm tragedy right now rather than paying attention to or questioning the events of Benghazi. The MSM sure isn’t going to discuss it.
Jody D
Good to hear from Jody D.
You could be very right!
Hello Marc!
Hope all is well with you and yours!
Jody D
I would certainly not jump to that conclusion quite yet, John W.
We will see,
Big Al
Well, I’m jumping to that conclusion because someone once told me to take a flying leap.
Lot of Romney support here in Florida.
John W.
I am also in Florida. I work with a bunch of Obama supporters.
Doesn’t matter what info you present, they have all ready made their minds up and have voted early. The ads stating Romney will take away/change drastically the Medicare and Medicaid benefits have many believing that Obama is the only way to vote. These are the same people who get their news from the MSM and don’t bother to fact check the statements. Oh well, I will be glad to get this over with. I can’t stand the ads anymore. When I hear Obama’s voice, I either turn the radio off or change the TV channel immediately. I have little tolerance for stupidity as I get older. 🙁
Jody D
That Jody D has definitely been my experience with most of my liberal friends. At least on this site we listen carefully to everyone!
Big Al
Hi Richard, I don’t think O…. will win but there are a plethora of tricks out there and I don’t want to lose money either. DT
Ever stop and think about the fact, Machine Gun, that Mr. Romney is on record as saying just prior to Sandy that he will get rid of Fema.
Probably not a bad idea, but his timing could not have been worse!
Big Al
Hi Richard, within the last 5 years two times the US$ Index rose Gold did aswell.
Dec 09-June10 the $ rose from 74-88 and gold rose $200
May 2011-Sept the $ rose from 72-79 and gold revalued higher by $500 making its high (so far)at the sametime the $ was topping
The teeter-totter effect is not a certainty between the $’s value and golds.
One issue the market won’t know the effect until the results is a global reaction to who wins the election….who’s to say an Obama win wouldn’t send the US$ alot lower as the “easy money” ie. QEasing continues….but who’s to say global longs of US$’s wouldn’t sell if Romney wins, uncertainty of new leadership.
Momentum is everything and next weeks election (if its not delayed) may produce the biggest market knee-jerk reaction we’ve seen in awhile and watching to see which way the momentum flows will be key to trading positions.
Good Luck! ….to you
JJ, you’re correct; the next week to 2 weeks will be dicey. I’m not going to buy much before the election, and I certainly won’t add to my coal positions.
How right you are about the dollar. And let’s not forget that when the usdx was at the same level back in July of 2007 – just over 80, gold was just 680 and silver about 13. So much for it’s utility in the big picture.
Although it can work out in the short term, knee jerk investing is not the way to go. I don’t care which goofball wins, the miners in particular are going to fly. It’s time.
I agree, especially when the PMs bottom out on this move down—-I figure about 4 weeks from now. The PMs usually perform well in November but this year might be an aberration.
Great comment about the goofballs Matthew!
Thank you,
Big Al
I hope so…”professor”….I hope so!
Good luck to all of us, JJ!
Big Al
Regarding the coal stock positions, Doc, I could not agree more!
Big Al
Doc, I sound like a broken record, but I am astounded as to the shorts on the PMs, particularly Silver. Starts to make me wonder what it will take to crack the paper market that controls “price”. The banks have deep pockets and determination.
Brad, you’re correct. The COT recent weekly report wasn’t too positive for the PMs. That’s another reason along with chart indicators that signal we could move lower—I wouldn’t be surprised if we move another $100.00 down for gold. If that happens, it’ll form a large head/shoulders formation.
Gold seasonals starting to look good soon:
http://www.safehaven.com/article/27503/gold-seasonals-and-stochastics
Thanks for the link, Paul L!
Big Al
Because you cannot see it does not mean it is not there.
Tonight while on the porch……I could not see 1 star.
But I know the satrs are all there.
It is not an act of faith for me to know the stars exist.
The stars are secure in the heavens becuse the reach of man has yet to find a way to interfere. I have faith in things that both require and warrant faith.
Why hide tangible things that should be revealed,
Unlike tonights concealed stars some tings are concealed because they do not exist.
Good Afternoon Big AL AND ALL:
First of all, great input from everyone…thank to one and all. PLEASE read Jim Sinclair’s RUMOR control at JS MINESET. This is a really good musing on GOLD CONFISCATION and the absurdity of it happening. Just like BIG AL and all of you….I am very glad and GRATEFUL that we have Jimmy Sinclair in the pro-PM fold..the guy is simply awsome and very, very generous of his time and TALENT. Gold CONFISCATION DOESNT fit in this current PRO-QE paradigm. Cant wait for Jan 2014. We will be sitting pretty with 40% to 60% gains in bullion and pm stocks..bank on it…well kinda of! 🙂
All the best,
Marc
BTW,
I do have my money where my mouth is… a double 🙂
Marc,
Thanks for your references and your positive, upbeat posts!
They are much appreciated 🙂
Jody D
Evening Jody D,
I definitely second your comments!
Big Al
Faith in my opinion, Dennis M, is one of the most important aspects of a person’s life if he/she chooses to accept it.
Big Al
My sons are always lecturing me to get in touch with my spiritual side, when you’ve spent almost an entire life with your nose to the grindstone it’s not easy do but one worth pursuing especially now that I have more time.
check out Crocodile Gold (crk.to) 4000 sq km in Australia of property and 7-8 mil. oz mostly in resources, mining 200k oz./yr in that they bought two operating mines earlier this year; market cap of only 160 mil! forward P/E of 2 on yahoo finance. There is an audio interview from king world news (I believe) whereby the ceo expects to be producing at $700-900/oz. in the near term; as they are closing a low grade mine. Currently they mine at about 2gpt, enjoy and let me know what you think.
Al and Cory,
Unless we know how much was invested into each stock, it really makes no difference what percentage a stock is up or down. Back in the 80’s a friend lost a lot of money due to his stockbrokers recommendations. The stockbroker told him that he also lost “everything”. To make a long story short, in court, it was discovered that the everything he lost was merely $1,100. Get my point? It is important to note asset allocations in terms of a total portfolio.
Richard, I see your trendline calling for a picture perfect head n shoulders on the gold chart at $1600-10 off the May $1526 low but if we get a close today above $1720 the recent low at $1698 could well be behind us.Silver needs a + $32.25 close
The big “if” is an event driven reaction which could be negative taking out $1680 or positive taking out the key $1720 area……without a doubt those trading fx and counting on an Obama win are getting well short just above 80 and long the Euro$ below 129
Pass the popcorn!….all eyes of $1720…..Go Gold!
Gold moving up despite the dollar rising.
Al!! do you realize you are managing a small fund, I have no idea how you do it!!
Good God man you’ve got the balls of a dinosaur and no desire to keep whats left of your hair!…lol!
30 years experience and you hold a position of a twenty year old, I own pm’s bullion which I never trade, well sell, I do buy at my target levels during retracements and I trade 1, one, a single silver producer FR…..that keeps me too buzy…..
OK next photo your wearing a dealers visor pal cause you are MR. Al Roll The Dice Korelin…..your buddy Pete Grandich every tell you the jr space is not investing….its pure gambling.
Al you are a punter…!!…take a bow!!