A focus on the conventional markets – Is the true market top in the future?
Gary joins a recently returned home Cory to discuss the conventional markets. With a number of analysts calling for a market correction these same people are also saying that after the correction the markets will move past the recent highs… We tend to agree.
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Good thoughts on the general markets Gary, and my thoughts are that the decline will just be a daily cycle low,and then the intermediate low will likely be in the fall.
Agreed..get to work Cory — you slacker…:)
funny.
In all seriousness Cory, we appreciate all that you do, and I was surprised you were calling in remotely as often as you did overseas and on your honeymoon. It showed a real commitment and interest in the editorials and that the show must go on.
Chris Temple did an awesome job guest-hosting, so even though we’ve said it before, thanks again Chris!
Al has been sounding better and better each day, so hopefully he gets some rest and we’ll hear “for lack of better words….” again next week 🙂
I’ll second that Shad. Chris was really great and put on a good show.
Absolutely!
But lets not forget we are still kind of mad at Cory. The guy put on a wedding wingding so exciting he almost killed Al……Man, can those guys party or what!
Our illustrious former Fed Head, Bernanke, joined a $25 billion+ hedge fund–no conspiracy theory here or revolving door. Obviously, this is the payoff for savings his Wall Street cronies at the expense of everyone else–literally! . The Fed and their cronies have destroyed the “free” market beyond recognition in that price discovery is stocks, bonds and commodities no longer exist.
JP Morgan reported $billions in profits in what some would describe as a dollar carry trade in the treasury market. Free money from the Fed to buy debt to collect a couple of points of interest….and you can beat they’ll know before the rest of us when the jig is up.
Yesterday, Doc explained that the precious metals market is essentially structured to fleece retail investors–obviously big hedge funds are involved in these gyrations, just look the the thin volume in PMs. Every Warren Buffet called .hedge funds, like the one Bernanke joined, as financial weapons of mass destructions. And where are the regulators tat are suppose maintain integrity in the markets? They’re cashing ijn, just like Bernanke.
Unfortunately, at some point is whole mess is going to unwind.
Good to hear your voice again. Hope your honey moon was terrific!
that was for Corey!
Cory!
sorry about the misspelling
It’s OK….just tell him you were confused… 🙂
Gold has been moving up when the dollar is up for the past days….and down when it goes down. Not sure if that means anything yet but the relationship might be changing as it often does.
Honestly the ten is the only USDX component that matter for gold and commodities, and the yen has been weak against the dollar the last month or so. Get ready for the BoJ to drop another QE bomb on the gold market soon. Gold and silver are coiling up for a big move one way or the other though.
Also meant to say yen has been strong against the usd the last month or so. Another round of Japanese QE could reverse that big time.
All eyes on the yen. If they do an even bigger QE it could put the hurt on gold and sends stocks to the moon.
Isn’t their announcement from the Bank of Japan slated for the end of this month on the 30th Spanky?
It will be interesting to see how big their QE program may be.
Good thing I sold my XOP above 56 right near the top and should have sold all my other stocks too. Gold is looking dead even with a down market so I got rid of my small gdx position. I have sold all the techs I own and have one left to sell. The S&P is having trouble getting above the 50 day so I would rather hold cash after some good gains.
Sound like you are in profit taking mode Paul L. Are you expecting declines in Oil, Gold, and the general markets then?
I was thinking if the dollar is supposed to be going down, that Oil & Gold would do well in that environment, but would be curious to hear your thoughts.
Gold is looking weak even with the markets falling hard. I took some big profits yesterday when oil hit 57 and I think it needs to correct to around 52.50 to 54 at least before it continues higher but it could overshoot to 50. The xop chart was stretched up quite high. It has gone from 47.5 to 56 in just a month. S&P could head to around 2050.
Thanks Paul L. Very good thoughts on the oil price and I’m waiting for a pullback as well before going back into related stocks and ETFs. Have a great weekend!
Sold my apple too as it could not hold the 50 day average.
Get well soon there Al. Really kicking myself for not taking 11% on gold yesterday. I got greedy. Have to wait it out. Still got a good bear position on gold as plan B.
Looks like oil topped yesterday and that could drag the whole market down.
Like I mentioned the other day…..Keep your eyes on Rice as it plummets towards 2009 support levels. We are closing in fast and it will be interesting to say the least if it falls below that support.
http://www.nasdaq.com/markets/rice.aspx?timeframe=5y
Also put sugar on your radar as it too drops towards 7 year lows at 10.00
http://www.nasdaq.com/markets/sugar.aspx?timeframe=7y
To me these things are important for what it may be telling us about commodities in general….and more specifically the fortunes of gold and inflation expectations.
If I told you silver needs to revisit 10 dollars would you be freaked out?
http://www.nasdaq.com/markets/silver.aspx?timeframe=7y
I would be surprised if Silver got down to $10 Bird, but anything is possible.
At that level, many mines would be underwater, and I’d pick up a stack of Silver Eagles or Canadian Mapleleafs for $10 any day of the week. Sounds like a good buying opportunity, but I’m a buyer of physical silver at any price under $14.
I will be buying right along with you if that day comes. What a deal!
Bird and Shad,
I think the IMF coming out in the last few days and openly announcing that the world is about to experience another 2008 liquidity crisis event should be taken very seriously.
These protected and entrenched elite that pull all the levers and make all of the decisions in these globalist banking institutions like the IMF and BIS etc., don’t telegraph such devastating news like this with out such an event being a high probability.
Further to this discussion is a Dave Kranzsler article that was published in the last 24 hrs that my be some of his finest work to date.
Dave pontificates about Reverse Repos and the FED’s use of those arcane instruments in trying to stop a massive derivatives meltdown behind the scenes as we speak.
His article is a must read IMO.
The implications of another global liquidity crisis the magnitude of 2008 or greater, coupled with a derivatives meltdown which has already started has as expected initiated execution triggers to payout policy holders of counter-party insolvency contractual breaches. The 800 lbs gorilla in the room is these instruments are effectively fraudulent unpayable insurance contracts.
Combine those two extremes with the mountainous global debt-loads levels and another perfect storm could be just around the corner and is so serious that the much anticipated, but denied, reset protocols may finally be triggered due to a complete loss of control and confidence within the system.
I’m afraid the commodity complex is not done taking it on the chin if a 2008 repeat is in the cards. Which means even lower prices and a swath of new bankruptcies across the sector will be unleashed.
V
Thanks Vortex. I had not seen that article but dug around and came up with one version from the Telegraph. I really hate it when they issue gloom warnings like that though and don’t offer any solutions.
Its like they just said a freight train is coming and “so sorry chap but you don’t have time to get out of the tunnel alive”. So what are we supposed to do? Ambrose is talking about a collapse of the insurance industry due to its interconnectedness and the prospect they face mark to market rules during a crisis.
This is so screwed it ain’t funny anymore. Maybe I will buy some gold after all.
IMF tells regulators to brace for global ‘liquidity shock’
http://www.telegraph.co.uk/finance/economics/11538509/IMF-tells-regulators-to-brace-for-global-liquidity-shock.html
Welcome back Cory! Hope you had a great trip and honeymoon…..
Now get to work 🙂