With the markets inching closer to all time highs is it time for a break-out or a correction?
Chris and Gary join us to chat about the continued move up in the conventional markets. We also discuss the flow of money that has be moving into oil as well as international markets. Is this good or bad for US markets?
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I think the Chinese crash will definitely be felt around the world, but I think there is plenty of emerging markets like India, Thailand, Vietnam, Cambodia, Indonesia, Mexico, Central America, South Amercia, and Africa to absorb some of their growth.
However, it may be enought to tip the US markets into at least a steep correction.
Here is an interesting article on the anticipated correction the US markets and man that refuses to shave until we get at least a 10% correction.
http://jessefelder.tumblr.com/post/116419834455/this-chart-suggests-a-bear-market-could-be-lurking
On the Gold front, some are calling for a double bottom and double rainbows.
http://kimblecharting.tumblr.com/post/106228473266/gold-bugs-double-bottom-could-be-in-play-says
While I don’t agree and think Gold must break it’s old lows around 1130 for the final wash out in sentiment, it is good to look at things from a number of angles and review a diverse field of thought.
FITTS says ….CRASH UP.
expect the unexpected
FRITZ?
Who is FITTS? What is FITTS?
Cathleen Austin Fitts……
solari report.com
you should get to know her work, she was in the ADMINISTRATION OF HOUSING and has a first hand knowledge of the inside workings of the US GOVT.
Thanks but I think life is too short for another American pontificating on the internet.
In the meantime, may I point you towards my pontificating blog 🙂
Yes , by all means, would love to see it……………….THE BOOT. 🙂
But is life long enough for a non-american pontificating on the internet?
Maybe someone from Ireland, Wales, or Scotland?
Maybe someone from Papua New Guinea or Burma would have more insight 🙂
Sorry I meant Myanmar (as technically even though the name stuck Burma ended n 2011). They are very interesting in that they abandoned the concept of GDP (Gross Domestic Product) and have started measuring GDH (Gross Domestic Happiness).
Novel idea.
Is it just me or does Chris kinda look like Chevy Chase in his sig pic? I see gold is range trading again. RRR!
to funny 🙂
Chevy Chase
I’ve heard that before…more often, Dan Ackroyd. Guess that’s what I get for being a faithful SNL watcher back in the day.
Classic comedy. Dan Ackroyd used to crack me up.
Russians never could spell, I should know. Neither could Floridians or Indianans
As was I!
Gary, I am a little puzzled you keep mentioning that the Fed would introduce another round of QE. The Fed Presidents have almost unanimously been warning the markets that rate hikes are in the cards. When exactly we don’t know but QE is the antithesis of a rate tightening cycle. Your idea strikes me as being totally improbable because its so contrary to the message being sent. The other thing…one of the Presidents actually made the remark that the market was making a mistake believing the Fed had their backs. Sorry, i cannot recall who it was now but the idea was being conveyed that market participants were making a mistake becoming complacent and thinking the Fed would always be there with easing to soothe jitters (paraphrasing of course).
Personally, I have just about zero doubts we will indeed see one rate hike this year.
Oh, btw…congratulations. You hit your Nasdaq high and blew right past it. now I have to worry if the rest of your scenario will play out since I have the feeling you are predicting a little gloom once it has peaked.
Nasdaq Suddenly Spikes Above March 2000 Closing Record High
http://www.zerohedge.com/news/2015-04-23/nasdaq-tops-march-2000-closing-record
September could be a rate hike into a falling dollar, but it may spike the dollar and crash the markets.
In that environment, maybe the Fed would counter a market crash/rising dollar with another round of QE. Seems counter productive to me, but so does the Fed.
It will be interesting if a crash in Chinese stocks causes all the other stockmarkets to go down – if it does, it will show the importance of the Chinese market in the wider world economy.
Generally though, I don’t expect to see Japan, Europe, the UK or other Western stock indexes to collapse unless – until – the US markets crash. Despite all the end of the American century stuff sprouted on the neo-con sites the reality is that the US markets still lead the global markets and everyone else follows.
If the DOW / NASDAQ / S&P collapses watch everything else going down like a stack of dominoes.