What is making the markets move so much today?
The first trading day after Memorial Day we are seeing commodities and the US markets move down and the US dollar move up. We hope everyone had a great long weekend but now we have to be aware of future large moves in the markets.
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I seem to recall that the current move is exactly as Gary called it…or said it would likely occur…..
As the charts show the US$ was a buy May 18th and gold a sell May 19th
So now we have R.A. and Gary suggesting a blood bath in gold sub $1000, interesting, at least the chart has one short since May 19th lets see what kind of swing it produces.
Gary, deflation at work around the globe, I’m sure you’ve already read it….wink,wink
Yes we will have a temporary deflation as the stock market moves down into the 7 year cycle low. But it will be very quickly reversed as QE4 starts. That will usher in the final phase of the stock market bubble and the beginning of the next phase of the secular gold bull.
Interesting thoughts Gary, QE1-2-3 sent capital into the US equities but not gold as it peaked and rolled over with QE still in force, perhaps QE4 will as you say drive a parabolic move of global capital into US stocks but not gold as these past 3 years prove big hedge funds prefer equities over the pm’s sector.
An insane amount of QE has been tossed at Japan sending their equity markets racing higher since late 2012 yet the devaluation of the yen has been the major driver behind a lower gold price as a yen chart with gold running in the background clearly shows, interesting indeed!
Question for Gary.
QE1 had positivite effect on gold price but 2 and 3 had very negative effect on gold where gold erased all QEs including QE1 rallies. Why would QE4 have positive effect on gold price as money will be chasing stocks?
During QE3 the bullion banks prevented liquidity from flowing into gold. Once the stock bubble pops then liquidity will flow back into gold and nothing the banks do will stop it.
I just to see my downside target of 1041-1044 hit 🙁
fantastic! murk it.
I’ve been “murking” it for two years, Stewie! Just ask Matthew 😉
Gary keeps calling for a run in the Biotech sector one of these days – is there an index fund that he or folks like? I’ve invested in Biotech before and have had my hat handed to me more than once so I’m not inclined to do stock picking there.
Thanks as always!!
IBB. But wait for the 7 year cycle low first. Now is not the time to buy anything.except the dollar.
is there a biotech fund on the Canadian market?
Understood – just window shopping as they say!
Thanks!
Mike
MARKET ALERT!!!
74k GLD shares bought at 15 cents up in the open market (9:32 am). Another one, 110k 2 cents up at 11:03 am. Strange moves here…
thanks Peter……..
I have a bull position on oil and a bear position on gold. No matter which way the $ goes I am gonna make some coin.
I don’t know if we’ll do QE4 or not, but if we do, that will be a trigger for me to buy phys gold.
Special offer.
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