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A focus on the conventional markets

September 1, 2015

On today’s market wrap we focus on the drop in the conventional markets. Weakness continues to be the overall story for the markets. We also touch on the PPT (plunge protection team) and if they are actually in the markets.

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Discussion
26 Comments
    Sep 01, 2015 01:17 PM

    You heard it here first – “gold is going to zero”.
    (right at the end)
    https://www.youtube.com/watch?v=2L–DNdSs2U

    iHave to listen again

      Sep 01, 2015 01:43 PM

      send me yours when it does……………..

      Sep 01, 2015 01:01 PM

      I don’t normally take these sorts of things very seriously but it’s interesting what one of the comments on that video says
      “Mark Anthony Stringfellow 4 hours ago
      Has anyone noticed the Sun light looks different, kinda like the colour spectrum has changed, it looks more like when there is an eclipse”

      I was looking at the washed out autumn type of light one afternoon last week and I thought that this was the kind of light that you get late in September after the equinox when the daylight hours are running rapidly shorted in northern latitudes. The l.ight reminded me of the rubbishy eclipse in the UK on 20 March 2015 which was about an 87% coverage of the sun. My friend’s 7-year-old son said it was “boring” but the light from that eclipse was a little like the 1999 solar eclipse (that was more like 98% coverage from my home) has been somewhat duplicated last week without any eclipse. The weather is cold even when not raining and the sunlight is wishy-washy. We have not really had a summer here in the UK especially during August. The hottest day is normally at the start of August but this time it was a ttotal washout. Interesting!

        CFS
        Sep 01, 2015 01:22 PM

        It is incredibly easy to run a complete solar spectral analysis…..High school project easy. I suspect if there were something happening it would have been reported by now.

        Other than low sunspot activity and very occasionally a solar flare that messes up shortwave radios, I am not aware of anything.

    Sep 01, 2015 01:33 PM

    Irwin thanks for the Ducks!

    Sep 01, 2015 01:47 PM

    Very conventional stock that deserves watching:

    http://schrts.co/T7jPzH

      CFS
      Sep 01, 2015 01:29 PM

      Been mentioned on bnn.ca, Don Doxe has mentioned it and I have a felling bloomberg might have mentioned it in the last week.
      Someone on financialsense, said avoid Canadian banking stocks, because of property bubble.

      Why do you think it deserves watching, fransix?

    CFS
    Sep 01, 2015 01:54 PM

    The behavior of the Japanese market and the amount of share purchases by the BoJ has been quantified.
    The intervention, by the Bank of China, while we do not have exact numbers ,is surely not in dispute.
    Why are people unable to accept the PPT?
    I don’t think anyone has claimed daily or weekly intervention by the PPT.
    Just as needed; which really is their mandate.
    No one is using it as an excuse for trading losses, as far as I know.

    I mention the PPT, only when I have run out of exhaustive attempts to explain market behavior that defies fundamental logic.

    If I see a group of stocks changing price suddenly, I first assume news out of the stock or stocks.
    If no news, I assume some commentary, or some publicity, etc.
    It is only when I have run out of all other explanations, I can think of, that I even begin to consider PPT action.

    I try to explain, to my own satisfaction, market behavior based on logic.
    If something moves up in price there are more buyers than sellers, etc.
    My first assumption if something unexpected happens, is that I have a lack of knowledge, so I start digging for a logically explanation.

    I know Mr. Moriarty tries to claim no manipulation in Gold price. May I remind him that he has not explained to my satisfaction why large volume selling has repeatedly occurred during normally low volume times when the seller would not receive the best price. But that such action is not motivated by manipulative desires, as opposed to achieving optimum price.
    Illogical action, to me, requires a modification of the assumptions upon which the deduction was based. And the only logic change I can make is that the seller at low volume times of large amounts of gold was desirous of moving the price down as much as possible.

      Sep 01, 2015 01:11 PM

      I can comment on Japan, as I live here. PM Abe had the finance minister (Japanese Fed) print a trillion dollars (in yen), and gave it to the banks, to invest in the stock market. In addition, the fed here directly bought stocks, something that the US Fed didn’t do I don’t believe.

      In the US, how I understand it is that the Fed printed money, gave it to the banks, who then invested in stocks.

      I don’t know about China.

    CFS
    Sep 01, 2015 01:14 PM

    Would you guys like to comment about invocation of Rule 48 on the NYSE today?

    Do you not feel that could be a precursor to alerting the PPT?
    Clearly the PPT cannot act instantaneously.
    I would suspect the PPT would not act directly on the market, anyway, but via some agency.
    I would assume such an agency would be given some provisional. conditional instructions to handle anticipated contingencies.

    Just as circuit breakers are built in to exchange rules.

      Sep 01, 2015 01:26 PM

      I bet joh……is in charge of the circuit breaker………..heck, he might even be the headed electrician on the floor sweeper.

    Sep 01, 2015 01:26 PM

    Hi Doc,
    Just wanted to follow up on conversation from yesterday. Did the close on gold today give you any insight on the miners?
    If you have a minute, let me tell you what I am looking at on the GDX.

    Here’s how I have my chart:
    I have a daily chart set up with candlesticks going out 1 year. On the chart I have the 10, 20, and 50 dma, along with the BBs overlaid. Under I have the RSI and the MACD.

    I am looking at the time period from Sept 1 2014 through Dec 10, 2014 and comparing that to June 1 2015 through now.

    The fractal looks pretty good. If it holds, we could see a small bump in GDX over the next couple days, then a drop back down towards the Bollinger Bands before a nice bounce up for a short while.

    Any thoughts? Thanks.

    Sep 01, 2015 01:16 PM

    Frankyyyyy! Welcome back.

      Sep 01, 2015 01:01 PM

      Just no derogatory religious comments about anyone!

      Sep 02, 2015 02:19 AM

      be cool ……..stay around………………………j the long

    Sep 01, 2015 01:01 PM

    DF; what fascinates me about GDX and GDXJ is how they closed down today with a close up by gold. That tells me that there is not much power behind any of these moves. It also tells me that we’re moving forward to another move down in gold. It won’t take out the previous low on the next move down but we’re in a pattern now until December of a “slo mo” move down along with GDX and GDXJ. You could very well have a bump up in GDX the next couple of days but you’re going to run pricing very soon into the descending 50 day MA for both GDX and GDXJ. In fact GDXJ bounced off of it today. I suspect that you will see a slow drift down with occasional muted rallies until December. It’ll be tough to trade the rallies since the moves won’t be impressive.

      Sep 01, 2015 01:26 PM

      So long as the gold:silver ratio is bouncing along the highs, I can’t see how metals or miners can go very far.

      When they go higher, silver needs to lead the way. Am I wrong?

      http://stockcharts.com/h-sc/ui?s=GLD%3ASLV&p=D&yr=2&mn=0&dy=0&id=p84997049633&a=410431976

      Sep 01, 2015 01:41 PM

      Thanks Doc! Yeah. Miners are caught in the markets downward spiral it seems. Maybe they will catch a bid for a short time if the market moves up, but my confidence is with you that we see this thing continue to move down.

      Thanks so much for the guidance you offer on this site. A lot of great people here that Al and and Cory have done such a fantastic job of assembling and bring to us everyday, but yours is the insight I value the most.

      Thanks Al and Cory for making this such a great site. We’re all lucky to have your time and dedication.

      Grateful.

        Sep 02, 2015 02:18 AM

        Well said. Thanks to everyone that contributes to making this site a reality.

        Excelsior!

        Sep 02, 2015 02:20 AM

        Ditto on the TIME AND DEDICATION…………………..