Is this gold move the start of something?
We kick off today with Chris Temple and a focus on gold. Gold is getting a nice move again today but is it pointing to a steady increase in gold?
Of course we also get in to the Fed and what they are thinking about these moves post announcement.
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Good program. Even with gold up $20 and seemingly holding……the miners are very skittish. Too many buyers have jumped on the bandwagon in the last couple years and the following morning, had their head handed to them. Since it is Friday, many won’t want to hold over the weekend.
Chris: What is your opinion of FCX raising a billion $ with common stock at these levels? I see it as a decision that says the Board doesn’t give a crap about the present shareholders. Although, it probably depends on what they want to do with the billion and supposedly another billion to follow.
No demand for metals is the bottom line. Deflation.
Chris made a lot of valuable points.
This normalcy bias of some 80 months of QE will take some major de-programming for many. But when it breaks that’s when gold goes shywards.
For shywards read skywards!
The reason why they dont raise the fed rates is that they know that the moment countries start dumping us treasuries rates will rise automatically.They dont need to do anything;the others are gonna do it for them.The fed is just buying time atm but their back is against the rope waiting for the final k.o. punch.
Anyone read an article today on RT? I guess some influential people there are discussing making it illegal for Russian companies to use Euro or American dollars,take loans in foreign currency and the big one, default on all Euro/American dollar debt.
They feel they will have no problem replacing all of it from countries they have positive business relations with.
It was also suggested to “deal with” their central bank.
The rugby world cup starts shortly – England versus Fiji in the opening game. Canada is there of course and even the USA has a team. Obviously, Wales is going to win it.
I am off out to buy some bottles of Gower Gold for the game… and will pop in here later on to see what has happened.
Of course wales is going to win. Cymru am byth achan.
Options expiry…..of course that’s why gold shot up two days in a row. Because the vast majority were sitting ducks having taken short positions. If I am not mistaken did we not learn earlier in the month that there were actually record shorts in play? So the majority are wrong again and all of them got screwed on expiry.
Gold is going back down Monday btw……the chart says so.
I think Al needs to open up a “fight room” like Yahoo use to have so people can go in there and vent. Or at least open up a “Jesus, vs Mohamed vs Jews vs etc.” room so all the religious minded folks can go over there and beat each other over the head with their respective books, scrolls, or what ever.
Market gonna go down 20%. 🙂
Not joking about the fight room. Get’m out of the way of market talk.
Right arm, Jason!
Ditto…..right on Jason. Some of the people starting all the fights don’t even trade. They are wanna be’s and side show Sally’s or wall-flowers (or whatever). Some of them have so much time on their hands to just bicker and argue its obvious they are not in the markets during action time. It’s total BS.
And some of them just post charts as if that means anything. Cripes….we can all post charts. Who needs them. We are all looking at the same thing anyway. None of it is original.
No gold medals for the chart goofs.
Because they are just trying to impress with their copy-paste skills……..
Like secretaries or something. Hell, I got a girl for that already (I have two actually).
Not bragging; but they have none.
It is going to be interesting to see if the gold – yen positive correlation ends. It needs to do this because the Nikkei has been almost exactly inversely correlated to the Yen on a tick by tick basis for much of the time in the last 3 years and the Nikkei has been in a bull market.
For gold to have a rip-roaring bull market I think the Nikkei bull market needs to end or have a long consolidation. It might be difficult for the Nikkei to be in a bull if the rest of the world is in a bear market. However, the Nikkei took 19 years to go from high to low and it is 25+ years since its high at the end of 1989. So there is a good case for a Nikkei 225 index secular bull market being in its early stages now, based only on the passing of so much time in its bear market (compared to gold and almost everything else).
Alternatively, the gold:yen correlation needs to break or the Yen:Nikkei inverse correlation needs to break apart. The latter is highly unlikely because the Nikkei bull is artificial like the US stocks bull and is based almost solely on Yen depreciation.
In my humble opinion if the Nikkei bull market breaks down and the Nikkei makes a new low, it will indicate the end of prosperity for the developed world economies in total.
Chris is spot on with the Fed’s 3rd mandate.
Budget battle in two weeks.. Expect a stimulus.
FED = QE4 +/- NIRP