Early Morning Commentary from Rick
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Rick Ackerman comments on the markets’ reversals from yesterday.
… ever?
As one of my parents used to say: “This year, next year, sometime, never.”
However Frank, what if the markets take the rates up?
Greece had 30% interest rates at some points but I don’t recall there was any inflation there. It was default risk premium.
Gold Update: Bulls Have The First Confirmation
http://www.ino.com/blog/2015/09/gold-update-bulls-have-the-first-confirmation/#.VgVy_87XTr9
I am not so sure Mathew as it is all about perception.
Are you turning bearish, Al?
About what?
I like Rick’s attitude. He is morally outraged at the Fed as all of us should be. No sentence with the Fed in it is complete without including the concepts of lying and stealing. Grammy Yellen is a thief and a liar who steals foods from the mouths of children.
You don’t have a strong opinion do you Wayne!
MACD just crossed on the 10 day heading down on the S&P. Can’t wait to see how we close at the end of Power Hour.
Looks like gold will probably hold and close above 1141 and change for the second day running so I am still in the bullish camp going into the weekend. And that is saying a lot since I am the biggest of bears where gold is concerned. The set up looks just fine to me right now though.
Did I hear that right – Rick thinks we could have a 600 point rally on the DOW?
Bob I think he is saying that it would need a 600 point rally in the Dow or the S&P to get back over 2012 (from 1934 now, +78 points) before he would turn bullish.
Rick is a growling bear in a baseball cap!
Thanks silverbug.
Down I believe.
I love listening to Rick. He speaks clearly and cuts through all the BS.
I am beginning to like my 1:1 Dow:Gold ratio guess with both at at 1800 in the future.
The Dow has gapped beautifully below its megaphone upper line in the last few weeks.
http://1000gold.blogspot.co.uk/2015/09/dow-gaps-down-through-its-megaphone-top.html
That could put a target of 5500 in the Dow in play and if the megaphone breaks down a target of 1850 calculated from a log chart (on a linear chart the target would be less than zero). That could also put the Dow:Gold megaphone in play which has a target of Dow:gold around 1:1 but actually more like 0.7:1. That would require the above magnificent 90% crash in the Dow.
Then the hyperinflationary response can come to break down the 86 year Dow:Gold ratio megaphone pattern until gold is worth much more than the Dow.
That is my timetable for disaster but maybe it won’t happen. It is fun to theorize though! It keeps me off the streets.
http://1000gold.blogspot.co.uk/2013/10/could-dowgold-ratio-go-close-to-zero.html
Al I liked your remark “Fascinating how much power the Fed has over the markets”
It depends now on whether it is positive or negative power.
It may be that the positive market pumping power of the Fed is coming to an end and we go into a situation where it doesn’t matter what they do but the markets will take it as bad news instead. In that sense, the psychology of the markets overwhelms the Fed and they will will not be able to tempt anyone into speculation on the long side any more. That would be asset deflation.
Depends on which side you are on!
Well Al, I guess you are writing about short speculation instead of long. There might come a time when either short selling is banned or the system will be in systemic financial failure and the potential winning shorts might fear not getting their money anyway so why bother?
It’s no use winning a bet if the bookie goes bust.
I am with RICK…..no rate hike……