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Currencies and gold commentary

November 9, 2015

Gary Savage is with us this morning to focus on the upward moves in the US dollar. With the recent breakout in the dollar we need to reassess some of the other markets we are watching, including gold. As for our gold commentary there should be a bounce coming but not the resumption of a bull market.

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Discussion
35 Comments
    Nov 09, 2015 09:51 AM

    Double top in the works?
    http://schrts.co/lND4he

      Nov 09, 2015 09:11 AM

      double bottom in gold in the works???

        Nov 09, 2015 09:42 AM

        Good question.

      Nov 09, 2015 09:55 AM

      C’mon man, give it a rest. Of course USD is
      going to pull back here, commodities and gold will rally for a few days, and everyone will be calling a double bottom in gold.

        Nov 09, 2015 09:12 AM

        Give it a rest? Do you like the look of the daily chart?

        http://schrts.co/m9OssW

        Nov 09, 2015 09:57 AM

        good chance USD will pullback and attempt another run higher after a retrace. Then will determine if it fails or not

    bb
    Nov 09, 2015 09:12 AM

    Some profitable miners are getting close to their 52 week lows.
    Streaming companies might be lookin attractive to some people too.

      Nov 09, 2015 09:38 AM

      When silver gets to 10 bucks I might buy SLW.

        Nov 09, 2015 09:57 AM

        SLW and most of the miners are headed to 0. Smart money would have never let the gdx:gld ratio get to the current ridiculous extreme if that wasn’t the case.

          Nov 09, 2015 09:58 AM

          go ahead and short them then and hold. That would be 100% gains.

        Nov 09, 2015 09:07 PM

        BOB…When silver gets to 10 bucks , I’L buy JP Morgan’s stash.

      PF
      Nov 09, 2015 09:05 AM

      Which ones are profitable?

      Nov 09, 2015 09:15 PM

      52 week lows? How about 15 year lows!

        bb
        Nov 09, 2015 09:56 PM

        15 year lows? My broker page only goes back 52 weeks, but I owned some of the ones I follow and they are down to below 5 years ago anyway.

        15 years is a long time, some minelife isn’t that long.

    Nov 09, 2015 09:20 AM

    When you look at the participation in stocks, it is a really bleak picture. Also when you look at charts of AMZN and others, I don’t know why people don’t think this is already a bubble.

      Nov 09, 2015 09:48 AM

      Stocks don’t have to be in a bubble to put in a top and the market is definitely close to bubble territory.
      The Shiller PE is 26.18 right now while the mean is 16.63 and the median is 16.01.
      http://www.multpl.com/shiller-pe/

        Nov 09, 2015 09:52 AM

        Thanks Matthew

        Nov 09, 2015 09:00 PM

        Yes Matthew, that is what I am talking about. The Shiller PE is that high and people are coming up with explanations to why it can go even higher!

          Nov 09, 2015 09:15 PM

          One thing’s for sure, most people will be on the wrong side when it drops again. It’s never “different this time.”

            Nov 09, 2015 09:43 PM

            No Matthew, it never is. Much as some people hope!

      Nov 09, 2015 09:41 PM

      Right on the money. Biotech is the latest bubble to burst, FANG is all that’s left.

    Nov 09, 2015 09:21 AM

    Although, that is part of the definition of a bubble when it is blowing up right under people’s noses.

      Nov 09, 2015 09:22 AM

      Carry kleenex Richard!

        Nov 09, 2015 09:05 PM

        Nice Al, I will need it for holding my NEM for so many years 😉

    Nov 09, 2015 09:44 AM

    this is the most ridicules junk I have ever seen! These central banks are the chart makers however they want to make them look! Free markets be damned! These guys have their foot on the markets’ neck. Long term gold will go up and when and how I have given up on figuring this stuff out!!

      Nov 09, 2015 09:54 AM

      Almost impossible to figure out, Tim

    Nov 09, 2015 09:48 AM

    Difference now is that the US is tighter on a relative basis than than the EU and is tightening while most other countries are loosening. As long as global currency flows toward the US, the USD will remain bid and commodities and gold will stay under pressure.

    This is a game of relativity.

      Nov 09, 2015 09:51 AM

      Yes it is Spanky.

    Nov 09, 2015 09:50 AM

    Commodities getting utterly slammed today…

      Nov 09, 2015 09:30 PM

      I believe in the next few months they’ll put in the 7 year low in the CRB index, as posted a number of times this year. (It isn’t a a 3 year cycle, as it was only 3 years once out of the last 5 cycles. The rest were near 7 years and we are arriving there in the next few months). Let’s see how Nov/Dec goes, and then I may nibble at some of the commodity players like Freeport McMoran, Teck, Vale, Glencore, Turquoise Hill, etc…

    Nov 09, 2015 09:30 PM

    The market is trading off a jobs report which has an accuracy of about plus or minus 30 to 40% as it is based on forecasts and not actual job creation.

    Nov 09, 2015 09:31 PM

    GDX daily RSI is only at 38! The bounce today just sets up the strong potential for outright capitulation selling.