The Fed statement with nothing new and the markets sold off
Chris Temple and Doc are here for our market wrap. We discuss the Fed statement and how the markets reacted. We also take a look a the US dollar to assess when a breakout or breakdown may happen.
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has anyone else experienced this: last week I took some cash out of the bank to buy a used car, yesterday i redeposited $1400.00 and was questioned. Is this your account? YES, you will need to provide a picture ID to deposit cash? What the heck is going on?
Bobby-Bobby- Bobby..Tut-Tut. You just don’t get it , do you.
The Bankers don’t get any pleasure when you give them money.
They only get their JOLLYS when they are STEALING it from you.
Too right IrishT.
funny……..Irish…………
Ostensibly the ‘war on drugs & terrorism’. Cash can’t be traced as easily as paper. Sad world we live in, No?
come on $1400.00 gets you a dinner for two with drinks.
That’s a pretty good dinner 🙂
Bobby if you are ever treating others to a dinner, count me in. Wow.
Bobby………..yes………..Chase Bank in South Florida
my bank as well.
this malaise was caused by the Big Zero’s insistence on raising taxes, followed by inaction.
The US has the highest Corporate income tax in the world.
Why does anyone expect anything other than recession?
Jawboning ….no good today. FED up, and she should just shut up.
Doc:
Loved your comments today. A few days ago you mentioned that you like the stochastics (weekly) to help show the bottoming process in some markets. Have you checked it against CDE and BTG. I bought some of each a couple days ago. Thanks for pointing out how you use some of your technical.
The stochastics do show turns in the pretty well, as compared to the MACD which is more lagging, and the RSI that can remain overbought or oversold longer than one expects. Candle patterns and Volume spikes can also be good indicators.
Hope all is well Silverdollar.
turns in the (market) pretty well…..
Also and RSI or MACD divergence with the trend is useful, and I left out EMAs, Fib retracements, and timing bands on markets as good places for a market turn. Something point out to me recently was the Fib retracement levels can be used horizontally on time horizons, in the same way it is used vertically on pricing. Food for thought I guess.
For those readers that like to follow Gary, he posted this article this morning: http://news.goldseek.com/GoldSeek/1453906920.php
Thanks Silverdollar.
I had some huge gains by noon from my pre-market purchase and they mostly vanished on no news from the Fed when I went to lunch at 2pm. The Fed has been deliberately bursting the bubble as they had mentioned before that stocks were getting overvalued. Boosting the oil price futures by central banks can stabilize the markets without QE.
I think we all need to wait and see what Saudi does – OPEC and the Russians may decide to talk but that might not mean the Saudis playing ball.
But with so much storage apparently now full surely they have to now consider reducing the amount of oil they pump.
You guys really had a lot of beef in these segments today. Doc, you answered my questions about the USD. It will be interesting to see if it taps 100.50 before it starts moving down. If it does, it could a very long time before the dollar is ” a dollar ” again..
Boy, if gold and oil fall much more along with a big rate hike, it sure looks like a mega margin call scenario… And maybe thats the plan all along ,to unwind and collapse the derivative debt scheme. It’s what probably needs to happen for our markets to get back to a semblance of some sort of reality.. And look at the comex.. Geez..
You still think that oil is going to head lower Chartster?
* JANET AND THE FED already know that they are not going to raise rates anymore, they didn’t want to raise rates in the first place……and now that they did look at the economy now and check out all the bad data coming out more and more each day!
THIS ECONOMY IS FINISHED…………and so is the world!
Just wait until those markets open up again in Asia and watch the Baltic Dry Index!
Definitely, Bob. Low 20s at least.
The oil bounce today completely bamboozled me. Seems to be mainly the OPEN Russia talks rumour – let’s see how much legs it has.
It would surprise me, just as the pain of a low oil price is beginning to take casualties in the US shale industry, that the Saudis would now suddenly reverse their policy.
Bob..When the Saudis decided to play silly games , they did it with eyes closed while stepping towards a huge hole filled with camel shit , now they have the task of digging themselves out of the shit.
Well, possibly.
But it doesn’t make sense for the Saudis to spend 18 months – and goodness knows how many billions in lost oil revenue – getting most of the global oil producers close to going bust only to stop just short of achieving your aim.
See my comment below.
That’s a great point Bob UK. I do think the goal is force many global oil companies out of business (especially in US and Canada), but as IrishTony mentions below Iran coming back online is just adding fuel to the fire, so to speak….
It just seems that if they kept the pressure on for another 3-6 months that the bankruptcies would start rolling in. Many of the corporate presentations I’ve been getting on for individual oil stocks are touting profitability at $40 and $50 oil, but they are screwed at oil in the $20s and $30s. If the Saudi’s kept it up, they’d complete the carnage, and it would be very painful to N. America, S. America, Australia, Russia, and parts of N. Africa. I find it difficult to believe they’ll give up so close to their end-game.
Maybe the Saudis are caving at the final hour…..
Oil soars towards $34 on possible production cuts
Reuters – 14 minutes ago
http://finance.yahoo.com/news/u-crude-falls-back-jumping-003902750.html
BTW…The fly in the ointment for them right now is IRAN since the sanctions were lifted.
Chartster….I disagree.
I understand, Irish. That’s what makes a market.
As oil is still being givin away for free in N Dakota, I would guess oil has a ways to drop yet.
* AS FOR THE COMEX, THEY BEEN OUT OF GOLD, IT’S ALL A BIG SHAM!
I told everyone back in October that the SHAMEX was out of gold, now it’s becoming official…………like I keep telling you, I don’t have to wait for the official word!
So as for this economy………’This Junk Done Sunk!
……..and as for Donald Trump, don’t go to that debate and yes Megyn Kelly is a snake all poised and really to bite…………the Don is no fool!
Fox News needs the Don more then he needs them!
Mark….I agree with your last sentence.
They know it!
Gold is always valued based on paper contracts whether the physical exists or not.
And that’s where the problem exists………….well we are all going to see how this one plays out going forward!
First delivery is just in a few more days!
ditto Mark………
The problem is the FAKE PAPER………………
It does not work this way. If COMEX does not allow delivery due to too much demanded, buyers will go to LBMA to take delivery and the price has to rise to discourage delivery or encourage sellers to sell physical. If LBMA does not allow delivery, buyers go to TOCOM or shanghai. The paper exchange and physical will detach. If all all exchange limit delivery, people barter.
Sorry, the LBMA is out of gold!
****** BALTIC DRY INDEX SMASHED AGAIN DOWN TO 337 POINTS! MORE PAIN! *******
http://www.bloomberg.com/quote/BDIY:IND
This shit is over!
******** FOOD PRICES IN CANADA SKYROCKETING! RECESSION IS ON! *********
https://www.youtube.com/watch?v=X-bMN1K-ITU#t=37.3709984
This is definitely coming to America!
Sure………..it’s not all over Canada yet, but it’s spreading!
This is how it starts!
Hi Mark, please take that video you posted with a big grain of salt. It seem to have been posted by an American who is “cherry-picking” his “facts”. The “evidence” in his little propaganda piece represents a supermarket it Norther Canada where shit has alway been crazy expensive! Although I bought a cauliflower for $1.98 CND yesterday in Souther Ontario (which represents 1/3 rd of Canada’s population), they have become extremely pricy in the $5-7 CND dollar range since late November. I’ve attached a couple of supermarket flyers to give you a more accurate picture. Check out the flyer to get a better idea of what food cost in Southern Ontario: http://www.foodbasics.ca/en/flyer.html#resultat http://www1.shoppersdrugmart.ca/en/flyer . Here is another pricier place to get food . https://shop.loblaws.ca/deals/flyer/1453948609663/page/~item/a/~sort/recommended/~selected/true/~filters/deals-for-pickup-time:true
Sure prices have rocketed up since the fall, but they are nowhere near the link you posted. I hope this helps clear things up.
THANKS!
*** ASIAN MAKETS ARE OPEN AND THE NIKKEI IS ALREADY DOWN OVER 1%.
China markets open next!
There is no sell off and the world is not ending. Nikkei and Hsi up a bit. China -.7%.
Some states are booming. Look at California or Mass. and NY.
LOOK AGAIN………………………DUD!
Why do you keep saying that the world is ending………….no one said that!
You are making it sound like that. We are just in corrections. Chinese index could eventually fall to 2000 but then it will rocket up from there in a new bull market.
GoldCorp $11.00 ?
I will believe it until I see it!
No money going into the Shares yet!
I don’t own any shares in it and not a recommendation, but I have not seen samples better than this in a while:
American Creek Resources: Electrum Project-Rico Showing High Grade Average 54.6 GM/T Gold and 11,512 GM/T Silver
CARDSTON, ALBERTA–(Marketwired – Jan. 21, 2016) – American Creek Resources Ltd. (TSX VENTURE:AMK) (“American Creek”) is pleased to provide results from outcrop specimens of high grade material collected on its Electrum property from a known vein on the Rico Showing. The Rico Showing is roughly 50 metres south of the Shiny Cliff Showing.
Thanks for the post CFS. I am not familiar with it at all, but am always curious on potential high grade discoveries.
http://www.cnbc.com/2016/01/27/ex-obama-adviser-austan-goolsbee-says-fed-
may-cut-rates-in-2016.html
******** BILL HOLTER BREAKS DOWN ALL THE SHADY DEALINGS AT THE COMEX AS THE COMEX COMES TO AN END! ********
https://www.youtube.com/watch?v=5b-hhZYHsdo
THIS GAME is almost over folks! A MUST LISTEN TO VIDEO ENJOY!
* China will make the all the rules soon!
…….all the rules!
Dominoes are falling everywhere!
You Boys keep on trading these markets, ya hear!
LOL.
* UH, PAUL L…………..are you watching the Asian markets right now………DUH!
These markets are falling apart! Look at all the bad earnings that came in last night from Europe……..one miss after the next!
NO PAUL, it’s not the end of the world…….just the end for these world economies!
WE KNEW THIS WAS COMING……………THERE WAS WARNINGS!
So you Boys just keep on trading these markets……………YA HEAR!!!!!!!!!!!
AHA, HA,HA, HAAaaaaa……….
lol……..sad!
My account is shooting up so I am not worried. Up very sharply today, over 4%.
*** LOOK AT THEM THERE ASIAN MARKETS NOW!!!!!!!!
Boy!
Shanghai now down more than 3%
*** Okay European Futures are now open and everything is down!
* Bottom line Mark………………YOU ARE THE MAN!
Please give me an ignore button
lol
Good grief – oil is all over the place today.
Lots of FUD – Fear, Uncertainty and Doubt – going on around talk of possible oil cuts. The Saudis have just come out and said that the talk of cuts agreed between OPEC and Russia are just fantasy.
Someone is clearly in big ramping mode.
It does not make sense for the Saudis to spend the past 18 months, and the loss of goodness knows how many billions in lost oil revenue, to suddenly stop right now just as there appears to be a load of bankruptcies in the Canadian, US and other countries’ oil industries. Makes no sense at all.
3 years?
It won’t happen. IMPO this is just a move to try and calm the indigenous Swedish people.
Flash crash ………….again, what’s new………………..zerohedge
Thursday January 28, 2016
Endeavour Silver Corp.: 2016 Output To Be 7.9-8.5 Million Silver-Equivalent Ounces
Silver Wheaton Announces Early Deposit Precious Metals Stream With Panoro Minerals
Sierra Metals: Significant New High-Grade Zone Discovered At Yauricocha Mine
Sierra Metals is up nicely on this discovery news in Canada and in US.
It is also a good illustration of how different the percentage gains can be in the Canadian dollar terms versus the US Dollar terms.
Sierra Metals Inc. (SMT.TO) -Toronto
1.15 Up 0.18(18.56%) 12:34PM EST
Sierra Metals Inc. (DBEXF) -Other OTC
0.8221 Up 0.0381(4.86%) 12:36PM EST
I am a fan of Sierra Metals and think it is a hidden gem of a company that will one day get its due. I like their diversification across different Precious Metals and Base Metals in Mexico and Peru.
Here is the Sierra Metals Corporate Presentation. I’d be curious to get others thoughts:
http://s2.q4cdn.com/485819848/files/doc_presentations/2016/SMT-Corp-Pres-January-2016.pdf
It appears they are going to have a special press release and call on this high grade Esperanza Zone discovery they made. They seem to think it is very significant:
SIERRA METALS ESPERANZA ZONE DISCOVERY
Date: Tuesday, February 02, 2016
Time: 10:30 AM Eastern Standard Time
“Esperanza is the most important discovery in the history of the Yauricocha mine and in the history of Sierra Metals” stated Mark Brennan, President and CEO of Sierra Metals. “Esperanza is unique due to its high-grade copper, silver, and zinc sulfide intercepts, along with its exceptionally wide thickness of its mineralized zones, and its proximity to existing mine infrastructure. We are working towards accessing part of the orebody as early Q3 of 2016 which would have a positive impact on head grades in the second half of 2016 as well as on the Company’s cash flow.”
He continued, “Unlocking Yauricocha’s potential through new discoveries such as the Esperanza zone are a key part of our growth strategy. While we continue to improve existing mine operations and production capabilities, we are very excited by this discovery and look forward to continuing to unlock value through further brownfields discoveries.”
All -in Sustaining Cash Cost per Ounce produced in Silver Equivalent was $12.51 in 2015. That’s pretty good, and it seems they believe it will improve in the 2nd half of this year based on the higher grade and thickness of the new discovery zone.
Something starting to change here….per Doc…….
Comex shortage might be a problem ……for those wanting phyz.