Energy; gold; conventional equities, and Iran payments with Rick
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stockcharts shows 1198. But the futures double topped around 1198 today, and are currently around ~1189. So it looks like the battle over the ~1191 area is still unresolved.
Saudi……..sending troops to Syria ……..oily slick trick by US….
zerohedge…….(check other places for confirmation, just in case)
http://podbay.fm/show/589864479/e/1454991006?autostart=1
worth listening to about N.Korea/Iran
What a mess……………the O…..ZERO……..should have been replace 7 yrs. ago….
Maybe, but Russia just put many of its troops on high alert and is about to hold wargames just outside Turkey. Definitely saber-rattling.
AngloGold Says Ghana Troops Need to Protect Obuasi After Attack
Andres R Martinez – February 9, 2016 — 11:27 AM CST
“Military withdrew from mine after attacks began Jan. 30”
“AngloGold sent non-essential employees home after 1 killed”
“AngloGold Ashanti Ltd. asked Ghana to redeploy troops at its Obuasi mine after an employee died in an attack by hundreds of illegal miners on the facility last week.
The military withdrew from Obuasi on Feb. 2 following several attacks at the site on Jan. 30 and Jan. 31, the Johannesburg-based company said in an e-mailed statement on Tuesday. Days later, hundreds of illegal miners stormed the mine about 260 kilometers (161 miles) northwest of the capital, Accra, killing a staff member.”
We call that a bad jurisdiction……
More scary is that the Muslim brotherhood insurgents in Libya are winning and moving south and could link up with Boko Haram. If that happens all hell breaks out.
Big Al is right and Rick confirms it on oil. I too hope the miners will rally. And again Rick is right about Iran. Here in Thailand they buy all the USD they can get. The bull market in the USD is just getting started. And yes I know it flawed beyond belief.
But the world wants it….
Most people deserve to be ripped off, just like those Hong Kong guys who abandoned their good jobs and their business in order to work as bar tenders in Vancouver.
Those who are non thinkers certainly do.
Notice the Euro rocketed on Iran. There is probably no political case to be made for Iran adopting the dollar for trade.
Think about this: what if Russia adopts the Euro or becomes a member of Euro states?
Despite the Euro being up today, I don’t like what European Bank stocks are saying. FX7 has dropped from 52 week high of 227 to 138 today. down another 4 points and it’s not just DB in problems.
I, personally, am a little concerned Professor.
Will be talking with Glen on this later.
You really think that could happen Fran?
Not sure, but the popular assumption on the invasion of Iraq was that they adopted the Euro.
What if the Russians wanted to organize a partnership for the continent with Europe such as a free trade zone?
Why would Russia want to adopt a misbegotten basket case currency like the Euro?
Especially after the EU screwed them with sanctions after the MH17 frame-up?
The Euro is performing strongly against the $US.
Fran, I doubt it happens,( what do I know?) but I also think, thats good thinking, “out of the blue””left field” can happen, the world has never been in the spot we are in today.
Well, I don’t doubt that the euro and the us dollar will see-saw. And I don’t think there are any very sound currencies in the world.
But the Euro, a single currency for a bunch of quasi-independent countries with their own fiscal policies, seems unusually bad.
As bb says, what do I know? But given the EU has been in cahoots with the US in antagonizing them, and it would involve a loss of control over monetary policy and therefore sovereignty, it seems unlikely. An alternative to the SWIFT system is in the works, no? To put an end to the predations, I think the goal is to do an end run around US-dominated structures and thus dethrone the US.
Interesting, relevant article, arguing there are two camps in Russia: Atlantic Integrationists (including Medvedev) and Eurasian Sovereignists (including Putin):
One reason might be that they want a currency that’s not subject to predations by the west via the swift exchange and through forex markets on Wall St. that are all mark to model.
No political probably. But what about value considerations!
Looking at Gold volume of trading on the NYMEX, it spiked after London closed…..not moving up or down particularly, just really high abnormal volume.
May mean nothing….just noting.
Kind of new territory that we have not seen for awhile, Professor.
Bear may be over but I think we are going to retrace a little before the next leg up. Loaded more DUST today.
That seems to be what Doc is saying Jason
I trimmed a number of my mining stocks today, but have good low core positions in them now and can weather any pullback over the next few weeks, and will add more when if this happens. I could see Gary’s scenario of a brief pullback, followed by a second leg higher, before the larger intermediate pullback into the spring/early summer. If we get that second leg higher in 2-3 weeks then I’ll short Gold and the miners at that point.
Any Dips In Gold To Provide ‘Good Opportunity’ For Investors – UBS
Tuesday February 09, 2016
“Nevertheless, some caution may be warranted around the key psychological level at $1200 and especially ahead of Fed Chairwoman Yellen’s testimony to the House and Senate this week,” she added.
The market is waiting to Yellen’s testimonies this week; one before the House Financial Services Committee Wednesday and one before the Senate Banking Committee on Thursday. According to Teves, market watchers will be closely listening for any hints she may make on interest rate hikes.
“A cautious message which increases the likelihood of policy relief…would help gold’s journey north, while we think any attempt to keep March on the table could trigger a near-term correction in gold,” she said. “We think a dip in gold should provide a good opportunity for those who have been reluctant to get involved to build positions at better levels.
Despite elevated chances for the gold market to consolidate, Teves continued, macro conditions still remain supportive for the metal.”
I don’t understand Rick’s point about everybody being short oil. How can that be true? For every short position, there’s a corresponding long position.
PF, it’s all about WHO is short. When oil was in the $60s last year, the smart money (“commercial” on the following chart) was way short and everyone else was long. Based on the chart alone, there’s room for oil to move lower.
Hey Big Al,
You can now get free food at your favorite restaurant! 🙂
http://www.marketwatch.com/story/how-to-get-a-free-chipotle-burrito-2016-02-08
I actually have never eaten at a Chipotle.
thx, but offer is already expired!
I don’t think Rick is predicting 1300 gold. He is bullish but said just that IF it gets there, he would say the bear market is probably over.
I agree with his bullishness for several reasons and think this move can extend but I would not initiate a new long position in gold here.
That is exactly correct, Matthew.
Is there an index or ETF that covers the bio-tech sector? And if so, which ETF would you favor?
if you wanna get crazy, LABU & LABD
There is also the ETF (IBB)
Pardu, on the left hand side under healthcare,
http://finviz.com/map.ashx?t=etf
the size of the square represents capitalization.
By waving a cursor over you can get minicharts and share values.
For more info click on individual squares.
(I hope this does not require a subscription….don’t think so)
Does not give complete listing of all ETFs, just the biggest.
Thanks CFS – I always forget to check finviz. I’d never heard of (XBI) or (BIB) for Biotech.
Use mouse wheel to enlarge and double click on square for new page and full stock details.
1195