Are the US equity markets getting tired?
Chris Temple joins Cory for the market wrap today. We first start off by looking at the US markets and the move they had up to this point. With percentage gains month over month declining the term that Chris uses is tired to explain what we are seeing. This does not mean huge drops are in the near future however. We then chat about gold and what has been driving gold this year.
Click download link to listen on this device: Download Show
OFF TOPIC…A must read & watch.
http://www.zerohedge.com/news/2016-05-31/forget-big-brother-facebook-watching-and-listening-everything-you-do
One very good reason for NOT doing Facebook.
Mark Zuckerberg is a no-bit criminal.
It gets worse by the minute Reverend. Read this post below too. So-called hate speech is now being actively targeted across the EU without any clear definition of exactly what is included in that category.
Maybe the guys writing the laws will have to create a list of banned words so we all know what the new rules are because it looks to be pretty vague and subjective.
I mean we can all probably agree that ISIS and what they are doing online is pretty offensive but what about all the people who object to others race, religion, income status, career, political views and sexual orientation?
Everything under those categories might qualify as hate speech if there are negative associations written in conjunction with the terms. So if you are repulsed by homosexuals, prostitutes, Blacks, Indians, the 1%, bankers, Muslims, Chinese, Feminists, Jews, short people, fatso’s, smokers, lesbians etc etc then you can no longer say so publicly.
It is utterly insane.
And the reason I say that is because contrary opinion and negative expressiveness has a valid place in society. It exists for a good reasons and has since time began. The world has not been and never will be a happy-happy little playfield where we all get along and think alike.
Personally. if I want to say that child molesters should have their testicles removed its because that’s how I feel about that class of low lives and I really don’t want any politically correct Mother telling me I can’t write or say that.
But in the New World Order that would also be forbidden since even hate expressed towards the sickest members of society would probably land you in hot water. I don’t know what’s wrong with Europeans that they don’t push back against this kind of thing but I have long since come to the conclusion that the whole Continent are a bunch of panty-assed wimps.
Can I say that!!!!
European Freedom Of Speech Threatened As Social Networks Vow To Combat Self-Determined “Hate Speech”
http://www.zerohedge.com/news/2016-05-31/european-freedom-speech-threatened-social-networks-vow-combat-self-determined-hate-s
What’s news about that?
In other news, GMX had another good day and another good press release. More OPM at work…
http://www.globexmining.com/staging/admin/news_pdfs/5-31-16%20Ramp%20property.pdf
Chris Temple, isn’t gold more like a pimple on an elephant, still in relative terms?
Could be
Sure Marty, gold is irrelevant for a good reason. One ounce coins bought in the late 1970’s for 400 dollars US at the mid-point of the price bubble of the day are only at break-even now in inflation adjusted terms. And that tells us not that gold is cheap in historical terms but that it is still slightly above fair value. This asset has been the most rotten of performers for almost 40 years running. It can’t get out of its own way. We have too many gold mines in my view and an excess of production because product pricing is still too high. It is no different than a lot of other surplus mineral and mining production that has seen the market flooded with all kinds of ores in a period of falling demand. The manipulators in the room are busy trying to trick everybody with ratio charts to prove gold is a great investment but its almost all bullshit and not tradeable information anyway because we only see ratio validity in the rear view mirror. Whether those guys price gold in terms of chicken, cheese or strawberries makes no difference. It is objectively overpriced based on inflation alone and therefore not a great investment when we are factually deflating.
Jeff Kern’ s SKI bought the close Friday on USERX
WOW ! Really?
If true, that is HUGE news.
Jeff is one of the handful of people I actually listen to.
He was looking for a very fast (and LARGE) move down in gold and PMs
Marty, I started subscribing to his website. To be honest, he talks using a different set of terms and languages. I have trouble understanding what the heck he is even saying. I’ll continue to follow him for the next several months. Hopefully, I’ll catch on.
Jeff did say that his system was unable to read the market at turns because it relied on historical evidence based on an existing trend line and that does not yet exist during a period of a bounce that he thought might go higher. The SKI system needs to have valid prior readings along an existing direction before it can discern coming moves and that might take a month or longer before he can offer better guidance.
How do you know that Marty?
Bob, UK- 321gold under Charts, Reports May 30, Conclusion section
Sounds good Chris. What you are saying with regard to gold demand for jewelry, fabrication and other production versus gold for investment is probably one of the better comments I have heard this week. The outlook is not bright. Where I would disagree though is on this popular notion about how small the gold market is and how much it *could* move if even a few percent of investors moved to buying bullion. Not that the idea is not true but we have been hearing this old refrain for 50 years plus already and it has only been meaningful for brief periods of time at the very tops in the metals market. In other words, it is a failed narrative just as much as all the empty blather about “money waiting on the sidelines”. Meanwhile, it does look like we will get a market moving in the right direction again in spite of all the usual fear being pumped at us. Maybe we get another correction first but the direction of the stock market looks to be up, not down in the bigger picture and that will indeed take the wind out of the sails of precious metals once more. Maybe you saw that CRB chart I posted yesterday? That one is worthy of anyone’s time to contemplate because it tells us we have not yet seen the final bottom and therefore gold is not ready for showtime yet. Lets give it another year. I am interested of course but remain unimpressed by metals in spite of this little rally we went through.
So May is ended. We have that monthly reversal on gold confirmed and it does appear to be significant going forward so buyers with sense should probably temper their enthusiasm for the balance of 2016 and understand that gold is not going to deliver in the way they imagined.
We did not see similar reversal patterns on silver, copper or the other precious metals though so this seems to be telling us about a problem with currencies rather than commodities.
I mention that for its significance is found in the fact that the US Dollar, the Euro and the Swiss Franc ALL posted respective bearish monthly outside reversal candles and these are indicative to me of the implication deflation will now gain ground.
The Euro in particular looks quite troubled. That is frankly a disaster where gold is concerned as the correlation between the two rising and falling together is still pretty strong.
If you did not know any thing else about gold you could probably place long term bets on just this one basic relationship. So we will not get a V shaped or a U shaped recovery in metals this year as Doc has suggested. (sorry to disagree with you Doc but the preponderance on evidence is on my side that gold has failed and will not see new highs this year).
My certainty that gold has already seen its top for the year is now confirmed and little doubt remains that metals should be faded until next January at least but perhaps even longer.
This is obviously the kind of news that most here do not want to hear. The charts don’t lie though so we need to set aside our rose coloured glasses and stay objective. To the gold bugs I would only suggest that you not get too heavily invested in metals or miners or to only do so with caution as another round of declines are coming and we will certainly see lower-lows in both silver and gold in due course.
And on a slightly related theme, boy am I getting tired of hearing that worn out line that the the “Fed has lost control” or it has “lost all credibility”. The price of gold indicates that is not the truth. When I see our golden relic soar in value as the dollar crashes then I might agree but that time is not here. for all its warts and problems the global economy is still functioning in spite of the persistent low growth. The world has not ended. Money has not ceased to function. We are not on the verge of a worldwide collapse today any more than we were 30 years ago. We have problems of course but the gold market is sure not telling us we are going Mad Max anytime soon. We should be happy about that and even more happy that the bugs are not getting their much heralded economic Armageddon. Jesus that band of promoters must be among the most stupid of all classes of society to actually believe the junk they pump day in and day out.
Well, to be honust I liked to hear your opinion that we are not going mad max anytime soon.
I still think there is a risk of bank holidays.
Far more manageble than mad max.
I actually spoke to bmo altho its hard to get to ceos and such, but what I found out was they have plans for a shut down.
Logical they would, they told me “everything freezes”, well, at least they have thought about it and they plan on re opening, so a bank holiday would not be the end of the world.
Simple/silly stuff to investigate but I have time for it.
I just wanted to hear what they had to say.
Excellent food for thought with your last few posts Bird, you havnt convinced me to sell my phyzz tho. lol
But I fortunately dont need the cash. 5-10% is not really difficult to manage price going up or down.
Right now Im sidelines with my “market” cash, waiting for a good clue im comfortable with as to which way to go.
Clues can be hard to find being blind and all. lol
Good stuff from Chris and Cory