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Some levels to watch tomorrow after Yellen’s speech

Cory
August 25, 2016

We wrap up a slow day in the markets with what we are expecting from Yellen as well as some technical levels coming to the end of the week. We typically see some wild swings in markets after a Fed meeting and Yellen speech but remember these swings usually do not change the overall trend.

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Discussion
60 Comments
    CFS
    Aug 25, 2016 25:47 PM

    I have been waiting for a signal to short the general market, but the tape appears too heavily painted.
    e.g. NYSE: Shares up 1,627 Million, Shares down: 1,200 Million
    NASDAQ: Shares up: 735 Million, Shares down: 664 Million.

    Despite the behavior of the averages……..no signal.

    CFS
    Aug 25, 2016 25:51 PM

    The bond market, on the other hand, looks like it has potential to break down…….worldwide. Soon.

      LPG
      Aug 25, 2016 25:40 PM

      Hello CFS,

      Yday you mentioned this:

      “Strange, but true……’
      A local judge for a village near Nice, France has banned the wearing of bikinis by women. (Claiming that it would be justification to provoke islamic terrorist attacks)”

      You’ve got a link for an article please ?

      Cheers,

      LPG

      CFS
      Aug 26, 2016 26:21 AM

      LPG,
      I heard it on BBC Radio 4.
      I would have given a link if I had one.
      It was followed by a warning for British Holiday people about being careful not to get arrested.
      Later in the day there was a report about tourists being attacked in Sisco on Corsica being attacked for taking photos of Muslims wearing burkinins, which is a headscarf/ blouse that comes down to thigh height.
      But the first report was about bikinis, which surprised me.
      About 20 years ago I rented an apartment in Menton for a summer and used to Travel over to Italy weekly as well as spending time around the French Riviera. Back in those days secluded beaches on the Cap d’Antibes were definitely clothing optional.

        LPG
        Aug 26, 2016 26:59 AM

        CFS,
        Thanks for the input.
        I’m aware of events @ Sisco… and how a burkini looks like… 😉
        As a side note, top clothing is still optional on France’s beaches… Don’t “worry” about it.
        Best & thanks again.
        LPG

          CFS
          Aug 26, 2016 26:31 AM

          I have had many a fine meal in Marseille; even in little cafes with seating in basement or upstairs. Fond memories.

            LPG
            Aug 26, 2016 26:01 PM

            Mars’ a great place CFS. Glad you had a good time in a few places there.
            Best,
            LPG

          CFS
          Aug 26, 2016 26:35 AM

          http://www.internetradiouk.com/#bbc-radio-4

          is a window I keep open on my computer, which will play most UK radio.

    Aug 25, 2016 25:07 PM

    Yellen’s Speech:

    3 Possible Scenarios And Their Effects On The Markets

    August 25, 2016 By Martin Tillier

    1. Yellen Indicates a Hike Before Year’s End:
    2. Yellen Clearly States that No Hike is Coming This Year:
    3. Yellen Doesn’t Mention Rates:

    You can read his full article here;
    Read more: http://www.nasdaq.com/article/yellens-speech-3-possible-scenarios-and-their-effects-on-the-market-cm670082#ixzz4INWwkbTn

    My Coles Notes Version of Martins take on outcomes from Yellen…

    1. markets in general seem to be priced for no rate hike in the near future.

    If that, or something similar is said, look out below! The dollar would jump, pushing oil and other commodities lower and bond yields would quickly adjust upwards, but the worst effect would be on stocks. …a big, sustained drop in stocks is likely.

    Watch SDOW, SQQQ, SPXS, and ETF’s like DRIP/GUSH and NUGT/DUST and UDN/UUP react if the #1 choice is reality Aug 26

    2. Yellen Clearly States that No Hike is Coming This Year:

    …global economic conditions, an election this year, and inflation …allow more time for the economy to strengthen before returning to a path towards normalization. = the spark that the stock market has been looking for to really push through these new highs, the dollar down bond yields would ease.

    Watch SDOW, SQQQ, SPXS go lower, and ETF’s like GUSH and NUGT and react positively if the #2 choice is reality Aug 26

    3. Yellen Doesn’t Mention Rates:
    Completely ignoring the subject of interest rates is not likely either, but giving no clear indication as to what the Fed intends over the next few months

    If Yellen does effectively say nothing, though, the market will take it as a sign that an early hike is less likely, and the effects would be similar to in scenario two.

    Watch ETF’s like DRIP/GUSH and NUGT/DUST and UDN/UUP bounce if the #3 choice is reality Aug 26.

    I think the Markets will react more in Sept 16-30 than they will Aug 26, but the starting gun will fizzle or bang starting tommorrow

    Best luck to all of you sitting in CASH,

    Aug 25, 2016 25:14 PM

    Hillary has bribed Yellen to not raise rates. Does anyone know who has the biggest rear, Merkel or HRC?

      Aug 25, 2016 25:00 PM

      Derrière sounds more presidential!

    CFS
    Aug 25, 2016 25:47 PM

    Yellen’s a Democrat.

    Aug 25, 2016 25:49 PM

    A2A with Dr. Dave Janda of Operation Freedom

    After a 20-minute discussion on American healthcare, Dr. Janda fielded questions from the audience on topics such as:

    Vaccines
    Colloidal silver
    The coming economic reset
    His biggest fears/concerns as we head toward 2017
    The good doctor also discusses his recent interview of another friend of Turdville, John Titus. The link to listen to the interview is here:

    http://www.tfmetalsreport.com/podcast/7818/a2a-dr-dave-janda-operation-freedom

    Aug 25, 2016 25:56 PM

    The forecast for oil is still higher in the coming months by major oil companies. When oil was below 30 people were still calling for lower prices. $50+ is needed for oil companies to continue operating. Production is almost maxed out and demand is rising each year by about 3.4%. Shortages coming as soon late 2017. Capital costs have been drastically reduced by the oil majors for future projects so very little new oil is being found for future years. Shortages are therefore coming sooner that you think.

      GH
      Aug 26, 2016 26:35 AM

      Natgas is performing nicely this year as well, and looks like it will continue to do so.

    Aug 25, 2016 25:07 PM

    il Eyes Technical Upside To This Price Point
    By Mike PaulenoffCommodities4 hours ago
    I noted the following thoughts on crude oil Thursday morning:

    Since then, Oil has popped above nearest-term resistance at $47.00, and increasingly looks like the Aug 19-Aug 24 correction is complete– and that a new upleg is in its infancy.

    My near-term work is starting to look and act as if the correction off of the Aug. 19 high at $48.75 into Thursday morning’s low at $46.42 is at or very near completion, which if accurate, also means that oil is close to pivoting to the upside into another upleg that projects to $51-$52 next.

    I am looking to enter a new United States Oil (NYSE:USO) long position soon, in the vicinity of $46.40 and $45.60 — if, that is, oil gets there.

    Aug 25, 2016 25:32 PM

    Dollar General says ,Half of U S consumers are in Dire straits ……zero hedge

      Aug 25, 2016 25:34 PM

      So , let’s rates and put them out of their misery…..

        Aug 25, 2016 25:42 PM

        Raise….. rate…I love this cheap phone

    Aug 25, 2016 25:39 PM

    Housing is is headed south, no not to Florida, Boomers better get a revelation, millienials are not going to buy their oversized McManion.

      Aug 25, 2016 25:53 PM

      Hi Jerry, I think with boomers like myself, now taking care of 4 generations (mother, wife/self, daughter, and grandchildren there just might be a market for those mcmansions.

        Aug 25, 2016 25:06 PM

        Hi Bobby, HOPE all is well with you and family. You know ,,if you did not live on the beach in a nice state like Florida, you occupancy rate might not be so high. Just kidding, your family is lucky to have you….wish more people were like you.

          Aug 25, 2016 25:19 PM

          Good thought,, Btw ,on the multi generational living arrangements.

    CFS
    Aug 25, 2016 25:41 PM
      Aug 25, 2016 25:47 PM

      Give us the story line…way to busy to cover everything

        Aug 25, 2016 25:51 PM

        Btw, how is your solar power investigation coming along

          Aug 25, 2016 25:23 PM

          Have not talked to you lately ,what do you think about silver,?

          CFS
          Aug 25, 2016 25:03 PM

          I’m going to install a system, but it apparently be next year before I get a building permit.
          California Bureaucracy is ridiculous!!!!!
          I’m not even sure anyone except in an airplane will be even able to see the system on my house.

            CFS
            Aug 25, 2016 25:10 PM

            I’m looking forward to next Wednesday for a jump in Silver.

            Aug 25, 2016 25:18 PM

            I’ve been told it will take me at least 8 weeks to get a local council permit for a pool with solar powered heating.
            Thats if they pass the original plans first time around.
            Its ridiculous.
            Cheers.

            Aug 25, 2016 25:44 PM

            Skeeta – do you follow Noble Metals at all (NMM.AX) and if so do you have any thoughts? (they were previously Condoto Platinum before their recent acquisition and then name change).

            Aug 25, 2016 25:47 PM

            Aware of them….yes,
            A shareholder in them….nope.
            Cheers.

            Aug 26, 2016 26:20 AM

            OK – Just doing some research on them and wanted to get your thoughts, because I was thinking you gave me the heads up on Condoto back in the day….

            Regardless all the best with pool and solar powered heating.

      CFS
      Aug 25, 2016 25:58 PM
    Aug 25, 2016 25:42 PM

    A low for the silver-gold ratio is coming soon.

    SLV:GLD
    http://schrts.co/cs2TZn

    Aug 25, 2016 25:45 PM
    Aug 26, 2016 26:50 AM

    WORLD NEWS | Fri Aug 26, 2016 8:27am EDT
    Bolivia says deputy interior minister killed after kidnap by miners
    By Daniel Ramos | LA PAZ

    “Bolivian Deputy Interior Minister Rodolfo Illanes was beaten to death after he was kidnapped by striking mineworkers on Thursday, the government said, and up to 100 people have been arrested…”

    “Protesters have been demanding more mining concessions with less stringent environmental rules, the right to work for private companies, and greater union representation.”

    “The vast majority of miners in Bolivia, one of South America’s poorest countries, work in cooperatives, scraping a living producing silver, tin and zinc. There are few foreign-owned mining firms, unlike in neighboring Peru and Chile.”

    http://www.reuters.com/article/us-bolivia-minister-idUSKCN11100X

      GH
      Aug 26, 2016 26:55 AM

      They’re really battling it out!

      Earlier this year, the gov’t tried to make the rule that the miners can’t use dynamite in protests. The miners said, ‘uh, no, we’ve always used it and we always will. they can’t stop us, we work with dynamite every day.

        Aug 26, 2016 26:33 AM

        Wow – I hadn’t heard about the protesting with dynamite part of it. When you need to emphasize a point —- use dynamite!

          GH
          Aug 26, 2016 26:30 PM

          There’s nothing worse than a boring protest 😉

    CFS
    Aug 26, 2016 26:56 AM

    Andy Hoffman, this morning:
    https://www.youtube.com/watch?v=MAVoCPom5SI

    Aug 26, 2016 26:02 AM

    One of John Embry’s favorites, Wesdome up 55% last 2 days. WDOFF

      Aug 26, 2016 26:06 AM

      Yep – Wesdome has been kicking out the jam. Some say Knick Exploration (KNX) is next since they’re on the same trend.

    CFS
    Aug 26, 2016 26:42 AM

    as a stock owner all I can say is:
    https://www.youtube.com/watch?v=NBjVBbeqf7E
    but as a human being, I must admit I don’t know how you can lie and keep a straight face, Janet, while destroying the economic system.