The markets are predicting infrastructure stimulus – Plus Doc is back!
Doc is back and here to help us with the market wrap. We take a look at all of the market moves from a high level to understand what investors are predicting.
Just a reminder about our webinar at 4pm PT. Click here to sign up… Doc might even be joining us!
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Bonzo, I’m just watching NAT and not chasing right now. I don’t think it’s going to get away from us at this time. This is not investment advice but you may want to take a gander at its’ sister company NAO–I’m just starting to nibble. Also, there is a high probability that SLW will hit 19 and then maybe bounce. The technicals still don’t look good and I believe silver will head down to 16 yet.
Thanks, Doc. I know you can’t give investment advice, but who should I bet on in the Michigan-Ohio ST. game? And thanks for getting Trump over the hump in Michigan!
The way the buckeyes handled Nebraska scares me. It looks like they’re finally getting their act together at the end of the football season. Playing away from home doesn’t help Michigan either. I hate to say it but I would give the buckeyes the edge.
Even if you think there will be heavy infrastructure spending, most of the companies are highly valued.
e.g. VMC, which has taken off recently. P/E ratio in the thirties. RSI above 70.
I put out a list off about ten companies in heavy construction under Rick’s section this morning….all up today…..but all highly valued…..no bargains.
It looks like the CME has raised the copper margin $400 to $2300.
Doc, what is your view on CBI and FCX for the near term and the long term and do you still see gold going down to 1225 and GDX to 21? Or, do you think the bottom is in?
Pardu, the technicals on CBI and FCX currently are like reading a murky crystal bowl. The thing I don’t like about the daily chart on FCX is that it has 2 big gaps, a breakaway gap and a continuance gap. I would be very careful with that scenario. Personally, I won’t be chasing that kind of picture. CBI is a little more interesting and looks like it’s trying to bottom here. It hasn’t joined in the party yet and I like those kind of stocks because if this mass hysteria move calms down and these stocks correct back, CBI is then worth looking at technically. In fact, I’m going to put it on my watch list. Yes, the odds are strongly in favor of gold moving down to hit 1225; then the question at that time is whether we see a move even further down. Once it hits 1225 I’ll be better able to give an opinion on what the technicals look like at that time. The odds are very strong for GDX to hit 20 and then potentially lower and GDXJ to hit 34.
Thanks Doc, I appreciate your insight.
Trump rally is like most rallies based on hope and fresh air. Any spending spree is going to depend on massive money printing by the Fed and to believe gold will crash is ridiculous. Unless we see rates rise to 4-5% when people will buy bonds the Fed remains the only game in town. It makes no difference if the fed prints money for hand outs or to dig holes and fill them. Trump may find making America great again far more difficult than anticipated. By the way oil is down as is platinum ? a glut of platinum – not sure on that front. There are money surges that predate president Trump. My feeling – tread carefully.
Apologies if this has been posted before but some H.L. Mencken seems appropriate right now. Please note that I think it applies even if Hillary had won.
“On some great and glorious day the plain folks of the land will reach their heart’s desire at last, and the White House will be adorned by a downright moron.”
“Democracy is the theory that the common people know what they want, and deserve to get it good and hard.”
“Every election is a sort of advance auction sale of stolen goods.”
“Democracy is a pathetic belief in the collective wisdom of individual ignorance.”
“The most dangerous man to any government is the man who is able to think things out… without regard to the prevailing superstitions and taboos. Almost inevitably he comes to the conclusion that the government he lives under is dishonest, insane, intolerable.”
H.L. Mencken
Every decent man is ashamed of the government he lives under.
A clue to what is going on with treasuries can be linked to the changes with the interest rate rules concerning money market funds.
Rumored there is a hidden Q E going on from failures to deliver using the reverse Repo Window.
The Fed has been shoving money into the Wall St banks under the cover of failure to deliver.
Wall St banks have been naked shorting treasuries.
Mike Maloney reported on 10/24/16 that reverse repo volume was up 2 trillion in two months.
A good recap on how to move to Canada….
Ok, that was a riot! LOL!
Worth watching….Trump versus Saudi Arabia and Prince Talal. There are a lot of things I don’t like about Trump but this gives me hope that he will really change things.
Doc, NAT was up 12% today. Do you think the bottom is in? And SLW was down 16.9%
How much lower before you would buy? Thanks.