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Our Market Close for Wednesday

Big Al
December 7, 2016

Today in The Market Wrap Cory and Big Al discuss the continued record highs in the U.S. equity markets; the precious metals sector and, of course, energy.

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Discussion
16 Comments
    Dec 07, 2016 07:07 PM

    $spx is getting close to making new multi year highs vs $gold. IMO it won’t bode well for the gold bull case if $spx does make a higher high vs gold. Expect big volatility in both markets soon in the next few weeks.

      Dec 07, 2016 07:59 PM

      Look at the YCS chart. This explains why gold is holding up. However, I still expect one more low. Even tho the people I follow say gold has bottomed.

      Dec 07, 2016 07:02 PM

      Spanky, disregard my comment below. I’ve got it backwards.

      Dec 08, 2016 08:05 AM

      Stay out of gold and wait to see what happens at $1100 or you will get spanked. GDX 14 to 16 possibly.

    Dec 07, 2016 07:19 PM

    $spx also breaking out now vs commodities (GCC). Moonshot time for the $spx. The gains in the US stock market in real terms since 2009 have been incredible and there doesn’t seem to be any end in sight.

      GH
      Dec 07, 2016 07:21 PM

      Good spot on GCC breaking out to new highs. I used to follow the index it was based on, at the recommendation of Dan Norcini. What was it, the $CCO or something like that? The advantage being that it’s more representative of commodities as a whole because it’s not so heavily weighted oil.

      I can’t find that index now, though, and one disadvantage of GCC is that we don’t have much history to look at on the price charts.

      http://stockcharts.com/h-sc/ui?s=%24SPX%3AGCC&p=W&st=1980-01-15&en=today&id=p41337124549

        GH
        Dec 07, 2016 07:31 PM

        Whereas, if we look at the S&P500 versus the more heavily oil-weighted $CRB, it hasn’t yet broken out to new highs. It’s in a high consolidation after a powerful almost six year climb.

        http://stockcharts.com/h-sc/ui?s=%24SPX%3A%24CRB&p=W&st=1980-01-15&en=today&id=p14403978437&a=492254718

        Sooner or later the trend will reverse to the downside. But for now the next move is uncertain. Will this consolidation break up or down? I think down, but it will likely be months before we know for sure. Meanwhile, I haven’t committed all that I intend to that bet.

    Dec 07, 2016 07:20 PM

    Looking like the reversal of the TNX/PRII indicator is gathering steam. Gold has been very strongly incersely correlated with this indicator, and is a way of measuring interest rates vs. inflation.

    http://schrts.co/bTtSjF

    Dec 07, 2016 07:39 PM

    Here is a link to the Liberty Me book archive. Some good ideas on business, economics, politics and philosophy to peruse.

    https://liberty.me/library/

    Dec 07, 2016 07:01 PM

    AL ! Surreal illusions ! And suddenly something happens ! The Elite in total control !

    Dec 07, 2016 07:15 PM

    Washington Post Appends “Russian Propaganda Fake News” Story, Admits It May Be Fake

    In the latest example why the “mainstream media” is facing a historic crisis of confidence among its readership, facing unprecedented blowback following Craig Timberg November 24 Washington Post story “Russian propaganda effort helped spread ‘fake news’ during election, experts say”, on Wednesday a lengthy editor’s note appeared on top of the original article in which the editor not only distances the WaPo from the “experts” quoted in the original article whose “work” served as the basis for the entire article (and which became the most read WaPo story the day it was published) but also admits the Post could not “vouch for the validity of PropOrNot’s finding regarding any individual media outlet”, in effect admitting the entire story may have been, drumroll “fake news” and conceding the Bezos-owned publication may have engaged in defamation by smearing numerous websites – Zero Hedge included – with patently false and unsubstantiated allegations.

    It was the closest the Washington Post would come to formally retracting the story, which has now been thoroughly discredited not only by outside commentators, but by its own editor.

    The apended note in question:

    http://www.zerohedge.com/news/2016-12-07/washington-post-apends-russian-propaganda-story-admits-it-may-be-fake