A turn is coming for US markets and gold
With Doc today we take a closer look at the US markets inability to continue the push higher in the recent couple weeks. It is a slower trading period but the Dow has yet to exceed 20,000 and the technicals are showing a general rollover. This could drive some investors into gold very shortly.
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I had mentioned a sell signal forming in the s&p yesterday and cashed out 100%. GDX rallying was also a sign of a change. Tech stocks have sold off sharply on each rally the past few days. Corrections often start near the end of December as investors get a head start. S&P could head to about 2180 and then rally.
Doc’s thoughts are right on IMHO. As far as Trump and making us great again, well, anybody putting their hope in that is going to be disappointed. What he promises is another Reagan era. Reagan was simply lucky. He had high inflation (CPI of 14.8) which could only go one way; High interest rates of 15% or so which again could not do anything but fall; and debt levels of 863B which was 30% of GDP and an S&P P?E of 7. He took the debt to 2.68T, 50% of GDP and convinced Dick Cheney that debt didn’t matter all that much.
Trump on the other hand has a CPI of 1.6%, 10 year yield of 1.85%: an S&P of 20.4 P/E and a debt level of $19.8T with debt to GDP of 105%. Need I say, different ball game!
I don’t agree with the general consensus that we will see business as usual. I think business is due to come out of its doldrums. Men like Elon Musk and companies like Panasonic are accepting that America is changing and that now is the time to invest at home to make more money than they have ever made before. The change is here and it will only get better. DT
Doc, you are a breath of fresh air.
Can’t say I agree with everything you say, but at least you have a logical thoughtful position.
Havent I been saying right from the start “what if they have a DOW 20k party and nobody shows up?”
There was so much hype and cheerleading regarding this it was obvious it wouldn’t get there.
I think the bell was wrung when even RA a stock perma bull flipped and said DOW 20k was a foregone conclusion. Famous last words.
The $isnt acting like the best alternative currency. Bitcoin is !
And if anyone things China and Europe can fall apart and we will just keep sailing along I have a bridge to sell you.
It will get there after a good correction.
A/b stock perma bear…
Should be an interesting year…..the big zero has 23 days to screw up things , even more.
China has always had a very insular society they don’t look at the world at large, rather they try to control their citizens by suppression and the threat of force. Unless China opens up it’s country to more western thinking they will not be a force for the future, much like Japan they have remained insular and will be very careful how they deal with other countries for fear of loosing control at home. China has a history of rejecting foreign influences and unless that changes the future will not be on their side. DT
Doc what price will gold hit resistance on this bounce?