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The reasons US markets are looking at new all time highs

Cory
April 26, 2017

With the Russel 2000 at another all time high and the S&P very close to closing at a daily all time high we need to consider why this is happening. Chris Temple joins me to discuss the reasons why the markets are at this level as well as the risks ahead that could move the markets down.

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Discussion
47 Comments
    CFS
    Apr 26, 2017 26:13 AM
    Apr 26, 2017 26:21 AM

    Too the Moonnnnnnnnnn

    CFS
    Apr 26, 2017 26:28 AM

    TRUMP SCHEDULE
    Wednesday, April 26, 2017

    10:30 am || Receives his daily intelligence briefing
    11:20 am || Makes remarks and signs an order to review federally protected land designations; Department of the Interior
    12:30 pm || Lunch with Vice President Pence
    1:30 pm || Meets with Secretary of State Tillerson
    2:30 pm || Participates in a federalism event with Governors and signs the Education Federalism Executive Order; Roosevelt Room
    3:00 pm || Drops by a briefing for senators on North Korea; Eisenhower Executive Office Building
    4:30 pm || Holds a National Teacher of the Year event

      Apr 26, 2017 26:10 PM

      5 pm: Tweet, everything is a disaster and every country in the world is to blame for our troubles.

    Apr 26, 2017 26:29 AM

    Interesting that you use Catepillar as a reference to the global economy.
    Catepillar’s top line number was smaller than the previous release.
    The bootom line number blew away analysts number but it didn’t come from increased sales.

      Apr 26, 2017 26:01 PM

      Things were less bad — more encouraging was the CEO’s discussion of a pickup in orders in some segments. Better than I expected to hear, though I’m not suggesting we pop champagne corks.

      Apr 26, 2017 26:01 PM

      The downside, of course, is take a look at U.S. Steel and some other less dramatic weakness in steel/iron ore/overeager infrastructure stocks.

    Apr 26, 2017 26:01 AM

    Chris is spot on again…… jmo

    Apr 26, 2017 26:05 AM

    SLV is going to collapse. It’s 5 and 3 day RSI’s are at extremes. So expect some sort of dead cat bounce, maybe just for a day. 8 days in a row down. Can we make it 9 tomorrow?

    Quite frankly, it’s a short under the 100 day EMA. That is a safe stop. Given the extreme bearish CoT structure, this could get extremely ugly. The weekly stochastics are still in overbought territory. Where will silver be when they finally get to oversold levels?

    It all depends on the yen. If the yen decides it is going to put in a major correction on the weekly chart (i.e., the weekly stochastics go to oversold) kiss the metals–especially silver–good bye.

    Apr 26, 2017 26:09 AM

    Central bank is in control, print some more paper…….no problem….another Trillion here and there makes no difference at this point. Just buy, be happy. 🙂

    Apr 26, 2017 26:10 AM

    Silver still stinks………. 🙂

      Apr 26, 2017 26:36 AM

      silver $17.35……what a treat ……..tricker treat………going south for the summer..

    Apr 26, 2017 26:11 AM

    Load up on the miners…….buy low…..

    Apr 26, 2017 26:13 AM

    Bix Weir out with a message on BItcoin……going to the moon……better buy now….

      Apr 26, 2017 26:42 AM

      Already have my rocket loaded and ready to go.

        Apr 26, 2017 26:45 AM

        Bitcoin,$SSEC,$GOLD=Chinese volatility indicator priced in Gold.

    Apr 26, 2017 26:17 AM

    GOLD…..into China via Hong Kong DOUBLED………zerohedge

    Apr 26, 2017 26:20 AM

    I think GDX is in danger of going sub $18 in the next few months and possibly to retest its 2016 low in the $13 area eventually. I actually think this is the most likely scenario based on the monthly chart and past analogs (e.g., $sugar from ’99 to ’02). We have a death cross (see $hui) and the monthly stochastics are below 50 and pointed down. This months candle is going to be a giant red candle, and unless we rally like crazy in the next 2 days, it virtually guarantees follow through to the downside. There is absolutely nothing bullish on the monthly chart.

      Apr 26, 2017 26:38 AM

      You’re jumping the gun again, Spanky. Neither GDX nor GDXJ have even touched the 200 week MA yet!

      http://stockcharts.com/h-sc/ui?s=GDXJ&p=W&yr=2&mn=5&dy=13&id=p29964051251&a=520220622

        Apr 26, 2017 26:52 AM

        There is absolutely no catalyst for commodities or metals–none. As long as the US continues to tighten relative to the BoJ and the ECB, kiss commodities and the PMs good bye.

        The HUI is already under its 200 WMA. Unless we get a major bounce back by Friday, there will be follow through next week to the downside. The next target is the lower weekly bollinger band. Let’s not even mention the horrific monthly candle which assures a bare minimum a lower monthly low in May.

        I’ll give you credit, you are ever the optimist, but the writing is on the wall. I’m sure you will stick to your bull market thesis all the way to GDX 13 and $HUI 100. And we may very well be in a bull market but I think we are going to get pretty close to the 2016 lows at a bare minumum. Definitely sub $18 (which is probably only a week or two away).

          Apr 26, 2017 26:13 AM

          I don’t believe that I am an optimist. I simply crunch every bit of info I can manage. At the depths of the bear a couple of years ago, I stayed extremely bullish about the big picture while many were either sure or worried that we were in for a secular bear that had many years to go. My convictions are not based on hope, they’re based on work.

          You should be very careful with assumptions like the one you began with: “There is absolutely no catalyst for commodities or metals–none.”

            Apr 26, 2017 26:38 AM

            I hope you are right. I am still long but I have zero expectations right now other than completely negative. Don’t get me wrong, the weekly charts are still hanging in there, but the $silver CoTs have me extremely concerned.

    CFS
    Apr 26, 2017 26:24 AM

    Barkerville drills 14.55 m of 13.63 g/t Au at Cariboo

    2017-04-26 08:11 ET – News Release

    Mr. Paul Geddes reports

    BGM INTERSECTS 13.63 G/T AU OVER 14.55 METRES AT SHAFT ZONE

    Barkerville Gold Mines Ltd. has made a new discovery from the continuing 130,000-metre phase 2 Island Mountain exploration drilling program at the company’s flagship Cariboo gold project. The company is currently exploring and delineating the Valley zone with four drill rigs. Detailed drilling results, a drill hole location plan map, level plan and longitudinal section are presented on the company’s website.

    Apr 26, 2017 26:28 AM

    Canada real estate crash ……..large mortgage lender in trouble………bubble time…….zerohedge

      Apr 26, 2017 26:50 AM

      Canada housing regulators warn of housing problem……zerohedge

        Apr 26, 2017 26:51 AM

        The golden shower heads are going to be turned off………

      Apr 26, 2017 26:05 PM

      It is a not a significant mortgage lender. The big banks do most of the mortgages and they are solid.

    Apr 26, 2017 26:29 AM

    this looks more like May of 2015 than January 2016. In may of 2015, we got a waterfall decline that ended in July-August 2015.

    I think we are going sub 150 on $hui this time and probably get close to 100–maybe 120-130, before basing out. What a POS.

      Apr 26, 2017 26:33 AM

      I think you are correct on the HUI

        Apr 26, 2017 26:34 AM

        sub 150…..not sure about the 120

    Apr 26, 2017 26:32 AM

    SiLver $17.35……….going to $16 territory next………

      Apr 26, 2017 26:38 AM

      72.68……..gold to silver ratio………

    Apr 26, 2017 26:53 AM

    Trump going for Tax breaks for everyone………stock market will explode….going higher than high , all is well…. 🙂

      b
      Apr 26, 2017 26:36 AM

      Yup, I can see lots of people jumping on gold as the stock market goes higher.

        Apr 26, 2017 26:56 AM

        B: The more people that jump into the conventional market,the more bullish of precious metals I become. Of course I have time on my side. The only worry I have with gold is if the neighbors buy metal detectors and start prospecting my yard.

          b
          Apr 26, 2017 26:02 PM

          lol, thats funny john.
          Seriously, I know a fellow that buried his metal under his garage floor.
          Just cut the hole and re cemented the floor.

          Apr 26, 2017 26:37 PM

          +1 JohnK

      Apr 26, 2017 26:37 AM

      Downsize the government to pay for the tax cuts, fat chance! They will probably hire more for the newly created tax cut department. DT

        Apr 26, 2017 26:43 AM

        Who said anything about downsizing govt., why, that would be unamerican…… 🙂

        Apr 26, 2017 26:47 AM

        You Canadian guys, need to get another real estate loan before the market closes…, understand a big bank/lender of mortgages is in trouble…..see zerohedge btw , do not worry about the price or the bubble bursting,,it is just a story to scare you out of action, where there is gigantic profits…

          Apr 26, 2017 26:48 AM

          Don’t tell OWL……he already has to much real estate……. 🙂

          Apr 26, 2017 26:15 PM

          99% or so Canadians have never even heard of this company. They likely do less than one out of every 100 mortgages. People generally go the 5 major banks: TD, Scotia, BMO, TD, CIBC. I have never gone outside these banks.