Trader Vic -> Weak Economies = Commodities Sell Off
With commodities across the board selling off Trader Vic shares his opinion that this selloff is all due to the continued weak economic data around the world.
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This bull market has survived some terrible shocks: maybe it is destined for a record breaking life after all. Be a bull on America, never sell The US short. Speculation runs in the blood of America, Columbus, Washington, Franklin, had all been speculators.
that reminds me of a scene in Las Vegas Vacation with Chevy Chase, when Clark is talking to Rusty………..
epstein end of day TA
I like that Dick, “speculation runs in the blood of America”. So true!
One of the best interviews I’ve heard in a long time. Thanks Cory.
TLT:GLD popped enough to fill a Jan. 30 gap today…
http://stockcharts.com/h-sc/ui?s=TLT%3AGLD&p=W&yr=6&mn=9&dy=0&id=p42715938027&a=518122837
The dollar is perched on its 50 week MA but doesn’t look good…
http://stockcharts.com/h-sc/ui?s=%24USD&p=W&yr=3&mn=3&dy=0&id=p54416201051&a=520931764
Gold found support at its 20 month MA today – at the middle of the Bollinger bands…
http://stockcharts.com/h-sc/ui?s=%24GOLD&p=M&yr=18&mn=0&dy=13&id=p61676422408&a=514373488
Gold looks headed to 1200 and then a big bounce to near 1250 to 1257 and then down again to the 1150 area in the summer.
$silver was down something like 15 days in a row back in Nov.-Dec. 2015. Looks like SLV is trying to match it this time.
It’s basically open season until June 14. I guess every FOMC meeting where they raise is going to be preceded by an absolute whipping in the metals.
The size of silver’s weekly candle portends follow through to the downside IMO. There is no way in hell we are going to get a weekly swing low off of this weeks candle. Now that being said, we could definitely rally for 2-4 weeks before plummeting again, but there is no way silver gets higher than 17.29 any time soon.
Also, the miner’s monthly charts point to more downside. I base this on the stochastics, which are well under 50 and not yet oversold and the MACD which is on the cusp of rolling over. Now, it is certainly possible that the miners bottom before hitting oversold stochastics and without the MACD turning negative, but I would not bank on it. I have to say, I am not expecting a huge breakdown at this point given how far away the lower monthly bollinger band still is (20,2). On the flip side, the ichimoku cloud lower border is fast approaching, so I think the miners will have to make up their mind by June/July. We’ll see.
Anyone brave enough to buy GG here? Does anyone think it will hold the lower rail?
http://stockcharts.com/h-sc/ui?s=GG&p=W&b=5&g=0&id=p21202213380&a=522010960&listNum=1
Buy it and put your sell-stop at the low for the week. Not a bad bet.
Good to hear from Trader Vic and his macro thoughts and technical analysis.
Thanks guys!
The China implosion effect.