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S&P short of 2,400 and the CRB chart breakdown

Cory
May 9, 2017

Another slow day across the board but there are a couple chart levels that we can watch for this week. First the S&P just can not seem to close above 2,400. It surpassed this level intraday but could not hold by the market close. Next is the CRB index which is breaking down from its trading range of over a year. If there is a continued follow through commodities will have a tough fight to get investors back. A final couple comments are made on the silver and gold charts. Watch those uptrend lines on a weekly chart.

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Discussion
77 Comments
    May 09, 2017 09:05 PM

    The low for the CRB last week was one cent above its August low last year…

    http://stockcharts.com/h-sc/ui?s=%24CRB&p=W&yr=3&mn=3&dy=22&id=p62550445046

      May 09, 2017 09:28 PM

      Let’s see if it break below this week. I am hoping not…

    CFS
    May 09, 2017 09:21 PM

    Silver, David Morgan, same old stuff on Proven nd Probable:

    https://www.youtube.com/watch?v=xpbxLzsQWE8

      May 09, 2017 09:45 PM

      Silver closed down for the 15th day in a row @ $16.15. The “New Normal.”

      #NothingToSeeHere

      https://www.youtube.com/watch?v=rSjK2Oqrgic

        May 09, 2017 09:52 PM

        Ha, ha, ha…………good one” new normal”…………wash and rinse, do not forget to fold after drying.

        May 09, 2017 09:53 PM

        Morgan out pumping up his tires……..

          b
          May 09, 2017 09:58 PM

          no idea what bob sees in morgan.
          his claim to fame was recognizing american coins were no longer silver in 65.
          the way he tells it he was the only guy to figure silver musta bin worth sumtin.

          May 09, 2017 09:04 PM

          I’ll always give David Morgan credit for being the final brick in the wall that got me to order my first round of Silver Bullion. I got a DVD in the mail with him on it after attending a coin show, and got more enthralled with investing from that point forward.

            May 10, 2017 10:06 AM

            I will give Dave credit for his efforts to make people aware of the value of silver……..I realized in 1961 that silver was special. I received a 1880 $1 Morgan Silver Dollar(not a david morgan silver dollar) on my paper route, checked the price at the local drug store which had a coin magazine , the value of the coin was $1.50, ..I just made 50% , I figured at the time there was extra value to silver coins…..So, I beat Morgan by 4 yrs……I should be writing a news letter…… 🙂 …………

            May 10, 2017 10:13 AM

            SILVER is a screaming buy…………any number around $16………..JMHO

            May 10, 2017 10:44 AM

            OOTB let me know when you start your newsletter as I’ll subscribe.

            May 10, 2017 10:47 PM

            Maybe in my second life……… 🙂 Then again, who knows…… 🙂

    May 09, 2017 09:24 PM

    The CRB is being propped up by oil. To get a better picture of the horror show that is commodities, look at GCC, which is an ETF based on the now defunct $CCI, which was an unweighted commodity index.

    GCC looks like it might bounce here, but the monthly chart is a disaster and the monthly momentum indicators are all rolled over and headed down. New lows are almost guaranteed at this point. Absolutely pathetic showing in 2016. It rallied for basically 4 months and has been down for nearly a year. The monthly stochastics couldn;t even get close to overbought before rolling over–despite the fact that the it has been 6+ years since the stochastics reached over bought. 2016 looks like nothing more than an epic sucker’s rally to reset extreme sentiment, and it worked a treat in that sense.

    CFS
    May 09, 2017 09:26 PM

    Cory, the world banking system is pumping in new “money” at about $250 billion a month….. where do you think it can go, other than, sovereign bank balance sheets, and into banks for speculation?

      May 09, 2017 09:29 PM

      All we can expect is for it to go where it has been going. So much of this free money has been dumped into the system. I am very interested in if the central banks actually follow through on tapering and unwinding their balance sheets. I think it will take a long time.

        CFS
        May 09, 2017 09:37 PM

        I do not see how they can unwind balance sheets without causing a worse depression than 1929.

        Unless somehow government waste can be cut by 90% and the odds of that are 10 exp(-1,000,000). i.e. zero.

    May 09, 2017 09:38 PM

    The Next Bull Market Move Interview with Collin Kettell, CEO & Partner, Palisade Global Investments Ltd
    by @bullmarketmove on May 9, 2017

    “I caught up with Collin Kettell last week and we talked about Cobalt, his experience from the last Uranium bull market, and what goals Palisade Global has for the rest of the year.”

    https://ceo.ca/@bullmarketmove/the-next-bull-market-move-interview-with-collin-kettell-ceo-partner-palisade-global-investments-ltd

      May 09, 2017 09:18 PM

      Is Cobalt The New Lithium? – Disruptive Discoveries Editor
      May 08, 2017
      Guest(s): Chris Berry President, House Mountain Partners

      “Aside from precious metals, investors were interested in other metals like lithium and cobalt at the Mines & Money conference in New York; and, to newsletter writer Chris Berry, cobalt may be the metal to watch right now. ‘I’m actually more excited and intrigued by cobalt than I am about lithium just because of the fact that almost all of it is produced as a by-product and almost all of it in the tune of 60% comes from the DRC,’ he told Kitco News. The problem? ‘There’s really no way to get pure play exposure,’ he explained.”

      http://www.kitco.com/news/video/show/Mines–Money—NYC/1592/2017-05-08/Is-Cobalt-The-New-Lithium—Disruptive-Discoveries-Editor

    May 09, 2017 09:41 PM

    When gold closes less red–that is now what a “rally” in gold means.

      May 09, 2017 09:31 PM

      Hahaha when you put it that way spanky it doesn’t sound so good 😉

    May 09, 2017 09:42 PM

    ‘I Can’t Help But Think Gold Has To Go Up’
    May 9, 2017

    “Although not an ultra-bull, one speaker at the Mines & Money conference expects gold prices to move higher. “As long as the Fed is trailing inflation then it’s good for gold,” Robert Cohen, portfolio manager for Dynamic Funds, told Kitco News on the sidelines of the event. “I look at the monetary policies going on around the world and I can’t help but think gold has to go up because these policies are so loose.” He added he expects inflation to pick up more than it already has, another positive for the gold market.”

    https://www.youtube.com/watch?v=7hTGCkcyW6Q

    May 09, 2017 09:54 PM
    CFS
    May 09, 2017 09:55 PM

    Off Topic, but a good summary of thoughts,post-election France:
    https://www.youtube.com/watch?v=-mnoc7odpLU

      May 09, 2017 09:59 PM

      SEE ABOVE

      May 09, 2017 09:13 PM

      Noticed Gold went up on the news……………

    May 09, 2017 09:30 PM

    The writing is on the wall. Get ready for one last sucker’s rally before they pull the plug.
    http://stockcharts.com/h-sc/ui?s=GLD&p=D&b=5&g=0&id=p75301841687&a=522888937&listNum=1

    CFS
    May 09, 2017 09:42 PM

    Bottom-line, however, Trump will not order investigation into HRC.

    He really is a RINO.

    May 09, 2017 09:23 PM

    I wonder if this is the first time silver has dropped for 16 consecutive days…

    http://stockcharts.com/h-sc/ui?s=%5ESIN17&p=D&yr=1&mn=0&dy=13&id=p89951092796

      May 09, 2017 09:25 PM

      No worries Mathew.It’s going up tomorrow.

        May 09, 2017 09:35 PM

        John, I’m not worried in the least. Such a run is just an amazingly improbable occurrence. The odds are very good that we do see a rise tomorrow.

          May 09, 2017 09:18 PM

          Mathew I know your not worried.
          The consecutive drop in the Silver Futures just goes to show you how the players can control the futures and that is just a fact of life.
          I been watching the volume in the July month in the Silver futures. I missed yesterdays numbers,but todays volume in the July month was approximately 20,000 less than it was on Friday.

            May 09, 2017 09:35 PM

            That’s interesting. Thanks.

            May 10, 2017 10:19 AM

            JohnK:

            Of course players control the futures markets.

            But it’s the weak hand speculators who are unloading their long positions who are driving the prices lower. They always buy at tops and sell at bottoms.

            May 10, 2017 10:14 AM

            Thanks Mr Moriarty. There’s a reason why only 10% of futures traders consistently make money. I just finished J. Peter Stedlmayers book “A New Approach to Trading”One of the most insightful books that I have read in a long time.”The best kind of trade is the tough trade,you won’t have a lot of company and it makes you lonely.”

      May 09, 2017 09:32 PM

      Nov -dec ’15 was bad too

        May 09, 2017 09:39 PM

        That one ended at 15 days.

      May 09, 2017 09:08 PM

      Well Silver out-performs on the upside AND the downside… This is getting a bit nuts though.

        May 09, 2017 09:09 PM

        WingNuts…. that is….. 🙂

    CFS
    May 09, 2017 09:29 PM

    Meanwhile yesterday in Australia muslim mob beats up police:

    https://youtu.be/mw_X4OuHKyU?t=649

    May 09, 2017 09:37 PM

    Gold is up 8.3% versus the yen since October. (Was up 12% as of last week.)

    http://stockcharts.com/h-sc/ui?s=%24GOLD%3A%24XJY&p=W&yr=5&mn=7&dy=13&id=p23826053895&a=522899973

    May 09, 2017 09:12 PM

    Gwen Preston: Fundamental Strength vs Seasons & Uncertainty
    Metals Investor Forum – May 5, 2017

    https://www.youtube.com/watch?v=qONiAsE2OmM

    May 09, 2017 09:02 PM

    Heron Signs Off-take Agreement for Woodlawn Zinc, Copper and Lead Concentrates
    by @nasdaq on May 9, 2017

    https://ceo.ca/@nasdaq/heron-signs-off-take-agreement-for-woodlawn-zinc

      May 09, 2017 09:07 PM

      Heron Awards A$107M EPC Contract at Woodlawn
      by @nasdaq on May 3, 2017

      “Heron executes a A$107M guaranteed maximum price EPC contract with Sedgman for a 1.5 million tonne per annum mineral processing plant and associated infrastructure at Woodlawn”

      “This major milestone positions Heron to commence construction and development immediately following completion of project financing”

      https://ceo.ca/@nasdaq/heron-awards-a107m-epc-contract-at-woodlawn

        May 09, 2017 09:11 PM

        (HER) (HRR.AX) (HRLDF) Heron is still one of the more undervalued quality Zinc miners I’m aware of and in the last 2 weeks they’ve put out both those back to back press releases with big news.

        I’m looking forward to see this one get in gear.

        Today in the Zinc space belonged to (VTT) Vendetta though….

        Vendetta Mining Corp. (VTT.V)

        $0.26 up +$0.02 (+10.64% gain)
        At close: 3:59PM EDT

    May 10, 2017 10:30 AM

    This rally in miners and metals will be fascinating to watch. Bull or bear, everyone *thinks* they know what is about to unfold.

    May 10, 2017 10:37 AM

    http://stockcharts.com/h-sc/ui?s=%24XJY&p=D&b=5&g=0&id=p42158796774&a=523027642&listNum=1

    We may have just a bit more work to do on yen to the downside before there is a more serious bounce in the metals.

    May 10, 2017 10:05 AM

    The miners had a bullish island reversal in December and they’ve got one now…

    http://stockcharts.com/h-sc/ui?s=GDXJ&p=D&yr=1&mn=7&dy=0&id=p99876388902&a=520792672