Exclusive KE Report Commentary – Fri 2 Jun, 2017

Chris Martenson – Recapping the Jobs Number, Beige Book and Home Price Increases

There has been a lot of news out this week that apparently the markets don’t care about but we do. Co-Founder of Peak Prosperity Chris Martenson shares his thoughts on the disappointing jobs number released today and relates the data to the Beige Book from earlier in the week.

Chris will also be on this week’s show discussing the growth of the ECB and BOJ balance sheets.

Click here to visit Chris’s website for some great posts on the economy, finance, and general discussions.

Click download link to listen on this device: Download Show


Featuring:
Chris MartensonCory Fleck
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Comments:
  1. On June 2, 2017 at 10:36 am,
    OOTB Jerry says:

    We all know the FED has be lying for years…..
    Apple sales will be going south………Iphone for $700-1000 every two years is not going to cut it…..kids are going to have to go back to a flip phone…………… 🙂

    • On June 2, 2017 at 11:15 am,
      Silverdollar says:

      “Apple sales will be going south”. I disagree. I believe there will be a time when selling apples on the street may be the only thing some will be able to do! 🙂

      • On June 2, 2017 at 11:32 am,
        OOTB Jerry says:

        ha.ha,ha……..good one……..

        • On June 2, 2017 at 11:33 am,
          OOTB Jerry says:

          🙂

  2. On June 2, 2017 at 10:44 am,
    OOTB Jerry says:

    Amazon would not be opening brick and mortar stores if their sales were so great…
    Walmart is going to eat some of Amazon’s lunch, with having their employees deliver products on their way home….Walmart has employees not robots….. 🙂

  3. On June 2, 2017 at 10:58 am,
    Excelsior says:

    GDXJ’S EPIC REBALANCE
    by Kevin Muir — on GDXJ , GDX , VanEck , gold June 2nd, 2017

    http://themacrotourist.com//macro/gdxjs-epic-rebalance

    • On June 2, 2017 at 11:17 am,
      Silverdollar says:

      Good article also on ZH. No wonder 7-8 of my issues are having a bad time. Seems to me like the equivalent of USERX liquidating their holdings…….who’s going to pick up the slack?

      • On June 2, 2017 at 11:35 am,
        Excelsior says:

        SGDM and SGDJ and GOEX may grab some if investors rotate out of GDXJ to get more exposure to those companies in ETF form.

        Other than that, it will be the bottom-fisher investors (with money parked on the sidelines in wait of the selling to be over) that will pick up shares on clearance sale.

        Many investors and newsletters advising to wait for the selling to end then buy, but the question come down to — Will they buy? Will the downside momentum overwhelm an environment without enough buying, and thus, start a sharper decline? Conversely, Will this new bottom-fishing buying be enough to exhaust selling, cause shorts to cover, and kick off a new rally?

        GDXJ rebalancing should be mostly over by June 17th, but most of the selling has already been front-run. If there is any remaining weakness it may be a good opportunity in a number of mid-tiers and larger Jrs.

        • On June 2, 2017 at 11:40 am,
          Excelsior says:

          Another area to consider are companies doing interesting field work this Summer. A nice Exploration program with lots of VTEM surveys, Geo-chem work, Chip sampling, , Trenching, Drilling news, Resource Expansions, PEAs, PFS, FS, Permitting success, metallurgical testing, etc will move the smaller Explorers and Developers even during tough times.

          • On June 2, 2017 at 11:46 am,
            Silverdollar says:

            Ref your thoughts: “Many investors and newsletters advising to wait for the selling to end then buy, but the question come down to — Will they buy? Will the downside momentum overwhelm an environment without enough buying, and thus, start a sharper decline? Conversely, Will this new bottom-fishing buying be enough to exhaust selling, cause shorts to cover, and kick off a new rally? ” I found it interesting that PPP was not on that list. Are they too large of a Co.? Anyway, if GDXJ hasn’t any to sell, maybe it’s time to buy………..

          • On June 2, 2017 at 12:48 pm,
            Excelsior says:

            I believe $GDXJ dropped (PPP) from the index according to this chart that was posted back in March from The Macro Tourist:

            http://themacrotourist.com/images/2017/04/DeletesApr1917.png

            That would account for a great bit of the selling as of late, but it looks like they have finished as Primero is no longer showing up on that newer list of reductions.

          • On June 2, 2017 at 12:51 pm,
            Excelsior says:

            Based on that it appears that GDXJ just finished selling 13,500,000 shares of Primero over the last few weeks. Glad that is over with for them, but some of the other stocks are still being sold down based on the “Epic Rebalance” article above.

          • On June 2, 2017 at 1:13 pm,
            Excelsior says:

            (PPP) Primero Provides an Operations Update; Remains On-Track to Achieve 2017 Production Guidance
            06/02/2017

            “Primero continues to see operational improvements at both of its mines, and the Company remains on-track to achieve its 2017 production guidance of between 140,000 to 170,000 ounces of gold equivalent.”

            http://www.primeromining.com/English/investors/news/press-release-details/2017/Primero-Provides-an-Operations-Update-Remains-On-Track-to-Achieve-2017-Production-Guidance/default.aspx

    • On June 2, 2017 at 1:19 pm,
      BDC says:

      How do you catch a falling knife? — By the handle.

      • On June 2, 2017 at 1:44 pm,
        Excelsior says:

        Nice. I thought that article by Kevin Muir was quite humorous with the Trainspotting intro and then his compulsion for catching falling knifes. It is a dangerous preoccupation 😮

        • On June 2, 2017 at 3:26 pm,
          BDC says:

          I missed the significance of April 12th. Now a subscriber. Thanks for the link!

          • On June 2, 2017 at 11:21 pm,
            Excelsior says:

            Yes, April 12th was when the selling for GDXJ kicked off, and most of the selling should be wrapped up the 16th.

            Here’s a list of the companies that remain to be sold down going into the next 2 weeks:

            http://themacrotourist.com/images/2017/06/TableJun0217.jpg

          • On June 3, 2017 at 12:07 am,
            Excelsior says:

            These excerpts from that GDXJ Epic Rebalance article stood out:

            “A month and a half ago I wrote about the problems facing VanEck with their Vectors Junior Gold ETF (GDXJ). My piece “The real message from the GDXJ mess” highlighted the risks from the forecasted index changes. The rebalancing of small cap precious metal companies that made up the index was unprecedented.”

            “TD Index Specialist Peter Haynes recently wrote a report where he described the rebalance as “the single greatest wealth destruction event in index history.” He included a great chart that showed that the stocks with forecasted weight reductions have declined 15.7% while the adds are down only 3.3%.”

            “I haven’t seen that much red since I pulled up Fannie Mae’s portfolio in the depths of the great financial crisis. Those are some f’ugly numbers.

            In all my years of trading indexes, I have never witnessed that sort of selling in front of a rebalance. These stocks have been pummeled. Devastating.

            I realize the actual official index announcement has not even been released. It would usually make sense to wait for the selling to crest in the days a little closer to the actual rebalance. After all, we are still two weeks away from the June 16th rebalance day….”

  4. On June 2, 2017 at 3:50 pm,
    Wolfster says:

    For those following silver here’s an interesting article by Adam Hamilton regarding a potential silver short squeeze
    http://www.321gold.com/editorials/hamilton/hamilton060217.html

    • On June 2, 2017 at 11:12 pm,
      Excelsior says:

      Thanks Wolfster. It is always interesting to get Adam’s thoughts (especially on Silver).

      • On June 2, 2017 at 11:19 pm,
        Excelsior says:

        A few excerpts from that article with Adam Hamilton linked above:

        “Silver has suffered a lackluster year so far, really lagging gold’s upleg. Sentiment is still reeling following silver’s crushing selloff from mid-April to mid-May. But that plunge was largely driven by extreme silver-futures selling by speculators, including a blistering spike in short selling. The resulting excessive shorts have left silver with excellent near-term potential for a short squeeze, which would catapult it rapidly higher.”

        “Technically, silver ultimately acts like a leveraged play on gold. The yellow metal has long been silver’s dominant primary driver. Investors and speculators alike flock to silver when gold is rallying, forcing this tiny market to surge dramatically. But when gold sentiment is weak due to lackluster price action, silver demand from traders dries up. Thus silver drifts listlessly or grinds lower, compounding bearish psychology.”

        “The bottom line is silver is set up for an imminent potential short squeeze. A likely forced liquidation of a huge long position enticed speculators to flood into silver-futures shorts between mid-April and mid-May. That fueled a massive shorting spike, leaving shorts exceptionally high despite some covering buying since. These remaining shorts must soon be covered by buying offsetting longs, driving silver sharply higher.”

        “Given the extreme leverage inherent in silver-futures trading, these speculators can’t mess around with the next FOMC meeting looming. Silver has surged sharply after all three previous Fed rate hikes in this latest cycle! So major buying to cover is actually highly likely before mid-June’s universally-expected next rate hike. This short covering will probably entice in long buying, amplifying silver’s near-term upside.”

  5. On June 3, 2017 at 2:03 am,
    Excelsior says:

    Ethereum: SHOCK and AWE!! (Bix Weir)
    RoadtoRoota

    Bix Weir takes a deeper look at WHY Ethereum has risen so much and was BLOWN AWAY by what he discovered.

    https://www.youtube.com/watch?v=T6Unrzxnkp4

    • On June 3, 2017 at 2:55 am,
      Excelsior says:

      I don’t hold any crypto currencies or related stocks, but this explanation of Ethereum by Bix was helpful to get my head around their platform and their crypto Ether. This is not a suggestion to buy into the mania, but just a funny and engaging discussion to mull over how other blockchain technology is building off their platform.

      • On June 3, 2017 at 5:32 am,
        BDC says:

        Now an important, possibly ‘the’ important,
        aspect to be discussed is: “What is Money?”

        • On June 3, 2017 at 5:38 am,
          BDC says:

          See the new thread below.

  6. On June 3, 2017 at 2:24 am,
    Excelsior says:

    (EMX) Eurasian Minerals Inc. (Scott Close)
    Metals Investor Forum May 2017 – Corporate Presentation
    Beneath The Surface – #ProspectGenerator #Royalties

    https://www.youtube.com/watch?v=0yox9u36gek

  7. On June 3, 2017 at 5:42 am,
    BDC says:

    Decades ago Jude Wanniski
    described Money as being:

    1. Medium of exchange.
    2. Store of value.
    3. Unit of account.

    The third aspect is key:

    What characteristic of Money
    should honest folks demand?

    Equilibrium through time,
    in a universe where true
    equality does not exist!

    • On June 3, 2017 at 6:16 am,
      BDC says:

      “Equilibrium through time, in a universe
      where true equality does not exist.”

      If accepted as a goal: How do we achieve it?

      • On June 3, 2017 at 12:38 pm,
        Excelsior says:

        That is the question – “How do we achieve it?”

        Humanity has been working on that one a long time…..

    • On June 3, 2017 at 7:09 am,
      BDC says:

      To maintain equilibrium, the quantity of Money must
      match both the creation and the destruction of Wealth.

      • On June 3, 2017 at 7:16 am,
        BDC says:

        America’s colonial scrip succeeded in this.

    • On June 3, 2017 at 7:26 am,
      BDC says:

      Good Money will enable the pricing of Wealth
      both in the moment and relatively through time.

      • On June 3, 2017 at 7:33 am,
        BDC says:

        Such Wealth valuation is required for good decision making.

        • On June 3, 2017 at 12:39 pm,
          Excelsior says:

          Great points and the preserving wealth relatively though time has always been the challenge, and the pitch behind precious metals or diamonds etc…

          • On June 3, 2017 at 4:47 pm,
            BDC says:

            Thank you! Gold was used by Bretton Woods as a ‘governor’ (e.g. steam engines) but not for direct Money backing. Colonial scrip did not require this, as most often their leaders were trusted “to do good” and they exuded “the idea of progress.”

            Increasing Wealth resides in our ability to create its physical manifestation, and this begins with individual creativity.

    • On June 3, 2017 at 7:37 am,
      BDC says:

      The Money must be consistent throughout the economic system.

    • On June 3, 2017 at 7:57 am,
      BDC says:

      ‘Money’ that does not represent Wealth cannot create Wealth.

      • On June 3, 2017 at 7:59 am,
        BDC says:

        “Bad money drives out good.”

        • On June 3, 2017 at 8:06 am,
          BDC says:

          To drive out “bad money” usury must be eliminated.

          • On June 3, 2017 at 12:40 pm,
            Excelsior says:

            Agreed with eliminating usury but it would be a complete system reset at this point. The change that would cause would be hard to imagine, but an interesting thought experiment regardless. Thanks BDC.