Concerns for the equity markets – Charts and delinquencies
If you look at the longer term charts for the US equity markets (we focus on the NASDAQ) the last 8 months can be considered a euphoric move. More than just the charts there are signs int he debt world that are also worrisome. Chris Vermeulen, The Gold and Oil Guy, shares his thoughts on the health of the US markets and some underlying signs he is worried about.
Click here to visit Chris’s website for more market commentary.
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Interesting that no comments on this – is it, perhaps, that people do not want to hear the bearish outlook that CV is warning about.
Provident Financial – a subprime loan lender – in the UK is worth looking at. Shares fell massively on Tuesday and people with long memories are asking themselves whether this is just like Northern Rock in 2008.
Corey,
regarding Chris’ perspective, I wonder if Rick is still pumping Amazon? I’d like to hear if he continues to think its still going to the moon or if the party is coming to an end?
Bob, yes it is interesting the lack of comments. Could be an indication of investor sentiment (bullish and dont wanna hear the floor is about to drop)
Here is my DotCom Do-Over article showing what Cory and Talked about: http://www.activetradingpartners.com/dot-com-bubble-do-over/
Also, these are the Delinquencies rising warning of a financial bear market: http://www.activetradingpartners.com/delinquencies-pile-up-will-commodities-make-a-massive-move-soon/
Yes Chris, that was my first thought also – that you said things that people do not wish to hear.
I’ve listened to your conversation with Corey 4 or 5 times since as there is a lot of thoughts and info in there to digess.
I think what most people do not wish to hear is the possibility that a big drop in the conventionals also takes down the PM mining stocks also. Thebase metal mining stocks would also be hit in such a scenario.
I think the USD is so key at the moment. If the USD can find a base and begin to climb that will make the US market a lot more attractive to money from outside of the US. If people suspect a strong USD rally for months I think we could see a load of money flood into the US tech stocks.
But let’s see what Yellen says on Friday – no doubt it will be confusing.
Thanks for those links – what you wrote makes a good deal of sense. Very interesting.
The contraction leading to a collapse in commodity prices is fascinating, especially considering this big surge we have seen in copper and iron in recent weeks. It almost feels as if it is one last pump and dump from the hedgies when it comes to copper.
I watch a lot of the copper miners on the FTSE and also miners such as Teck – have to admit that I am kicking myself for missing this recent move but, well, I am still scratching my head trying to work out what caused it.
I note the bearish ending diagonal in the ES (sept), with break down, subsequent rally back and break again today.
Germany repatriates $31 billion in gold from Paris and New York
by Alanna Petroff and Charles Riley – August 23, 2017
http://money.cnn.com/2017/08/23/investing/germany-gold-reserves-new-york-paris/index.html
Good listen and somewhat different tack by Chris………Personally I think things could happen a lot faster and there may be some huge moves on monthly charts but one will have missed much of the fall when it happens.
As an example, new home sales are down big and when real estate joins vehicles and retail…….what’s left???
Bitcoin higher than gold? The world awash in oil? No inflation ? Low unemployment? Low interest rates? All I can see is refinance existing debt and go to work. All governments should look at this as a time for reset.
FMS