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Recapping the moves in US markets and copper

Cory
August 22, 2017

Investors seem to be employing the buy the dip strategy today for the US markets while also pushing copper up to $3/pound intraday. Chris Temple joins me to explain why he thinks the markets and copper are moving up.

Click here to visit Chris’s website.

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Discussion
37 Comments
    Aug 22, 2017 22:36 PM

    I think Chris needs to wiggle his microphone connection 🙂

    Aug 22, 2017 22:41 PM

    Wouldn’t a rising USD bring copper, base metals back down to earth with a thud?

      Aug 23, 2017 23:31 AM

      But what would cause the US dollar to rise significantly ??

    b
    Aug 22, 2017 22:45 PM

    If Rickards is right about Trump making peace with N Korea gold could drop with a thud.

    Funny if Dent ended up right all along.

      Aug 22, 2017 22:58 PM

      Had not heard about peace in our time in Korea… but I imagine it would make the conventional stocks soar as well.

        Aug 22, 2017 22:00 PM

        The UK just issued a travel ban re North Korea amid ‘significant risk to British nationals’ and we have apparently sent some aircraft and ships out to Japan – doesn’t sound like peace in our time.

        b
        Aug 22, 2017 22:45 PM

        Trump Will Soon End the Korean War
        August 22, 2017

        Trump Will Soon End the Korean War
        by Jim Rickards, Daily Reckoning:

        The potential for war over the Korean Peninsula is as great as ever. The news cycle we live in is a world of 24-hour updates. With what seems more like 24-minutes between when stories come and go it is easy to lose focus on the major stories.

        The situation in North Korea is absolutely not going away. That’s really important for investors to recognize because this is going to come back again and again.

        “Buying the dip” is a successful strategy — until it isn’t. Now that we have entered the escalatory phase in rhetoric and military preparation, markets have still not come to terms with reality.

        READ MORE

        Shoulda said I read it on sgtreport,

      Aug 22, 2017 22:05 PM

      If gold were to drop on such news it wouldn’t be much and it wouldn’t be for long as dumb money would be doing most of the selling. In other words, if Dent’s target is going to happen, NK will have nothing to do with it.

    Aug 22, 2017 22:56 PM

    Phoenix Rent-A-Mob Seeks ‘Paid Actors’ for Trump’s Visit Tonight

    Things could get really interesting this evening in Phoenix. Just don’t forget that they are paying your fellow Americans to fight against one another! Order out of Chaos is their motto. Killuminati!

    http://investmentwatchblog.com/phoenix-rent-a-mob-seeks-paid-actors-for-trumps-visit-tonight/

    Aug 22, 2017 22:10 PM

    Copper is showing real melt-up potential here:

    http://stockcharts.com/h-sc/ui?s=%24COPPER&p=W&yr=4&mn=5&dy=0&id=p49883074596&a=523146040

    Whether it melts up or not, it is very likely to go significantly higher.

      Aug 22, 2017 22:53 PM

      WE will see what Trump says tonite…….Maybe he will throw McCain under the ship….stuff him in the hull hole

    Aug 22, 2017 22:08 PM

    According to the DEbt Clock
    we have……………………….23million govt workers
    we have……………………….12million manufacturing jobs.

    GH
    Aug 22, 2017 22:31 PM

    Gold miners, the weekly charts look so good to me, and we’ve been seeing important breakouts, but the miners just yawn. Seems like good odds the daily cycle in gold has topped, so I’m starting to lean toward another down move in the miners before we might get a more gratifying move to the upside.

    https://likesmoneycycletrading.wordpress.com/2017/08/21/almost-time/

    b
    Aug 22, 2017 22:23 PM

    What!?! I thought it was “here we go….” lol

    Aug 23, 2017 23:31 AM

    Gold Surging to $1,400 for BofA as Long-Term Rates Stay Low

    August 21, 2017 – Ranjeetha Pakiam

    “Prices will also rise in dollar terms as a shift in economic cycles between the U.S. and Europe strengthens the euro, Francisco Blanch said in a phone interview on Monday. The Federal Reserve is not tightening as fast as people expected, and the European Central Bank is set to start tapering, so “some of that leads to a higher euro eventually, combined with more stagnant long-term rates in the U.S., and that’s a tailwind for gold,” he said.”

    “Spot gold briefly breached $1,300 last week after failing twice this year, and traded at $1,286.67 on Tuesday. Blanch adds to voices expecting higher prices. Evgeny Ananiev, head of precious metals at VTB Capital JSC, a unit of Russia’s second-largest lender, said in an interview this month prices could hit $1,400 by year-end on North Korean tensions and buying from India and China.”

    “Other catalysts that could lift gold are a reversal in U.S. stock markets that have hit records this year and continued subdued inflation in America, which may lessen the chances of further increases in interest rates by the Federal Reserve. Investors will also be eyeing an annual meeting of global central bankers in Jackson Hole, Wyoming, on Aug. 24-26 for clues on monetary policy. Fed Chair Janet Yellen and ECB President Mario Draghi are among the speakers.”

    https://www.bloomberg.com/news/articles/2017-08-22/gold-surging-to-1-400-for-bofa-as-long-term-rates-to-stay-low-j6n04zay

      Aug 23, 2017 23:34 AM

      But McGlone isn’t too worried. The U.S dollar may just be the knight in shining armor silver has been waiting for.

      “If the U.S. dollar, which is hovering at a two-year low, stays down, it would signal a longer-term peak supporting the opposite in commodities,” he said. “If the dollar has peaked, silver should be a primary beneficiary, if history is a guide.”

      From a technical standpoint, silver seems to be in a sweet spot right now, McGlone explained.

      “If the dollar doesn’t recover or continues lower, silver’s 2016 high of $21.14 should be in play. The 2017 low close from July, $15.62, is critical support,” he said.

      “Silver, the metal/quasi-currency with among the highest negative betas to the U.S. dollar, appears to be marking time before playing catch-up to most other metals and the declining greenback.”

      http://www.kitco.com/news/2017-08-22/Will-The-Devil-s-Metal-Curse-Be-Broken-This-Analyst-Bets-On-Silver.html

        Aug 23, 2017 23:39 AM

        $1300 Continues as a Tough Resistance Level [Gold]

        Gary Wagner – Tuesday August 22, 2017

        “After trading to above $1300 (an intraday high of $1306), resulting in gold prices reaching a three-month high, a strong U.S. dollar today has caused the precious yellow metal to trade lower on the day. It seems $1300 an ounce is a tough price point for gold to trade and close above.”

        “I am still of the belief that it is a matter of when, not if, when it comes to the question of whether gold prices will effectively breach the $1300 ceiling and close above it. Obviously, though, that will not occur in today’s trading session.”

        “Recent activity bidding gold prices higher have been based on a couple of factors. A more dovish tone from the Federal Reserve and the European Central Bank have continued to put higher interest rates on a back burner. Both central banks continue to have an accommodative monetary policy that requires extremely low interest rates.”

        “With both Janet Yellen and Mario Draghi expected to make statements at the Jackson Hole conference later this week, we could see more fireworks in store for gold prices.”

        “Another factor which has been extremely supportive of safe haven assets, such as gold, is North Korea. Although recent posturing by North Korea seem to subside, as last week saw a de-escalation in threats made both in North Korea as well as by the United States….”

        http://www.kitco.com/commentaries/2017-08-22/-1300-Continues-as-a-Tough-Resistance-Level.html

    Aug 23, 2017 23:09 AM

    Charts of the Day: Warning Signs For Copper
    The Hedgeless Horseman – August 23, 2017

    Money Managers (semi dumb money) net long positions at 2 year highs (at least):

    [Chart of Chinese Credit Creation vs Copper]

    “… These are huge warning signs for investors that are long copper.

    Zerohedge recently posted an article titled “Something Strange Is Going On: Axiom Stumbles On The Reason Behind Explosive Industrial Metals Surge”, which I encourage anyone interested in base metals to read.”

    http://www.thehedgelesshorseman.com/chart-of-the-day/charts-day-warning-signs-copper/

    Aug 23, 2017 23:31 AM

    @chatyak – “Hhorseman what makes $DV (Dolly Varden) your go to silver play?”

    @HHorseman – “Chatyak
    1. Location (Not many pure silver deposits in the world, let alone in NA)
    2. Grade
    3. CEO with buy out experience
    4. Price/Resource
    5. Prospectivity
    6. Hecla already wanted to buy them before these new juicy hits
    7. Mineralization starts near surface

    “I owned Bear Creek and might take a position again thou. It’s just that $DV trumps them on many factors and a major has already shown interest.”

    “Impact (IPT) is a fairly large postion for me though (one of the few producers I own). I mainly consider Impact as a highly levered beta play.”

    https://ceo.ca/dv

    Aug 23, 2017 23:42 AM

    Fun With Charts: Years That End With A 7 Edition

    by @Goldfinger on August 23, 2017

    https://ceo.ca/@goldfinger/fun-with-charts-years-that-end-with-a-7-edition

    b
    Aug 23, 2017 23:42 AM

    I find it interesting we are being told of “biggest finds in history” in a couple places, novo(biggest in history) and klondex(the mother load), throw in pebble beach.

    We already have massive discoverys and mines producing huge amounts, most in Russia, interesting they are not promoted.

    I just find it interesting, almost like some people are trying to create interest in N.A. markets. Maybe not interesting, maybe just how things works.