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Comments on the USD and Equinox Gold stock chart

Cory
December 19, 2019

Doc joins me today to comment on a couple facets in the gold market. We start with a quick comment on ifs 2019 is similar to 2016 for gold. Next is a close look at the US dollar chart and levels to watch for a full on breakdown. Also what a lower dollar could bring in terms of other data in 2020. Finally we take a look at the chart for Equinox Gold (TSX:EQX & AMEX:EQX).

Discussion
40 Comments
    Dec 19, 2019 19:02 PM

    Doc, your thoughts on stock mkt, it is trading way above 200mda and we need to see a nice profit taking event in Jan/Feb.
    This could cause nice pop in gold.

      Dec 19, 2019 19:33 PM

      Paul, good thoughts. January will be a key for the conventional market. However, months ago I mentioned that the long term technicals were showing the conventional markets were not in danger and should head higher. These markets are getting tired but the long term technicals still show the odds are for it to move higher yet in 2020. However, it appears that the conventionals will top sometime in 2020 and possibly the second half of the year.

    cfs
    Dec 19, 2019 19:19 PM

    I agree with Dr. Postma that the U.S. Dollar has topped out.
    I believe the Federal Reserve will have a dilemma in the second quarter of 2020.
    The Fed will have to choose between raising rates to curb inflation and strengthen the dollar, OR lower rates to boost the economy and the stock market.
    Historically, the Fed would want to raise interest rates, because it would also help the banking industry. I believe that further pressure will cause the Fed to actually lower rates 2 or 3 times during 2020, and that by the end of that year inflation will be clearly observable even on the B.L.S. measures of inflation.

    However, I believe that President Trump will warn the Fed that if it raises interest rates, he will find a way to abolish the Fed. It is my belief that this will stop the the Fed from raising rates.

      Dec 19, 2019 19:24 PM

      It’s funny enough to think that Trump would abolish the Fed but to think that he could ridiculously naive.
      The Fed will inflate via interest rate suppression because it has no choice other than to let the system collapse. It’s that simple. The banking/monetary system is unsound and fraudulent but you won’t hear that from Trump.

        cfs
        Dec 19, 2019 19:45 PM

        What precipitated the assassination of JFK ?

          Dec 19, 2019 19:38 PM

          I believe it was probably that he was trying to exercise powers that he didn’t know he didn’t have. JFK was a socialist so he had no aversion to central banking as a matter of principle.
          He was taken out in such a public way to send a clear message to all future presidents. The Oswald story was for the masses but the insiders at the top of the political food chain always knew what happened. Thirty years earlier, poison was chosen for Louis T. McFadden (and it took three attempts) but that doesn’t traumatize would-be competition the way an exploding head does.

            cfs
            Dec 19, 2019 19:22 PM

            An often overlooked aspect of John F. Kennedy’s attempt to reform American society involves money. Kennedy apparently reasoned that by returning to the Constitution, which states that only Congress shall coin and regulate money, the soaring national debt could be reduced by not paying interest to the bankers of the Federal Reserve System, who print paper money then loan it to the government at interest. He moved in this area on June 4, 1963, by signing Executive Order 11110 which called for the issuance of $4,292,893,815 in United States Notes through the U.S. Treasury rather than the traditional Federal Reserve System. That same day, Kennedy signed a bill changing the backing of one and two dollar bills from silver to gold, adding strength to the weakened U.S. currency.

            cfs
            Dec 19, 2019 19:26 PM

            JFK was assassinated Sept. 1963.
            Not a coincidence.

            Dec 19, 2019 19:45 PM

            I’m well aware of that order but agree with G. Edward Griffin…
            https://www.youtube.com/watch?v=tFstll4VomA

            JFK was assassinated in November.

            Dec 19, 2019 19:53 PM

            I have not watched the following video but it appears to be the source of the short clip I provided above…
            https://www.youtube.com/watch?v=1Q5TNrVogz8

            Dec 19, 2019 19:54 PM

            Now I’ve watched that video and Griffin did not disappoint.

            cfs
            Dec 19, 2019 19:09 PM

            Matthew, you are perfectly correct that JFK was killed November, 1963. I was teaching P at Oxford University at that time (physics tutor) and recalled a discussion I had with a student who told me about JFK’s death. I recalled the weather, warm enough to be walking outside without a jacket, but not the date, which was November 22. I knew it was in Michaelmas term, and mistakenly assumed early in the term – I was wrong.
            G. Edward Griffin, obviously had not heard of Executive order 11110,
            http://www.ecclesia.org/forum/uploads/bondservant/jfkP.pdf
            I remember being worried at the time because I was not planning to return to the US to visit until the summer of 1964, and I had much of my money in dollar bills at my then home in Oxford. I was worried that we would be given only a limited time to change them to the new currency. (I was expecting the change Jan 1, 1964)
            Although G. Edward Griffin is about my age, since he only wrote Creature from Jekyll Island in the mid-nineties, I suspect he did not have as much interest in the Fed back in 1963 as I did, and simply had no reason to look for an Executive Order.

            cfs
            Dec 19, 2019 19:54 PM

            I thought I remembered the notes starting to be changed….I was right.
            The new notes were “silver certificates”

            .O. 11110 was never reversed by President Lyndon B. Johnson and the section added to E.O. 10289 remained on the books until President Ronald Reagan issued Executive Order 12608 on September 9, 1987 as part of a general clean-up of executive orders. E.O. 12608 specifically revoked the section added by E.O. 11110 which effectively revoked the entire Order. By this time, however, the remaining legislative authority behind E.O. 11110 had been repealed by Congress when Pub.L. 97-258 was passed in 1982.
            In March 1964, Secretary of the Treasury C. Douglas Dillon halted redemption of silver certificates for silver dollars. In the 1970s, large numbers of the remaining silver dollars in the mint vaults were sold to the collecting public for collector value. All redemption in silver ceased on June 24, 1968.

            (I remember at the time expecting to need to change my stash of dollars. Maybe I was in error with that expectation.) There was talk at the time of the Federal Reserve losing its powers, even if President Kennedy did not give a speech about it.
            I did not particularly like JFK, as I have always been on the extreme right wing of politics. I did not get the impression he was that socialist though, but then I was in England during his Presidency.
            But then I did not like Ike either….I never understood why he stopped short of Berlin.

            Dec 19, 2019 19:57 PM

            I can’t say when Griffin looked into the EO but it doesn’t matter. His conclusions about it, and Kennedy, are accurate. He’s not the only one who’s looked into it.
            He’s been on the ball for a long time and was 63 when Creature was published.

            ‘The Fearful Master: A Second Look at the United Nations’ was published in 1964.

            Dec 20, 2019 20:02 AM

            Bill Still is probably still spreading that myth along with his many other falsehoods.

          Dec 19, 2019 19:48 PM

          JFK studied under Harold Joseph Laski, a professor of political science at the LSE was influential in British politics as an advocate of far left policies….
          https://www.newworldencyclopedia.org/entry/Fabian_Society

            cfs
            Dec 19, 2019 19:36 PM

            I agree that the LSE is Marxist in its extremism. While Kennedy was liberal, he was NOT socialist left.
            His politics were to the right of most current Republicans.
            Sorry, but it was JFK’s intention to eliminate the Fed.
            I remember the discussion at the time and supported his policy.

            (it is often what you don’t know you don’t know that is the problem.)

            Dec 19, 2019 19:49 PM

            You are correct, it is often what you don’t know you don’t know that is the problem.
            Kennedy was absolutely a socialist.

            He was a modern liberal which means he was hardly liberal in the original or classical sense.

            Dec 19, 2019 19:58 PM

            “The principles of classical liberalism are being assaulted daily, not only in our universities, public schools, news media, television programming, movies, books and novels, but also by a whole generation of professionals in private society who were convinced of the desirability of egalitarian collectivism during the 60s and even more so today. Most shockingly, this also includes our churches. The foundation upon which Western civilization was built was religion, and hence it has been one of the main targets of the modern liberal-leftist.”
            Managed truth: The great danger to our republic
            https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3263007/

            Dec 19, 2019 19:03 PM

            “The man that Kennedy wanted to study under was known as Britain’s most influential spokesman for socialism.”
            https://www.thenewamerican.com/culture/history/item/26121-kennedy-was-no-conservative

            cfs
            Dec 20, 2019 20:11 AM

            IMatthew, I know I’m getting forgetful at times. Every year the memory seems to get worse, so forgive me if I make the errors of senility.
            It’s funny how some memories seem totally precise from eons ago, while some from recently are fuzzy. I know it is harder to memorize poetry and stuff that seemed trivial to remember when I was young.
            The only trick I have learned over the years is to try to fit everything into a big picture context, so that there are many cross-correlations to support memories.

            cfs
            Dec 20, 2019 20:28 AM

            “For example, when we say the United States has the best medical care system in the world, the leftists retort, “but everyone knows we have the highest infant mortality rate of any industrialized nation.” To refute this “fact” makes one an obvious idiot and a fool. This social pressure keeps most from challenging “accepted truths.” The liberals take full advantage of this social pressure in all spheres of life to keep the silent majority silent.”

            Is a quote from your cite, Matthew.

            As you know, I do not tend to be silent. I could hardly be called “always politically correct”.
            I see nothing wrong with stating the U.S. has the best healthcare system, even though it has a high infant mortality.

            It simply means that my gauge for measuring quality differs from one that places a higher value on infant survival.
            Is there a universally accepted gauge for measuring healthcare quality ?

        Dec 19, 2019 19:46 PM

        It’s also ridiculous to think that The Fed could raise rates period. The debt will crash the system much sooner if they raise rates even .5 to 1%. The days of trying to stop inflation by raising rates as Volcker did is long gone. It makes you wonder how anyone could even suggest trying to stop inflation by raising rates, that is a real knee slapper! DT

          cfs
          Dec 19, 2019 19:06 PM

          Which choice, historically, crashes systems….Raising interest rates, or
          printing money. ?

          Note the use of the word “systems” not “banks”

          Dec 19, 2019 19:24 PM

          That’s right, DT. So the idea that Trump needs to “force” the Fed to cut is preposterous.

          The right rate is the one set by the market. The masses have allowed the communist Fed to intervene for so long that nearly everyone thinks it is necessary and even legit. Many even fall for the absurd propaganda that honest money is antiquated and would hold us back “in this day and age.” Buffoons.

          Charles A. Lindbergh Sr. over 100 years ago:

          “This [Federal Reserve Act] establishes the most gigantic trust on earth. When the President (Woodrow Wilson) signs this bill, the invisible government of the monetary power will be legalized….the worst legislative crime of the ages is perpetrated by this banking and currency bill.”

          (I wonder who was behind the kidnapping and murder of Lindbergh’s grandson.)

          cfs
          Dec 20, 2019 20:18 AM
    Dec 19, 2019 19:33 PM

    I´ve been listening to Doc for a long time, but I must say that his track record isn´t that great. For some strange reason he always says “It could be so but we have to wait and see…”. What kind of advice is that? You Always want to be ahead of the curve, thats why you come to sites like this one, to learn and to take advantage of wisdom that is spread around here.

    Excuse me Doc, but Corey is interviewing you for a specific opinon and for directions and we are listening to you beacasue we want to hear something concrete, not “We´ll have to wait and see”, thats what you say in nearly all of your analysis. In that way you´re also right wich ever way the market goes…

    “However, it appears that the conventionals will top sometime in 2020 and possibly the second half of the year.” So you give us a time-frame of cirka 12 months…? Well, thats not precise, is it? If I would say that the market would find a top within 12 months no one would take me seriously..

    Matthew have shown us a lots of times when you´ve been dead wrong.
    So I respectfully ask you to be more precise when you give us your predictions. Maybe you don´t want to be precise because of your subscribers, but please tell us so we understand were you stand.

      Dec 19, 2019 19:03 PM

      Miklo, first of all, I do this for the love of it and have no subscribers. When I equivocate it’s because the technicals are not showing a clear sign and I’m not going to make a concrete statement then. I’m an investor and not a short term trader and I leave that to people like Rick Ackerman. I look at long term trends and especially for bottoms so I and others can take positions at low risk. I’ve also been warning people for years that this precious metals market would bottom for a long time and to buy on dips instead of chasing stocks that put you in losing positions. I went bullish on the gold/silver market as far as a breakout a week before it broke out this past summer. I take a strong position rarely when the technicals really align. I also warned folks in September that we wouldn’t see the highs of August again for weeks to months. I will repeat—I supply my ideas on long term trends and don’t look much at short term charts and invest accordingly. I’ve watched a lot of “concrete” wisdom on this site and others over the past few years that have been consistently wrong. I’ll give you one example and the example is not to be pejorative to Bob M. who I respect. He made a comment late summer along with others to expect a collapse in the conventional markets in October of this year. I warned people that the technicals weren’t signalling that at that time at all. Then folks can make their own decisions based on that. Okay, I’m done for the night. By the way I put my money where my mouth is and have done extremely well in this market and I don’t have small sums invested either. I do appreciate the information on this site about the fundamentals of various stocks by different contributors and I then am able to see if their comments square with my technicals.

        Dec 19, 2019 19:22 PM

        Thank you for the reply and I apologize for that “subscriber” thing.
        But you have to understand its kind of disappointing to hear you say “we have to wait and see” so often. We all respect you and your knowledge, but its kind of tiresome to hear you “equivocate”.
        Reply to this comment

        cfs
        Dec 19, 2019 19:41 PM
        Dec 19, 2019 19:59 PM

        I for one appreciate everyone’s views on this site including Doc’s views. I for one would have been better off if I would have heeded Docs Advice and not chased the precious metals stocks down during the bear market. As he states he is not a trader so by design is not necessarily going to get the short term pops and drops. But if you are new to investing and especially this sector which can put a hurt on your portfolio faster than you can say go, I would encourage you to heed Docs advice. He has been around a long time and knows what he is talking about. That’s my two cents FWIW.

          Dec 20, 2019 20:33 AM

          You seem to misunderstand what I wrote. I´ve followed Doc a long time and I highly respect him and his knowledge. He is a wise man.

          I am not new to this market, I am not even new to this website, I´m only new to comment. But thank you for four encouraging words.

          I sold half of my holdings in the beginning of august. I didn´t get the last percents up but my patience was rewarded as I reentered at a later stage at cheaper prices.

          Have a nice day!

    Dec 19, 2019 19:21 PM

    Thank you for the reply and I apologize for that “subscriber” thing.
    But you have to understand its kind of disappointing to hear you say “we have to wait and see” so often. We all respect you and your knowledge, but its kind of tiresome to hear you “equivocate”.

      Dec 19, 2019 19:37 PM

      Thanks for that comment. It’s interesting you say that since it’s one of the reasons I no longer contribute daily like I did years ago. I’ve told Cory i don’t want to sound like a broken record so I come on infrequently now. I’m starting to look at coming on and talking about individual charts that I feel are significant from a technical aspect with potential low risk/high reward—E.Q.—equinox. Another one a few weeks ago was Hecla which I mentioned looked like it was ready to break out. It has and is now better then a double. There are a number more of these charts now that are looking very promising on a breakout standpoint.

    cfs
    Dec 19, 2019 19:24 PM

    Skeena drills 1.5 m of 1,131.91 g/t Au at Snip

    2019-12-18 09:42 ET – News Release
    Mr. Walt Coles Jr. reports
    SKEENA INTERSECTS 1,131.91 G/T (36.39 OZ/T) GOLD OVER 1.50 M IN NEW FOOTWALL MINERALIZATION AT SNIP

    Skeena Resources Ltd. has released initial analytical results from the recently completed phase I surface exploration drilling program at the 100-per-cent-owned Snip gold project located in the Golden Triangle of British Columbia. The 2019 surface program consisted of 10 surface drill holes totalling 1,934 metres, which expanded exploration of the 200 foot-wall corridor.

    Phase I snip drilling highlights:

    1,131.91 g/t gold over 1.50 m from 249.60 m depth (S19-044);
    Including: 3,390.00 g/t Au over 0.5 m;
    7.37 g/t Au over 6.65 m from 41 m depth (S19-040);
    Including: 23.4 g/t Au over one m;
    And: 35.70 g/t Au over 0.5 m.
    Actual core lengths are reported due to a lack of supporting data to properly calculate true widths. Length-weighted composites were constrained by geological and grade considerations. Grade capping of individual assays has not been applied to the Au assays informing the length-weighted composites. Samples below detection limit were nulled to a value of zero.

    Dec 19, 2019 19:18 PM

    REALIST NEWS – Sharon Michelle Report – Cryptos and More – Free

    https://www.youtube.com/watch?v=rWvF0sva_R0

    Dec 19, 2019 19:58 PM

    https://www.zerohedge.com/political/durham-reportedly-seeking-ex-cia-director-brennans-emails-call-logs-over-russian-probe —-very significant article. Durham is into the significant stuff and searching for the truth—-he’s putting the missing elements of the spying together and it will eventually tell the whole story.

    Dec 20, 2019 20:37 AM

    Brennan voted for the communist Gus Hall in the ’76 presidential election.
    Only a traitor like Obama would have put the traitor Brennan in charge of the CIA.
    I hope Durham’s report nails all the traitors behind the Russian collusion hoax.