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There are a couple consistence in the market – Volatility and Yields Crashing

Cory
March 5, 2020

Chris Temple joins me to share his thoughts on the crazy volatility in the a wide range of markets. Driven almost exclusively by fear we are seeing +2% moves in even the safest of assets. We outline that the only think that has been consistent is volatility and crashing yields.

Click here to visit Chris’s site and learn more about his newsletter.

Discussion
27 Comments
    Mar 05, 2020 05:42 AM

    Troubling situation mentioned by Chris Martenson in yesterday’s update on the Cov19 issue……….India, who manufactures a lot of pharmaceuticals has banned the export of a big percentage and that % is likely to grow. This can’t help the fear situation and in fact injects another whole subject into the ‘worry’ cauldron; a shortage of medicines!

    cmc
    Mar 05, 2020 05:51 AM

    Head’s up. Interview title says Eric, but interview is with Chris.

      Mar 05, 2020 05:28 AM

      Sorry about that guys. The title is now fixed. Was trying to do too much at one time.

        cmc
        Mar 05, 2020 05:20 PM

        No worries. Next time I’ll spell Erik correctly.

    Mar 05, 2020 05:19 AM

    When GDX will break out from its 7 year resistance? If we have to please Mayan God with human sacrifice then so be it. Here ere are my choice of candidates.
    Biden, Schumer, Ilhan
    I am also willing to donate 10 percent my profit.

    Mar 05, 2020 05:29 AM

    The markets in the last few weeks have certainly made traders change strategy. It looks like use the short term charts (15 minute for me ) and buy in the morning sell every afternoon. No telling what tomorrow will bring. Gaps up and down galore.

    Mar 05, 2020 05:21 PM

    Boys i know you think i Crazy ! The Internet Money System is in a Changing transaction ! Diss Corona 19 is the catalest of a new world in a internet Prison of no reality of live !

    Mar 05, 2020 05:49 PM

    Hey boys!

    Any explanation for the miners lagging at these gold prices? Either they catch up fairly quickly or we are retesting some bottoms….

    I’d like everyone’s perspective. Contrarians and bears and bulls all welcomed..

    My thoughts are we are still headed to 2000 plus but I’m another year or two.

      Mar 05, 2020 05:09 PM

      This phenomenon has puzzled many and I’m scratching my head to come up with a logical explanation. Are miners anticipating a bigger “washout” of stock market and unwilling to participate with rising gold price? Is huge short positions in Gold making people nervous in coming to this sector?

      Mar 05, 2020 05:13 PM

      At some point, higher gold price would reflect in earnings. I would “think” sooner rather than later.

        Mar 05, 2020 05:24 PM

        We sure hope so!

      Mar 05, 2020 05:16 PM

      Glenfidish…………there is no overhead resistance after $1900 (gold)……the number can be anything……..
      There is a HUGE AMOUNT OF DEBT AND FIAT…..let along the $200 Trillion in derivatives.

        Mar 05, 2020 05:18 PM

        along….to alone…….
        Watch the REPO amount…….the banks do not trust each other……house of cards…..at this point…..

        Mar 05, 2020 05:32 PM

        I much rather have lower gold prices and stealth higher prices in miners ala 2008/2009.
        But having both is a bonus

      Mar 05, 2020 05:18 PM

      GLD is up 7% off its low while GDX is up 17%. I’d guess that today’s lack of leverage has to do with anticipation of a pullback after moving up every day this week so far and running into resistance:
      https://stockcharts.com/h-sc/ui?s=GDX&p=D&yr=1&mn=1&dy=0&id=p52421086575&a=724732716

      Mar 05, 2020 05:24 PM

      I’d attribute the general lack of leverage to fear. The silver-gold ratio is at a 29 year low and stocks keep falling. That’s enough to explain it but last week’s action in the miners added significantly to the fear.
      https://stockcharts.com/h-sc/ui?s=SPY%3AGLD&p=W&yr=5&mn=0&dy=0&id=p32327854392&a=724061228
      I am not worried but those holding conventional stocks still have reason to be.

        Mar 05, 2020 05:06 PM

        Agreed!

      Mar 05, 2020 05:29 PM

      I believe the breakout that sticks is coming much sooner than most expect. Possibly even before the Fed meeting this month.
      https://stockcharts.com/h-sc/ui?s=GDX&p=W&yr=6&mn=5&dy=0&id=p06743420956&a=725445735

      Glad I bought IPT and BBB near the lows last Friday! No rush after such a gift? I disagree.

        Mar 05, 2020 05:35 PM

        Good purchase Matt!! I’m also looking for that sticky sticky breakout the kind that gives us a day in between rest lol..

        Cheers buddy thx for those charts as always

      Mar 05, 2020 05:16 PM

      Glenfidish. The physical gold market is a toy for large players. The miners–meaning junior miners–are for we insignificant proles. We don’t move markets.

      Mar 05, 2020 05:35 PM

      Read this and you’ll understand miners’ and explorers’ “underperformance” — https://nationalinvestor.com/2228/the-gold-issue-this-is-not-your-fathers-gold-market/

      Mar 05, 2020 05:20 PM

      Sort of tying in with what Matthew said, I think fear is ruling supreme at the moment. That fear is driving golds price as a safe haven but most other assets associated with PMs are somewhat stuck in a rut. Simply, they are still feeling beaten and bruised from last weeks washout. Not to mention the muted moves prior to that time.

      Fundamentally, I think the PMs sector as a whole needs a more direct positive environment to move in unison over the mid to long term. Outside influences that induce panic and high volatility like we are currently witnessing isnt a stable enough environment in the short term. That said, like Matthew states, both GLD abd GDX have had nice bounces. Whether they maintain it or not is another qudstion.

      I personally think that silvers price action is a fair barometer of the broader PMs sector. Once silver gets going (who knows when that will be), we may well find many other miners get dragged along as underlying strength improves. But with the GSR currently in the mid 90s, theres abit of work to be done to validate that theory.

    b
    Mar 05, 2020 05:36 PM

    https://youtu.be/GiI6VqZt4sI

    A little free speech, I guess u tube is shutting sgt report down.

    Mar 06, 2020 06:39 AM

    Chris…….thanks for the newsletter………Most of the article is spot on.
    I will not go into what I think is not correct, for that would take away from what I consider some great info…..again…….thanks for the article……..appreciate……..OOTB

    Mar 06, 2020 06:48 AM

    You bet.