Dana Lyons Commentary – Thu 9 Jul, 2020

Complacency in the markets… Does it matter when a just a few sectors are moving higher?

Dana Lyons joins me today to share his thoughts on the overall markets by pointing to the weak breadth and possible complacency. With the same sectors leading that have been leading for the past few months Dana says to keep riding the momentum. We also discuss the overall health of the emerging markets, especially the Chinese markets.

Also click here for his subscriber site where you get more specific trading advice.

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Comments:
  1. On July 9, 2020 at 1:59 pm,
    Excelsior says:

    Here’s a sign of the times with all the new Robinhooders….

    Robinhood reportedly installed bulletproof glass after frustrated traders kept showing up at its office

    Graham Rapier 4 hours ago

    > Frustrated traders occasionally show up at Robinhood’s California headquarters, the New York Times reported.
    > According to the paper, things got so bad that Robinhood eventually installed bulletproof glass near the entrance.
    > The app pioneered free stock trading, but its game-like interface and availability of highly risky products have put it under intense scrutiny.

    https://www.businessinsider.com/robinhood-office-installed-bulletproof-glass-after-frustrated-traders-visited-report-2020-7

    • On July 9, 2020 at 2:02 pm,
      Excelsior says:

      (reposting this from yesterday since it is related)

      Robinhood Has Lured Young Traders, Sometimes With Devastating Results

      By Nathaniel Popper – July 8, 2020

      https://www.nytimes.com/2020/07/08/technology/robinhood-risky-trading.html

      • On July 9, 2020 at 2:04 pm,
        Excelsior says:

        ‘It’s like trying to beat the casino’ — Rookie trader turns $15,000 into $1 million, then loses almost everything

        July 9, 2020 by Shawn Langlois

        “That’s Richard Dobatse, talking with the New York Times about his painful experience trading stocks — and ultimately losing a fortune — on the Robinhood app.”

        “Dobatse explained in the interview that he’d been drawn into the app’s bells and whistles, which made flipping stocks and dabbling in more complex investments feel like a game.”

        https://www.marketwatch.com/story/he-traded-15000-into-1-million-from-there-he-lost-almost-everything-2020-07-09

        • On July 9, 2020 at 2:07 pm,
          Excelsior says:

          Robinhood is making far more money from the options boom than from stocks

          by John Detrixhe

          “Brokerages like Robinhood and TD Ameritrade are riding high from the boom in trading. For these brokers, the big money isn’t in the stock market—it’s in options.”

          “There are signs that everyday traders are going bonkers for equity options, which offer a cheap way for traders to bet on a stock going up or down in price without having to actually purchase the shares.”

          “Investors, from armchair traders to hedge funds, traded about 3.2 billion of these options during the first half of the year, according to Options Clearing Corp. If that pace is continued for the rest of 2020, equity options trading will far exceed the total for any other year.”

          https://qz.com/1878145/why-robinhood-makes-more-money-from-options-than-stocks/

          • On July 9, 2020 at 2:09 pm,
            Excelsior says:

            This is likely going to end badly for a great many of the new Robinhood traders, as Mr. Market can be a cruel teacher.

            It is tragic comedy that once again, these people make poor decisions, but then come into the lobby of the Robinhood offices blaming them instead of having personal accountability.

            Shaking my head…

          • On July 9, 2020 at 2:25 pm,
            SilverDollar says:

            “Experience: that most brutal of teachers. But you learn, my God do you learn.”

            ― C.S. Lewis

          • On July 9, 2020 at 4:40 pm,
            OOTB Jerry says:

            Good one on the C.S. Lewis…….comment……

          • On July 9, 2020 at 8:29 pm,
            buzz says:

            Yeah, guess that safe-space generation is going to have to learn about smoke and mirrors

          • On July 10, 2020 at 12:10 am,
            Excelsior says:

            Great quote SilverDollar. Well said Buzz.

            The Robinhood losers get even more millennial with the whining and blaming others for their own actions. This ding dong is suing his own parents. (WFT?)

            _____________________________________

            Man Who Lost $850,000 On Robinhood Is Suing His Parents For Making Him This Way
            July 9, 2020

            Local man Terry Doherty, who used loans and leveraged assets to build an $850,000 portfolio on Robinhood before losing it all, is now suing his parents over the poor genetics he inherited. The 31-year-old’s case has gained widespread attention from the millions of day traders who are suffering from the same affliction. “Our client believes, with good reason, that he would not have dabbled in easily accessible but complex financial instruments or taken tens of thousands of dollars in cash advances from a high-interest credit card to gamble on the stock market if it were not for some failure in his DNA,” Doherty’s lawyer stated.

            https://readthehedge.com/2020/07/09/man-who-lost-850000-on-robinhood-is-suing-his-parents-for-making-him-this-way/

  2. On July 9, 2020 at 4:41 pm,
    OOTB Jerry says:
    • On July 9, 2020 at 4:43 pm,
      OOTB Jerry says:

      Alternative investments……..lol………….got gold……….chinese will be looking for some metals I bet…… 🙂

  3. On July 9, 2020 at 5:50 pm,
    Excelsior says:

    U.S. town prints its own wooden money in move to revive local economy sickened by COVID-19

    Thomson Reuters · Posted: Jul 09, 2020

    https://www.cbc.ca/news/business/tenino-covid-economy-1.5643409

  4. On July 9, 2020 at 5:53 pm,
    OOTB Jerry says:
  5. On July 9, 2020 at 7:47 pm,
    Ebolan says:
  6. On July 9, 2020 at 8:51 pm,
    buzz says:

    Hey, does anybody know whether the Fed is buying the dips in gold & silver? They’d be stupid not to. That’d be one way to trump the Democrats at their stupid game—

    • On July 9, 2020 at 9:02 pm,
      cfs says:

      AS far as I can tell the Federal Reserve does not buy the dips, but only buys in large quantities by direct arrangements with banks or ETFs…..such that the act of buying the dip on the COMEX or any other exchange makes no wense, since such an action would dramatically move price..

      • On July 10, 2020 at 5:51 am,
        buzz says:

        Thx, point being, the Fed should hedge it’s portfolio with gold & silver

        • On July 10, 2020 at 6:38 am,
          cfs says:

          There aren’t gold and silver ounces in the world above ground to make a difference.

          • On July 10, 2020 at 6:47 am,
            cfs says:

            SURPRISING: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL ?? OF 1.118 MILLION OZ
            SLV INVENTORY last NIGHT:
            SLV: 502.753 MILLION OZ.
            Some banks are taking available real silver!

  7. On July 9, 2020 at 8:56 pm,
    cfs says:

    off topic. Re: Covid-19 Vaccinations. e.g. Florida.

    General Provisions for Public Health in Florida State Statute states in Chapter 381, in Section 318.00315 :
    ” 4. Ordering an individual to be examined, tested, vaccinated, treated, isolated, or quarantined for communicable diseases that have significant morbidity or mortality and present a severe danger to public health. Individuals who are unable or unwilling to be examined, tested, vaccinated, or treated for reasons of health, religion, or conscience may be subjected to isolation or quarantine.

    a. Examination, testing, vaccination, or treatment may be performed by any qualified person authorized by the State Health Officer.
    b. If the individual poses a danger to the public health, the State Health Officer may subject the individual to isolation or quarantine. If there is no practical method to isolate or quarantine the individual, the State Health Officer may use any means necessary to vaccinate or treat the individual.”

    I personally don’t think a vaccine which will last more than a few months is possible, but I find the wording of the Florida statute most alarming.

  8. On July 10, 2020 at 12:03 am,
    Excelsior says:

    Silver Investment Demand Up By 10 Percent In First Half of 2020

    July 09, 2020 – The Silver Institute

    “Silver’s role as a valued investment was broadly on display during the first half of 2020, as investors actively accumulated silver in the first six months of the year, leading to a 10 percent gain in investment demand. Paving the way was remarkably strong growth in silver-backed exchange-traded products (ETPs), which have posted successive all-time highs this year, together with solid silver coin and bar investment.”

    “Retail and institutional inflows into silver ETPs have been impressive this year. As of June 30, global holdings reached a fresh all-time high of 925 million ounces (Moz), which is roughly 14 months of mine supply. The ETP growth in the first half 2020 of 196 Moz comfortably surpassed the highest annual inflow of 149 Moz set in 2009. North American listed funds accounted for some 90% of the ETP inflows since March.”

    https://www.silverinstitute.org/silver-investment-demand-10-percent-first-half-2020/

  9. On July 10, 2020 at 7:58 am,
    Excelsior says:

    Sprott Money News Weekly Wrap-up w/ Eric Sprott

    7.10.20 #AudioInterview

    “Legendary investor Eric Sprott discusses the precious metals markets and answers listener questions regarding a few specific mining company shares.”

    https://youtu.be/8BaQaYZBp14

    • On July 10, 2020 at 8:13 am,
      Excelsior says:

      Topics covered: $Gold $Silver $KL $GCM $BMK $FVL $WM $TUD $VZLA $STGO $JAG

  10. On July 10, 2020 at 8:06 am,
    bonzo says:

    Why buy options which expire at Robinhood when you can buy a share of stock, which never expires, in NULGF for less than a dime? I bought more this morning@.087.
    Oddly enough I bought 3.7 times the number of shares that has traded in Vancouver so far today.
    Now if Quinton is right about this being another Post-Betze which is 50 million oz then NEM or Barrick might pay $200/oz or 10 billion, or over $20 a share. But as Quinton said, “Would it be bad if it’s only a tenth that size? No.” That would still be a 20 bagger!
    I wonder if there are options or warrants for sale on NULFG?

  11. On July 10, 2020 at 8:16 am,
    cfs says:

    yet again….
    Avino Silver temporarily halts mining at Avino
    2020-07-10 08:00 ET – News Release
    Mr. David Wolfin reports
    AVINO PROVIDES MINE UPDATE
    Members from the Mexican mining union have blocked the entrance to Avino Silver & Gold Mines Ltd.’s Avino mine near Durango, Mexico.

    • On July 10, 2020 at 9:12 am,
      Excelsior says:

      Yeah, I sold another chunk of my ASM Avino position today, as I’m getting sick of this. Mr Wolfin seems like a positive and sincere guy, and I’ve supported their company for years, but he prides himself and the company on using mostly Mexican staff and their great community relations, but they keep having delays and union issues, and ASM has lagged many of the other Silver stocks for a long time.

      There are too many other choices in the Silver sector of companies that are getting it done and having much better share price performance. I left a small tracking position in place with ASM because I am still rooting for their success, and if they can get things ironed out and put together a few quarters of outperformance, then I’d consider adding once again.

      Moving on…

  12. On July 10, 2020 at 8:22 am,
    cfs says:

    Avidian Gold investor Sprott acquires 20 million units

    Always annoys me when companies also give away a full warrant. It represents laziness to get more funding later, AND a good chance of short selling later closer to warrant expiration, but companies don’t seem to realize that.

  13. On July 10, 2020 at 8:40 am,
    Excelsior says:

    This is hilarious, and exactly the lagging awareness we expected from the main stream financial bobble-heads.

    *Get this: After Gold has been in a bull market for 4 years off the 2015 major low at $1045.40, and has added $800…. NOW it may be ready for a Bull market (haha!)
    #LateToTheParty

    ___________________________________________

    The Gold Rally May Have Just Begun: 5 Top Picks to Tap It
    Nalak Das July 10, 2020

    https://www.zacks.com/stock/news/1001536/the-gold-rally-may-have-just-begun-5-top-picks-to-tap-it

    • On July 10, 2020 at 8:41 am,
      Excelsior says:

      > 5 year $Gold #Chart (yep, this Gold pet rock may be ready for a bull market…) 🙂

      http://schrts.co/guaMXHtQ