As the S&P hits all-time highs – Are investors being too complacent?

August 26, 2020

Chris Vermeulen kicks off today with comments on the US markets recent break to all time highs. We look at volume, breadth, and money flows to determine where the markets could go from here.

Click here to visit The Technical Traders website and follow along with Chris’s trades.

    Aug 26, 2020 26:41 AM

    U.S. Bond Fund Giant Says Gold Still Has Plenty Of Luster

    Aug. 25, 2020 – Sunny Oh – MarketWatch

    “Gold still looks cheap after accounting for inflation-adjusted yields, says Pimco fund manager.”

      Aug 26, 2020 26:08 AM

      Market Function Purchases by the Federal Reserve

      August 20, 2020 – Kenneth D. Garbade and Frank M. Keane – Liberty Street Economics

      “In response to disorderly market conditions in mid-March 2020, the Federal Reserve began an asset purchase program designed to improve market functioning in the Treasury and agency mortgage-backed securities (MBS) markets. The 2020 purchases have no parallel…”

      “Severe disruptions in Treasury market functioning, discussed here, and in the agency MBS market, discussed here, triggered the interventions. Cumulative purchases between March 13 and July 31 amounted to $1.77 trillion of Treasuries and $892 billion of agency MBS. The purchases were undertaken by the Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York, acting on instructions from the Federal Open Market Committee (FOMC) to make purchases “in the amounts needed to support [and subsequently sustain] the smooth functioning of [the Treasury and agency MBS] markets.”

        Aug 26, 2020 26:10 AM

        The Wolf Street Report: The Zombie Companies Are Coming

        by Wolf Richter • Aug 23, 2020

        “Easy money is a curse for capitalism.”

          Aug 26, 2020 26:16 AM

          Permanent Economic Damage – Danielle DiMartino Booth

          By Greg Hunter – August 26, 2020

          Former Fed insider Danielle DiMartino Booth is not a fan of the Federal Reserve, especially now, with its massive money printing campaign. DiMartino Booth thinks “the damage to the economy is permanent” and that’s not the only thing here to stay. DiMartino explains, “We are seeing permanent inflation increasing, and we have seen another uptick in initial jobless claims. This is not the data you want to see if companies want to have pricing power. . . . We do have inflation where it is not measured, and that is in asset prices and housing prices.”

          Di Martino Booth says the Fed will do everything possible to keep the money printing going. DiMartino Booth contends, “Anything they can do to keep the printing presses running, any cover they can try and create, any type of narrative they can try and paint that allows them justification to go from a $4.5 trillion balance sheet to a $7 trillion balance sheet. . . . The Fed is looking for cover to continue its constant quantitative easing (money printing) campaign. If it says it is going to let inflation run hot, it has that cover it is looking for. It is always about lower for longer. It is always about keeping the printing press running 24/7.”

            Aug 26, 2020 26:25 AM

            MISSION POSSIBLE: V Shape Recovery – Market Huddle Ep.92 WTF Clip of the Week

            Market Huddle WTF #VIDEO Clips


            Aug 26, 2020 26:07 AM

            She is a little SLOW…..Here at the KER, we (I)…figured it out a long time ago…. 🙂

            Aug 26, 2020 26:08 AM

            Referencing the above………
            Di Martino Booth says the Fed will do everything possible to keep the money printing going.

            Aug 26, 2020 26:14 AM

            Agreed OOTB, but she was bang on, and it is good to have voices like hers out there pointing out the insanity of FED policy. She’d be a good guest to interview here on the KER, but it would be preaching to the choir. 🙂

            Aug 26, 2020 26:16 AM

            Always good, to have confirmation……. 🙂
            Making sure we are not insane….. 🙂

            Aug 26, 2020 26:30 AM

            Actually Di Martino Booth is not a little slow. She, like many others, have been saying for quite some time that the Fed will continue to “print” currency.

            Aug 26, 2020 26:25 AM

            No Wayne……..we here at the KER have been saying…IT…. way before she was
            getting any commentary spots…..

            Aug 26, 2020 26:39 AM

            No OOTB Jerry. All I said was that she, like many others, have been saying for quite some time that the Fed will continue to “print” currency. I did not say she was saying it before you, whoever you are.

            Aug 26, 2020 26:21 AM

            Good, Wayne……that still makes here a Little Slow….. lol

            Aug 26, 2020 26:23 AM

            her not here……

            Aug 26, 2020 26:25 AM

            Better a little slow than not at all.

            Aug 26, 2020 26:53 AM

            When you are a little slow crossing the interstate, … might be all she wrote…. 🙂

            Aug 26, 2020 26:59 AM

            Yes, but she already crossed it so you can relax.

            Aug 26, 2020 26:25 PM

            Now she is in the weeds…..or in tall grass…with the rest.. lol

            Aug 26, 2020 26:57 PM

            Enough with the slow 🙂

            Aug 26, 2020 26:02 PM

            Chapter 32….David the Attorney, Slows down the FUN….
            New chapter in the KER HISTORY BOOK…(see Ex for explanation)

            Aug 26, 2020 26:31 PM

            You are right. I will give your football back and head home crying.

            Aug 26, 2020 26:38 PM

            Football is for sissies , Rugby for Men…… 🙂

            Aug 29, 2020 29:46 PM

            Obviously you never played the game.

    Aug 26, 2020 26:47 AM

    Throughout the history of mankind, whenever more currency has been created the price of real things (gold, food, real estate, prices of companies) has ALWAYS increased.
    Of course there are drops or recaluations when prices get out-of-line, because the market pricing mechanism is not perfect.
    However, please note the U.S. (and other countries) are destined to create more money indefinitely. THUS PRICES OF REAL THINGS ARE DESTINED, other things being equal, TO INCREASE INDEFINITELY.

    What really should worry folks is the destruction of companies, by shutting down, caused deliberately by Democrat leaders in positions of power, because of the pandemic of covid.
    Do not be surprised if many restaurant, hotel, travel-related stocks go to zero value/pricing.

    Aug 26, 2020 26:00 AM

    Ira’s Morning Flash for 8/26/20

      Aug 26, 2020 26:45 AM

      I believe Mr Musk.
      Its just a matter of time.

      Aug 26, 2020 26:47 AM

      There is an asteroid out there that is solid gold, and a moon around 1 of the planets that rains diamonds.

      Once we start to mine off planet, all resources we use will be abundant.

    Aug 26, 2020 26:22 AM

    Uh-oh Elon Musk is going to mine all the gold in space on asteroids. Watch out. Haha!


    ELONAGEDDON – Market Huddle Ep.93 WTF Clip of the Week

    Aug 26, 2020 26:39 AM

    Silver Viper drills 110.5 m of 38 g/t Ag at La Virginia

    2020-08-26 10:36 ET – News Release

    Mr. Steve Cope reports


    Aug 26, 2020 26:42 AM

    (BTU) (BTUMF) BTU Commences Geophysical Surveys in Advance of Late Summer Drill Program

    by @accesswire on 26 Aug 2020

    “The current IP survey program is focused on an area of the property along the south-west to north-east geological and structural trend that mirrors some of the rock sequences on the Great Bear ‘LP’ area and where the Company announced high gold in till results on August 10. The gold in till sampling results highlighted one sample that contained 156 total gold grains, including 115 pristine gold grains proximal to an artificial intelligence target from ongoing AI investigations. Gold in till results continue to show anomalous gold grain counts across the entirety of the surveyed area. The property shares a 35-kilometre border with Great Bear Resources Ltd.’s Dixie property.”

    Aug 26, 2020 26:44 AM

    Artemis’s Blackwater PFS shows after-tax IRR of 35%

    2020-08-26 07:44 ET – News Release
    Mr. Nick Campbell reports


    Artemis Gold Inc. has provided the results of a prefeasibility study (PFS) based on a revised development approach to the recently acquired, and 100-per-cent-owned Blackwater gold project in central British Columbia.

    Unlevered after-tax NPV5 (net present value 5 per cent) of $2.2-billion;
    After-tax IRR (internal rate of return) of 35 per cent;
    Payback on initial capital costs of two years.

      Aug 26, 2020 26:59 AM

      Excelsior, Laura is bearing down on east Texas but at least my dentist gave me a good report. After Cabral fell 25% yesterday I went ahead and bought some to join my TriStar in the Amazon basin of Brazil. I bought some Monarch and PREIF last week. Now I want some Aurania. Do you own that one? The chart looks like it might be ready to come down some. Thanks.

        Aug 26, 2020 26:04 AM

        Hi bonzo – That is good news about the dentist, not so much about Hurricane Laura.

        I own both Monarch and Precipitate Gold, but don’t own any Aurania at this point. I’ve looked at it and consider it a solid company, but am filled to the brim with mining companies at this point. (haha!)

          Aug 26, 2020 26:05 AM

          Bonzo – did you see this news out yesterday on Precipitate?

          ( PRG) (PREIF) Precipitate’s Copey Hill Zone Returns Additional High-Grade Rock Samples up to 17.0 g/t Gold at Ponton Project, Dominican Republic

          August 25, 2020

          “After recently reporting a 53.0 grams per tonne (“g/t”) gold-in-rock sample* from the Copey Hill Zone (see Company news release dated July 21, 2020), field crews returned to the vicinity to conduct additional detailed infill sampling in the surrounding area where the latest 73 rock samples returned multiple additional high-grade gold and silver results*, including individual highlight values up to 17.0 g/t gold and 37.0 g/t silver with a total of 30 rock samples ranging from 0.5 g/t gold to 17.0 g/t gold.”

            Aug 26, 2020 26:23 AM

            Yes, Ex, I did see the good news about PREIF. Cabral has some holes with over 100 and 200 grams of gold per ton. Do you own Cabral or TriStar? The reason I want Aurania is that I have nothing in Ecuador yet, and I like Keith Barron.

            Aug 26, 2020 26:39 AM

            I have looked at both Cabral and Tristar and both look very promising. If I was going to get into another Quinton H company it would likely be Eloro or back into Novo. For Brazil exposure I already have Jaguar, but I don’t want to increase it as Brazil is having issues with their handling of Covid-19, and their Real currency is having issues, and there are other jurisdictions I’d be more comfortable in.

            Same thing with Ecuador, it was working on getting things turned around and more mining friendly, but there has been more community pushback on mining again, I’d rather invest elsewhere. I was in both SolGold and Cornerstone capital a few times, but finally gave up after they wouldn’t stop fighting with one another and pissing off the larger majors. I’m sure Cascabel will get developed as it is too juicy of a deposit, but I’m in no rush to jump into Ecuador with so many other companies in better jurisdictions still at cheap valuations. I do believe Aurania is a solid company though and they’ve been hitting paydirt and expanding their resources successfully for some time. May your investment with them be very prosperous.

          Aug 26, 2020 26:07 AM

          Ex, be careful you don’t rise off the brim! LOL! DT

    Aug 26, 2020 26:55 AM

    Silver Bulls: Visualizing the Price of Silver

    The Visual Capitalist – August 24, 2020 – By Nicholas LePan

    Aug 26, 2020 26:01 AM

    I feel the correction is over for now, based on stocks I am watching. Happy Trading! DT

      Aug 26, 2020 26:08 AM

      It does look like a nice green day in the mining stocks today, and like the selling pressure is easing up. Maybe folks are digesting the nonsense the FED is about discuss tomorrow about letting inflation run hotter than their initial 2% target, and that this provides them cover to print to infinity and beyond….

      In the interview posted up above with Greg Hunter and Danielle DiMartino Booth they get into the games the FED is playing and what to expect tomorrow, and it is pretty good.

      I’m expecting a PM pop into the end of the week once investors marinate on the insanity.

        Aug 26, 2020 26:21 AM

        Got side tracked this AM and haven’t even read the news yet. However, Ex mentioned Silver Tiger yesterday and it popped into my head first thing this AM and I looked it up. I HAD to add some to the portfolio. Now, off to read the news while my portfolio is green.

          Aug 26, 2020 26:46 AM

          Hi David – yes, I’ve added 3 tranches of Silver Tiger already and would buy more if it pulls back again, but it looks like it is off to the race again today (which is nice to see).

          I’m very interested to see their drilling program results from this year, and some are calling them Silvercrest 2.0 (who I’ve also been adding to). We’ll see, but the results, team, assets, and story really stopped me in my tracks and I realized my personal Silver ETF needed it in the mix. 🙂


          (SLVR) (SLVTF) Silver Tiger – Summer Silver Conference 2020

          Red Cloud Financial Services Inc. – Aug 19, 2020 #VIDEO

          Aug 26, 2020 26:50 AM

          Some big #s on silver grade…and, throw in some gold just for a little more excitement.

      Aug 26, 2020 26:15 AM

      DT, not only do I think you are correct, I believe our miners are now in for a better move than what had between June and August. Probably much better.

        Aug 26, 2020 26:32 AM

        Thanks Matthew, I trust your knowledge and understanding of the markets implicitly. DT

        Aug 26, 2020 26:37 AM

        Thanks Matthew…your opinion lets me sleep better at night.

        Aug 26, 2020 26:00 AM

        Thank you both.
        I want to point out that I am still not sure about what to expect before Labor Day in terms of excitement but this year has been so “unique” that maybe the holiday doesn’t matter at all. If so, I’d expect to see upside action that convinces smarter bears they are wrong, soon.

        If we go scarily red tomorrow for Powells speech, I consider it a strong buy. Maybe IPT can spike to .74 after all?

          Aug 26, 2020 26:46 AM

          It is starting to look like we got most of the red out of the way the last few days pre-Powell speech, so I’m hoping the PM markets react like they should when they hear them yearn for hotter inflation and money printing, and that investors spike the punchbowl and seen PMs higher into the end of the week.

          As a result I’m glad I added to IPT yesterday at $.79 and today at $.77 and would prefer to see today’s action have been the low at $.76 and just skip $.74 altogether.

          IPT is currently at $.83 so fingers crossed that it is up and up and away from here…

            Aug 26, 2020 26:46 AM

            seen = send

            Aug 26, 2020 26:47 AM

            I’m hoping Glenfidish added this morning to his Impact position.

            Aug 26, 2020 26:33 AM

            IPT looks significantly better now, for sure.

            Aug 26, 2020 26:44 AM

            Up about 12% to $.87. Nice!

            Aug 26, 2020 26:12 PM

            IPT close up 20% on the day at $.94. Not too shabby. 🙂

            Aug 26, 2020 26:15 PM

            This comment over at regarding IPT Impact Silver made a lot of sense.

            @navderek – “Profitable at $18 silver…Traded at $1.25 with $23 silver back in July…..we have $27 silver now. Need I say more?”

    Aug 26, 2020 26:45 AM

    Ex, thanks for your thoughts on Brasil y Ecuador. I just looked at Aurania and it had risen from 3.20 this morning to 3.42, so I decided to by more LOMLF@ 1.41 instead. They might have a lion by the tail and also be in a safer country.

      Aug 26, 2020 26:52 AM

      Yes, Fiji is more mining friendly and more stable at present, and I agree that Lion One may really have the “lion by the tail”. I’m awaiting their drill results from deep feeder zones, and now that they have all the land in that 7km caldera, they are exploring new zones too like Banana…


      Quinton Hennigh, technical advisor to Lion One Metals (LIO) (LOMLF)

      Jay Taylor Media – Aug 12, 2020 #AudioInterview

      “Dr. Quinton Hennigh, technical advisor to Lion One Metals, provide reasons to believe the company may be on to a very large and rich high-grade alkaline gold system in Fiji.”

        Aug 26, 2020 26:55 AM

        Lion One to Retest High Grade Feeder With a Wedge Hole; Receives Gravimetric Assays for High Grade Zone

        August 17, 2020

        “Lion One Metals Limited (LIO) (LOMLF) is pleased to announce that it has completed diamond drill hole TUDDH500 to a depth of 863.4m and has now commenced drilling a daughter wedge hole beginning at approximately 400m depth to retest the newly discovered high-grade feeder (please refer to a company news release dated July 24, 2020). The Company has also received gravimetric fire assay results for the entirety of the high-grade feeder zone.”

          Aug 26, 2020 26:32 PM

          The Lion is asleep today.

            Aug 26, 2020 26:38 PM

            That’s fine. Make money in other stocks while the Lion sleeps tonight. I’m sure it will wake up in the days to come once the drill results are released.

            The Tokens – The Lion Sleeps Tonight


    Aug 26, 2020 26:59 AM

    Ex, I wish I had nailed this corrective move more like you did, this time I decided to simply wait things out because of the difficulty of moving in and out. Usually I’m also at home being an Italian Stallion. DT

    Aug 26, 2020 26:46 AM

    The Italian stallion has been eating too much pasta while in lockdown…..not going to be able to run up any steps soon.

    Aug 26, 2020 26:06 AM

    Metallic having a good day also. Not sure why, but there is increased interest.

      Aug 26, 2020 26:21 AM

      Today is the Reversal in Fortune day. Alexco’s little cousing Metallic is up about 30% and they have an active drill program underway. Also nice insider buyer lately.

      Make it rain MMG…. Make it rain….

        Aug 26, 2020 26:02 PM

        As things progress, lots of miners hitting double digits gains today.

        Very nice action in the PM miners today for a change.

          Aug 26, 2020 26:12 PM

          10 in double digits and 11 negative of which Bayhorse always one of the negatives. I tap on the screen and it just sits there, negative…laughing…taunting…

    Aug 26, 2020 26:49 PM

    Great moves today in the silver space! So many great advances, to many to name!