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Weekend Show – Investing In This New High Volatility Market

Cory
February 12, 2022
Full Weekend Show

What a wild week in markets! 2022 has flipped the narrative from what 2021 gave us in terms of easy money and easy markets.

 

On this Weekend’s Show we focus on the entirely different environment investors are facing. Inflation data this week and rate hike expectations spiking continue to rise while markets continue to show weaknesses. Plus we have  potential war between Russia and Ukraine.

 

Please keep in touch by emailing us at Fleck@kereport.com and Shad@kereport.com.

 

 

  • Segment 1 and 2 – Peter Boockvar, Chief Investment Officer at Bleakley Advisory Group and Editor of The Boock Report kicks off the show with an extended discussion on inflation, Fed policy, US Markets, and commodities. Click here to learn more about Peter’s Boock Report website.
  • Segment 3 – Kai Hoffmann, CEO of Solar Financial Group joins me to recap the financing environment for resource companies. Did compare last year’s financings to decades past and the sectors generating the most cash currently. Click here to learn more about the SF Online Conference on February 16th.
  • Segment 4 – Jayant Bhandari, Private Investor wraps up the show with a discussion focused on the junior resource stocks. This sector of stocks has been hit really hard but there are some good values to be found.

 

Exclusive Company Interviews This Week

 

 


Peter Boockvar
Kai Hoffmann
Jayant Bhandari
Discussion
64 Comments
    BDC
    Feb 12, 2022 12:21 AM

    SPQ : https://tinyurl.com/2vc9pznu
    Historical Week Upcoming.
    Bad Moon Rising?

      BDC
      Feb 14, 2022 14:26 AM

      NatGas Breakout

    Feb 12, 2022 12:43 AM

    The tweet that sent stock markets south and gold + gold miners north on Friday

    https://mobile.twitter.com/PBS/status/1492225859067035655

    Feb 12, 2022 12:07 AM

    I think Terry mentioned this article about Copper by Goldfinger, here is the link. DT

    https://ceo.ca/@Goldfinger/copper-bull-market-set-to-resume-four-ways-to-play-it

      Feb 13, 2022 13:36 AM

      Thanks for that. Added universal to my copper list of explorers. Another bc play to boot.

        Feb 13, 2022 13:14 AM

        Looking at Goldfinger’s article at the end I see this: “Disclosure: Author owns shares of Ivanhoe Mines, Copper Mountain Mining, Libero Copper & Gold, and Universal Copper at the time of publishing and may choose to buy or sell at any time without notice. Author has been compensated for marketing services by Universal Copper Ltd.”

        While I appreciate the candor does the last sentence give anybody pause?

          Feb 13, 2022 13:36 AM

          Hi Mike. The macro Copper picture is exactly like Goldfinger laid out, and him disclosing which companies he is paid to help market is a good thing and him being very transparent. There is nothing wrong with getting paid to help market a company’s story and he mentioned it there, so folks can take that bias on those companies with a proverbial grain of salt, but it doesn’t make them bad or good companies just the ones he felt like highlighting. The fundamentals for the red metal are still excellent and if people don’t like those companies they can pick from the other 150 copper stocks.

          In my own full disclosure Libero Copper that he mentioned is my largest copper position personally, because I believe their Mocoa and Esperanza projects could end up being world class with more exploration. Libero is also a KE Report site sponsor, so consider me biased as a shareholder and since they are a friend of the show… (but also consider me impressed with the historic drill holes in both those projects. They also have 2 projects located in B.C. Big Red and Big Bulk that are just more optionality to their story).

          Feb 13, 2022 13:38 AM

          If I let he fact that someone was being paid to promote a stock influence me, there wouldn’t be too many stocks left for me to buy…….bringing my attention to it is only the first step….after that I look into it myself and make my decision.

            Feb 13, 2022 13:46 AM

            Bingo Wolfster. Almost every company worth anything has a few different people or companies marketing it, or they won’t get the word out to the marketplace well. There are some companies that do very little marketing and brag about that and then their stocks are dead in the water. All successful companies spend some money on marketing, promotion, and advertising, in some form or manner.

            If someone as sharp as Goldfinger or Doc Jones or Bob Moriarty or Eric Sprott or whoever one likes to follow has vetted a company, then I don’t mind taking a deeper dive, as it has already made it past their smell test. It’s the same kind of idea as looking a Junior mining company with a Major mining company that has taken a strategic position in them. That means that company has already researched their team/projects/business strategy and liked it enough to own a piece of it. That doesn’t necessarily mean it will be a winner either, but it means that company has been vetted by 3rd party and didn’t get discarded.

          Feb 13, 2022 13:41 PM

          Mike, it should give you pause in my book. Of course that doesn’t mean the company being promoted is bad as most resource companies do some kind of promotion periodically but it’s wise to consider promotional material differently than the rest.

          Feb 14, 2022 14:54 AM

          Ex, Wolfster, Matthew: Thanks for your comments and thoughts. First I have to say that I find Goldfinger’s post and interviews more useful than many I have paid for in the past and I certainly meant no disrespect. I deeply appreciate that he shares his work. I was just hit by the sentence. Ultimately everybody, including me, “talks their book”. A bigger concern would be somebody that talked something up and didn’t own it.

          Anyway, I appreciate the pointer to Universal Copper – it may be a good addition to the speculative stocks that live in my Roth.

            Feb 14, 2022 14:44 PM

            Good thoughts Mike, and it was a valid question to ask. The reality is that most people that are working full time in the newsletter business, like Goldfinger, or any of them have to pick a model where they either have sponsors (like Erik the The Hedgeless Horseman, or John Feneck, Eric Coffin, Gwen Preston, Brien Lundin, etc…) or they do a subscription based service (like Dave Erfle, Jordan Roy-Byrne, Brian Leni, Joe Mazumdar, Steve Penny, etc…)

            So for example, here at the KE Report we run off a sponsorship model, but all the content is free. Cory and I try to be fair and ask questions around strengths and weaknesses, as well as opportunities and threats when we interview sponsor companies, and we are not pounding the table to pump our sponsors telling everyone they’ll be a 10 bagger in no time… and all that garbage. We screen the companies we bring on, and try to bring on ones with compelling teams, projects, and growth potential, but obviously every story isn’t going to work out.

    Feb 12, 2022 12:08 AM

    What currency to park cash?

    I have a larger cash position and thinking about parking it in different currencies, CAD, AUD, USD

    Has anyone a recommendation?

      Feb 13, 2022 13:40 AM

      My cash savings is all in US Dollars, but if I were to diversify I’d put some in Canadian dollar, Japanese Yen, Swiss Francs, physical Gold & Silver & Platinum. Some may suggest a tiny allocation to Bitcoin as well, but cryptos are very divisive with some loving them and some hating them, so I hesitate to bring it up, but feel it would be reasonable to put in a 5% or lower allocation as another vehicle of exchange.

    Feb 12, 2022 12:47 AM

    If one is worried about a liquidity crisis the USD (reserve currency) is king. Bullion can also act as cash.

    Feb 12, 2022 12:30 PM

    Gold went up because it was time for it to go up. It had broken out of important resistance and given various daily chart and lesser chart buy signal so the upper Bollinger band at 1859+ became an easy target. Even the weekly upper Bollinger band at 1862+ happened to be in play and the weekly chart was already friendly to a move up.
    https://stockcharts.com/h-sc/ui?s=%24GOLD&p=D&yr=1&mn=5&dy=18&id=p46559320190&a=1110860023

    Feb 12, 2022 12:20 PM

    On the following weekly SPY:GLD chart, take a look at the MACD and you will see that the writing on the wall has been present for many months. The message for many months? Sell stocks on all strength and buy gold (or gold related) on all weakness.
    Stocks now show real crash potential versus gold and the same is setting up versus dollars if the Fed meeting on Monday doesn’t help to pull the rug out from under the dollar causing it to weaken significantly (thereby somewhat levitating nominal stock prices as they plunge in real terms).
    You see, under the wealth-redistributing central bank, stock market crashes and deflations are largely hidden from the public by massive counterfeiting. It even works on longtime professionals like Bob Hoye who perennially think that deflation is still coming. For example, the Dow fell 89% between 1929 and 1932 falling from about 19 ounces of gold to a little over 1 ounce. The total decline versus gold was more than the nominal 89% decline because FDR devalued the dollar when he pegged it to gold at $35 per ounce instead of $20.67 per ounce. However, things were very different following the next Dow-gold peak in the late 1960s. That peak was significantly higher at 28 ounces of gold and the real decline by 1980 was similar but slightly greater at about 95%. The big difference was in the nominal declines. Following the ’29 peak, the Dow was down 89% versus the dollar by the time it bottomed versus gold but following the ’66 peak, the Dow was down about 8% versus the dollar by the time it bottomed versus gold.
    Post 1929 nominal and real declines: 89% and over 93%
    Post 1966 nominal and real declines: 8% and 95%
    Making the smoke and mirrors show worse, the nominal stock market decline in the 1970s did reach about 45% but it happened in 1974, a little over 5 years before the real decline was finished. In fact, the real decline had barely begun. So, buyers of that “45% off” Dow “sale” enjoyed a 62% nominal rise by 1980 and felt like winners while in real terms, the Dow was getting the worst of its crushing blows. Strangely enough, 62% is the real amount that it fell during the time that it showed a 62% nominal rise (that suckers paid taxes on!).
    https://stockcharts.com/h-sc/ui?s=SPY%3AGLD&p=W&yr=6&mn=5&dy=0&id=p19898438050&a=1015547995

      Feb 12, 2022 12:56 PM

      Hi Matthew, if you had bought a lot of RDS.a (now SHEL) in 1981@5.50 what with you do with it now? I sold 8% of my shares on Fri@55.64 but am thinking maybe I should sell more. I still have XOM, CVX, SU, and DVN. Thanks.

        Feb 13, 2022 13:34 PM

        Hi Bonzo, I like SHEL and think it is going much higher in the long term and maybe even this year but I also think big gold miners will easily beat big oil producers this year and probably next year.
        Oil and commodities in general are going much higher in the years ahead and SHEL’s long term charts indicate that it will too.
        Days to weeks out from right now, I think SHEL will get smoked by all things gold/silver related and it might soon even pull back versus dollars for awhile. The short term picture looks the riskiest for SHEL and that could turn into the medium term worsening but the long term looks safe.
        I can’t and shouldn’t say what you should or shouldn’t do but assuming you’ve got a well diversified portfolio and know how to manage your risks, I’d be tempted to trim SHEL to overweight the gold and silver space to grab what I think is a fantastic opportunity right now. That opinion will get much stronger if this week cooperates with very strong follow through action.

    Feb 12, 2022 12:10 PM

    Bubba was short PM’s, last time I heard—

    Feb 12, 2022 12:23 PM

    All in one week the HUI took back its 30 week MA, KAMA, and 50 week MA (not shown) and 50 week EMA. Now that the 30 week MA is rising and price is well above it, you can expect buying from followers of Stan Weinstein.
    Notice that the simple and objective weekly MACD buy signal came in October about 2 weeks after the low when I said that I thought we had a low. The HUI is currently up about 18% from that low. [For the record, that MACD buy signal is far from the best way to enter a trade and never how I do it yet it still beats most players’ best attempts.]
    https://stockcharts.com/h-sc/ui?s=%24HUI&p=W&yr=3&mn=3&dy=0&id=p16652306022&a=949257852

    Feb 12, 2022 12:44 PM
      Feb 13, 2022 13:46 AM

      +4, 3, 2, 1…. Nice Matthew. A classic 80’s tune!

    Feb 13, 2022 13:49 AM

    Thanks to all the KER guest contributors for another great week of daily editorials, company interviews with management, and another solid weekend show with Peter, Kai, and Jayant.
    .
    Also thanks to all the listeners of the podcast, and those members of the KER crew that post and participate here on the blog, sharing insights with our community. Ever Upward!

    Feb 13, 2022 13:51 AM

    Gold’s Coiling Action Tightens as Inflation Surges

    David Erfle – Friday February 11th, 2022

    “The key $1,800 area continues to be a magnet for gold. Rallies have been sold, and sell-offs have been bought with traders on both sides continuing to be whipsawed out of position. Since mid-2021, any advance, or decline, that bullion has made quickly ran out of steam and has returned to the $1,800 zone.”

    “This frustrating sideways movement inside of a tight $100 range has resulted in what technician’s call ‘coiling action’, which will likely end in a sharp move in either direction. The tighter and lengthier the trading action becomes around $1,800, the more pronounced the eventual move will be, whether up or down.”

    https://mailchi.mp/6278ba032914/david-erfle-weekly-gold-miner-sector-op-ed-1600578

    Feb 13, 2022 13:56 AM

    The Market Is Wrong About Inflation And The Fed

    By Sean Brodrick on February 12, 2022

    “On Thursday, the markets panicked about inflation and interest rate hikes. I think the market is wrong, and that opens up an opportunity for savvy investors.”

    “I’m not going to make excuses for Wall Street’s herd of well-heeled weasels, but the freak out was caused by James Bullard, president and CEO of the Federal Reserve Bank of St. Louis and a voting member of the Federal Open Market Committee (FOMC). Bullard reacted to the latest Consumer Price Index (CPI) data released for January.”

    “You saw that, didn’t you? Inflation hit a 40-year high at 7.5%.”

    “This should come as no surprise if you’ve been reading my columns. Last month when inflation hit 7%, I warned that “inflation is going to get a lot worse before it gets better. In fact, I’ve been writing about rising inflation for about a year now, and … I’ve been right all along. And Wall Street, well … Wall Street has been wrong.”

    “So let’s get back to Bullard and the panic he’s caused … After news hit that headline inflation hit 7.5%, Bullard announced that surging inflation had made him much more hawkish about raising rates. On Thursday, Bullard said, “I’d like to see 100 basis points in the bag by July 1.”

    https://weissratings.com/en/wealth-wave/the-market-is-wrong-about-inflation-and-the-fed

      Feb 13, 2022 13:05 AM

      How Inflation Affects Gold and Silver

      Feb 11, 2022 – CPM Group’s Jeffrey Christian discusses the January CPI data and puts inflation in perspective. Jeff continues by discussing the important differences between annual inflation and month-to-month inflation and what to expect from gold and silver in the coming months.

      0:00 – Intro
      1:50 – US Real GDP
      3:40 – Inflation in perspective
      5:00 – January CPI changes
      6:20 – Year Over Year Inflation
      8:15 – Month to Month Inflation
      17:54 – Upcoming events and research

      https://youtu.be/WVfJrXAS2sU

        Feb 13, 2022 13:28 AM

        Kevin Smith: Inflation Is Here To Stay

        Palisades Radio – Feb 8, 2022

        “Kevin shows us his recent presentation and how the commodities to equities ratio are near all-time lows. We have record valuations for stocks at large. During periods of high-inflation equity markets can go quite flat or even negative.”

        “We’re seeing concentration in just a few tech stocks and the top five market cap companies are now 54% higher than during the Dot Com bubble. Few investors today remember a high-inflationary environment. We call what is coming ‘the great rotation’ which envisions investors leaving growth stocks and moving to undervalued inflation hedged assets.”

        https://youtu.be/Z0dUWTZEsC0

    Feb 13, 2022 13:57 AM

    The Most Negative Earnings Guidance Since 2009

    Jesse Felder – The Felder Report – 02/12/2022

    https://mailchi.mp/felder/negative-guidance

      Feb 13, 2022 13:20 AM

      Larry McDonald: Upcoming Rate Hikes will Inflict more Pain than Normal

      Palisades Radio – Feb 8, 2022

      https://youtu.be/H1XXz1ftGbQ

        Feb 13, 2022 13:50 AM

        Matt Geiger: Seeing the Pendulum Swing Back from Growth to Value Investing

        Palisades Radio – Feb 7, 2022

        “Tom welcomes back MJG Capital Managing Partner Matt Geiger to the show. Matt discusses his fund’s performance during 2021 and how things have changed from 2020. He explains their weightings for precious metals and his long-term investment approach. There are advantages to being more patient than other investors.”

        “Matt is excited about the long-term prospects for energy metals due to the global decarbonization efforts. Energy metals are going to be a good space to be in but be careful of overall market risks. Ag commodities and fertilizer are also looking good.”

        “Matt discusses the overvalued S&P and how equity markets are dangerously priced. Sentiment and valuations are currently lining up to bring serious concern regarding these markets. Equities are now valued higher than during the Dot Com bubble and in the last year, retail investors have put more money in markets than in the last 19 years combined. We’ve reached euphoric investment levels.”

        “Passive ETFs have created a feedback cycle of re-investment but eventually, we will have a true risk-off event. This will bite investors at some point.”

        https://youtu.be/G8-lU2wOqgQ

    Feb 13, 2022 13:46 AM

    Quiet weekend for posts ……super bowl parties???…shock of gold move Friday afternoon???….Matthew you mentioned stocks show real crash potential vs gold…..where would you put gold stocks????

    I’m still liking the copper explorers more and more. The few I follow all look primed for moves to the upside.

      Feb 13, 2022 13:49 AM

      I tend to agree on copper. Going to be shortages with all the electric demands. I also think oil is in the same category as can’t meet future demands. I also have base metals more than PMs as I do not think politicians, The Fed or Particularly JPM can stop their business models of corruption.

        Feb 13, 2022 13:42 AM

        Yeah I have to say without doing it with intent, I have started to slowly increase my base metal and oil holdings

      Feb 13, 2022 13:14 PM

      Wolfster, I put gold stocks right behind silver stocks as the best stocks to own this year. Keep in mind that the stock market’s crash potential versus gold is very different than any usual crash potential versus dollars. For example, a big drop on a SPY:Gold chart could happen in large part because gold went way up in dollars not just because SPY went way down in dollars. My guess is that there will not be a stock crash in dollars but that they will fall much further over time. Stocks will show more crash-like action versus gold because gold will be rising and rising significantly.
      Friday’s action was very bullish in a number of ways but one of the most obvious ways was the fact that the riskiest part of the gold space, the silver juniors, performed so well while stocks tanked. As mentioned elsewhere, SILJ gained about 6% while the semiconductors lost about 5%. That is very impressive and makes me think that when the stock market merely has a flat day, we could see a 10%+ day in SILJ easily. The stage is now perfectly set for gold and silver stocks to perform extremely well as the general stock market has a rougher time than most expect.

        Feb 13, 2022 13:44 PM

        Thanks Matthew…..I guess I’m used to the general markets dropping and triggering margin calls and it being the winners that get sold in typical flawed thinking by unsophisticated investors

          Feb 13, 2022 13:40 PM

          Well that’s what happens most of the time but this setup is far from “most of the time” and the weak hands have already been thoroughly flushed from the gold/silver miners while mainstream types who also held our miners are probably now focused (wrongly) on buying dips in the general market and maybe even selling what’s left of their miners to do so. A lot of former gold bulls now hold lots of cash and are even looking at other resource sectors like copper because they’ve lost interest/conviction in the gold space. It’s typical action at a major low.

            Feb 14, 2022 14:14 AM

            Interesting point of view. Hopefully it plays out the way we are all positioned

    Feb 13, 2022 13:19 AM

    How will the markets react on Monday?

    There is a lot of uncertainty about the situation in the Ukraine

    https://www.reuters.com/world/europe/us-officials-wont-confirm-reports-possible-russia-invasion-ukraine-wednesday-2022-02-13/

    Feb 13, 2022 13:59 PM

    So a few of us on here had discussed on here in December that Gold would likely have it’s Q1 Run coming into 2022. Many felt that was unlikely expecting a selloff in the precious metals heading into the period before the rate hikes started with most suggesting the January effect would be bad for Gold, that February was going to be an ugly month and then also March, expecting gold to get back down into mid $1600s again, and with Silver breaking down to $19. Well so far the bears have been very wrong-footed all year long.

    At the end of last year in December Gold hit mid $1760s a few times and on Jan 2nd kicked off the year at $1795. Then Gold did rally in January up to $1853-$1854 on 24th, before falling back out of bed at the end of last month. Then the next wave of bears came out stating it was a bull trap and false breakout and that Gold was definitely going to go down and break $1750, then $1721, then $1675, and put in a lower lower in the $1600s once again.

    Well…. Now gold has continued to rally further in Q1 and closed this last Friday at $1860, making a higher recent high than in January, which is bullish action. For a while we had daily doom and gloomers on here saying to sell all your gold and silver as it going down for the count. Oh really?

    Even last week we heard from a few different people that gold wouldn’t get through $1830 resistance and would get rejected back down into another corrective move.

    So all those that have been calling for gold to break down into a final washout for the last few months due to technical analysis, then how does one explain that Gold rallied up to $1853-$1854 in January making a new recent high, followed by a run to close $1860.40 on Friday (after making a new higher high intraday up to $1867 on Friday) making another higher high for February. Silver is nowhere close to $19 yet, closing Friday at $23.59.

    It looks like the Q1 Run has played out once again, as expected, despite so many people doubting it was remotely possible.

    This is typical market action with a stealth bull market making higher lows and higher highs, while most have been steadily calling for a breakdown the whole time. The bull likes to shake most riders off his back, inflicting the most pain possible, as it climbs the wall of worry. Some things never change…

    https://www.investing.com/commodities/gold

      Feb 13, 2022 13:13 PM

      Say it ain’t so Joe……..speaking of Joe…..🤣🤣🤣

        Feb 13, 2022 13:36 PM

        Hilarious Wolfster! 🙂

        Yeah I was thinking of ole’ Joe “sell all your gold now” when I was writing that. Haha!

        To be clear though… Joe was not alone in his bearish calls… far from it….

          Feb 13, 2022 13:44 PM

          One other very simple and dispassionate question anyone can ask themselves, regarding the 2 lines in the sand that will signal a breakout or breakout in the trend after this long consolidation.

          “At $1860 Gold pricing to close this last Friday, is it closer to breaking above $1900 resistance, or breaking below $1675 support?”

          https://www.investing.com/commodities/gold

    Feb 13, 2022 13:35 PM

    The other thing most market participants have been dead wrong about inflation.

    We heard in Feb & March of last year from the Fed that there was nothing to worry about with inflation and it would simply be “transitory” with a month or two of supply chain issues and base effect to work off and then it would pull back down to their 2% target level.

    What is nuts is that most of the main stream generalist investors (and even some guest we bring on the show here) completely bought their story, which as anyone following along with the trends knew was a complete load of horse dung. There was WAY more going on than just lumber and used car prices for anyone that looked at all the areas of life seeing an increase in inflation, but the lemmings are easily led over the edge of a cliff… willingly.

    Many of us here on the KER were quick to point out that it was very unlikely that inflation would simply be transitory, and that the massive money printing and in particular insane levels of government stimulus were causing more money to slosh around chasing fewer goods… which is inflationary by definitiion.

    There were plenty of areas of runaway inflation in areas that absolutely nothing to do with supply chain issues (rents, healthcare, senior living, events, services from massages to landscaping, hotel rooms, airfare, etc… not to mention food cost and energy costs). Most “economists” on the main stream economic outlets conveniently ignored just how bad inflation was in these areas though, and preferred just touting the accepted narrative.

    Last summer the FED sycophants continued to defend the “transitory” narrative even months after things were not only pulling back with inflation metrics but in fact inflation was getting worse. “No inflationists, you are going to see the FED is correct and this will all be over soon.” People kept on with the mantra “this too shall pass.” Only… it didn’t pass and then the markets were well beyond any base effects going into last Autumn. Their narrative was crumbling but rather than admit they were wrong people kept on with inflation would be back down to 4% then 3% then 2% in just a few months and all of this commotion would be for nothing.

    Then when inflation ran up higher and higher people were just convinced that 6.2% surprise number October was definitely the high, as they had been expecting inflation to have started pulling back down since March & April. The Fed decided to change their verbiage and admitted that inflation was not going to be “transitory” proving that the only thing transitory was the use of that word. This didn’t stop Fed apologists from coming out saying Powell shouldn’t have said that as we were definitely going to see disinflation from here in a big way and October’s number was just going to be a wild blow-off top…. right? [Wrong]

    Well, those people expecting disinflation for the latter part of 2021 were wrongo in the Congo and then the CPI reading for November vaulted up to 6.8% and the PPI number went up to 8.7%. For some reason, even in the face of obvious record high inflation, many generalist could still not admit they had been wrong for all of 2021. OK, surely 6.8% was the top right?

    Then came Decembers CPI reading of 7% and the PPI reading over 9%. Transitory? [Hell no.] Just base effects and supply chain issues only? [Nope sorry, that was lame narrative in the first place, but it clearly unraveled throughout all of last year.] Finally by this point most regular new outlets and everyday people were well aware there was nothing fleeting with the inflation everyone has been experiencing in their daily lives. If you go to a restaurant, go grocery shopping, rent a car, book a hotel night, pay for a service, etc… you know inflation has been even higher than the massaged government numbers, but even Joe Sixpack and Sally Soccermom was starting to realize inflation was a problem. Still…. some “economist” pressed on that secretly inflation had peaked months ago if looking at month over month data. Yeah….. No….

    Well, we just had an even higher inflation reading for January with CPI at 7.5% It laughable how wrong the deflationists and disinflationists have been the whole way along, and as they sit around scratching their hind ends puzzled by it all, for anyone that actually understands all the signals we’ve been seeing for well over a year = massive money printing, government stimulus to infinity and beyond, surging energy prices, rising commodity prices, and rising wages….. it couldn’t have been a more obviously inflationary environment… yet so few believed we’d even get to 2% or even 3% much less 7.5% and over 40 year highs in inflation.

    Once again most of the generalists, market commentators, Fed apologists, and even some very sharp people got it completely wrong with inflation for over a year now. The Fed is now soooo far behind the curve and the yield curve is so flat, that even if they came out hiked 4 to 5 times at 1% a piece, they still would be way behind in negative real rates.

    What are the odds that the Fed can hike enough to get rates up OVER 7.5% …. next to nil. Most would say impossible. As we’ve been saying for a while, there was a “check mate” moment coming for 2022 where even the most dim bulbs would have a light go on that the Fed has lost control of the markets and will be unable to do enough to really make a dent. At their own admission their policies take 6-12 months to take effect, and what in the world are they going to do if inflation stays up in the 6-7% or even worse, if it heads even higher?

    They are now finally ready to hike rates with all the forecasts for GDP growth now stalling and slowing, and it is going to be a whopper of a policy error. This point we are fast approaching can’t be understated in how obvious it was all along to anyone with 2 brain cells to rub together, nor in how it will eventually roil the markets.

    Got gold?

    Feb 13, 2022 13:40 PM

    Monday morning Sydney, Aussie gold miners open up 7%.

    Feb 14, 2022 14:26 AM

    https://www.zerohedge.com/news/2022-02-13/insider-exposes-bis-dumping-unallocated-gold-risk

    Insider exposes BIS dumping unallocated gold risk

    Andrew Maguire shares word from an inside source that Basel III compliance has driven a top-tier bank to unload the last of their unallocated gold contracts.

    Feb 14, 2022 14:52 AM

    Even last week we heard from a few different people that gold wouldn’t get through $1830 resistance and would get rejected back down into another corrective move.

    Ex let me make it clear so everyone better understands what I was speaking of with Matthew and sharing with the audience. I said there was a possibility and odds could favor gold reaching give or take $1830 and then heading back down to $1785/1780. This event which was not stated would have been a very quick move possibly a 1-2 day event a nothing burger lol.. I have and remain the same ultra bullish as stated way back then and February would be explosive and thus far gold is leading the way and I expect it to go much higher and drag the miners with it. Next 2-3 months run before correction nothing big imo

      Feb 14, 2022 14:38 AM

      Sounds good Glenfidish. Yep, so far in 2022 there has been a steady advance higher in Gold for the Q1 Run that we typically see in Jan & Feb. Whether we’ll see any corrective moves from here and heading into the March Fed rate hikes as Doc and Jordan and others have suggested is still a going concern. However, with Gold in the mid $1860s (after having spiked up to $1872 today), it has been constructive for the sector.

    Feb 14, 2022 14:34 AM

    Welcome to a new week: Things mostly green.
    I have some up and some down. …never mind.
    Mixed bag: some of each type of miners up and down no matter what type of metal up or down. Not an accident. Well …. One of Fed Governors on CNBC this morning, so truth is not on the agenda.

      Feb 14, 2022 14:49 AM

      However…up + 6.02% at moment.

        Feb 14, 2022 14:34 AM

        Emerita is up.. all others cancelled themselves out for 0 gain/loss… as most days. Difference being Emerita is up

    Feb 14, 2022 14:35 AM

    Highest Weekly Close For Gold Since November Snaps Downtrend

    by @Goldfinger on 14 Feb 2022

    “Technical analysis isn’t rocket science, it is the study of market participants through the study of price action, volume, and other indicators. While we can make it as convoluted as we like, the reality is that price and volume are the two primary technical ‘indicators’ and everything else flows from these two. Gold has been making higher lows for many months, a classic sign of accumulation.”

    https://ceo.ca/@goldfinger/highest-weekly-close-for-gold-since-november-snaps-downtrend

    BDC
    Feb 14, 2022 14:55 AM

    Michael Boutrous (PMs @ 10:07) – https://www.youtube.com/watch?v=5pgPFkLlvno

    Feb 14, 2022 14:18 AM

    Oil is up 2% yet OIH is down 2.2%. That’s not good and it might be that oil related stocks are sensing an imminent top in oil.
    https://stockcharts.com/h-sc/ui?s=OIH&p=D&yr=1&mn=1&dy=0&id=p49224506807&a=1112424816

    Feb 14, 2022 14:20 AM

    The gold and silver mining ETFs have strengthened today as the uranium mining ETF (URA) has weakened.
    https://stockcharts.com/h-sc/ui?s=URA&p=W&yr=2&mn=0&dy=0&id=p06627339364&a=1112001746

    Feb 14, 2022 14:28 AM
    Feb 14, 2022 14:36 AM

    Thanks for the updates.

    I am having a second 100% gain (it already did about an 80% turn around) in Copper Lake and a second time that nothing is really going on newswise. Fine with me …again.

    BDC
    Feb 14, 2022 14:47 PM

    November GLD island reversal: now history!