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S&P Lower Targets, Fed Policy Differences, and Target Deficits but At Debt/GDP

Cory
December 10, 2018

Doc joins me today to share his thoughts on the US markets, Fed policy, and overall deficits in the US. What is important when it come to the larger deficit is that debt to GDP has been held in check. If we see this broader based slowdown then this ratio could get out of hand which make everything much harder for the Fed and US overall.

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Discussion
22 Comments
    Dec 10, 2018 10:19 AM

    Doc what your thoughts on oil? Also will gold retest 1200 area or are we headed higher from here now that stocks are collapsing.

      Dec 10, 2018 10:23 PM

      Paul, gold is topping again and then we move back down toward the 1200 area again. As mentioned before, I believe we’re in the process of forming a lower trading range. I wouldn’t be surprised to see oil move down into the 40-45 range before it bottoms.

    Dec 10, 2018 10:20 AM

    GDX is likely coming back down to backtest the 100 dma this week and into the 19th. I’m guessing that the Fed is give GDX and gold a quick pop to test their respective 50 WMAs, but I think they come right back down. Basically, I think GDX is going to be more or less sandwiched between its rising 10 WMA and its declining 50 WMA. Also, I am expecting a large drop below the 10 WMA in late January. I think the miners will make the next big upward move in early February which will be the beginning of the next intermediate cycle, which should take GDX back over $23.

    Dec 10, 2018 10:21 AM

    The Only Way GOLD and Silver !!!!! https://www.youtube.com/watch?v=ja0EeLCraXI

    Dec 10, 2018 10:36 AM

    Hi Doc, have you sold your MRK? I sold mine today@77.49. I paid 9 for it and should’ve sold in 2001@97. It fell to 20 in 2009. Now I can get thrice the dividend from IMBBY or twice with MO. If our grandfather had put $1000 into MO in 1925 it would be worth 50 million today. If we had put $1000 into MO in 1970 it would be worth 5 million today.

    Dec 10, 2018 10:13 PM

    Hi Doc. Can you give me any insights on the Scandium International chart? The ticker is SCYYF or SCY.TO. Best Regards, Charles

      Dec 10, 2018 10:07 PM

      Charles, interesting chart. Looking at the long term charts on this one is most important. I feel eventually the BBs on the monthly chart will really narrow. It appears this stock will take another run down to about $.15 on the Toronto stock exchange—scy.to. By the way, that narrowing should happen sometime in the second quarter of 2019.

        Dec 11, 2018 11:38 AM

        Thanks Doc. Really appreciate your take. I bought some at around $0.16 per share a while back and was thinking about buying some more, but I will wait for a while to see if the monthly BB comes as you anticipate.

    Tom
    Dec 10, 2018 10:33 PM

    Once there is a deal on trade, this market will slingshot to new highs dragging everyone and there dog back in before the crash.

    Dec 10, 2018 10:35 PM

    India, UAE sign currency swap deal to boost trade ties

    December 04, 2018 – Fareed Rahman, Senior Reporter

    “Through the currency swap agreement, both India and the UAE can make payments in their respective currency to boost and trade investment without the involvement of a third currency like dollar. Clarifying the currency swap agreement Indian embassy in Abu Dhabi said the swap is for an amount of Dh2 billion or 35 billion Indian rupees, depending on the central bank which is requesting the amount.”

    “The bilateral currency swap agreement between India and UAE is expected to reduce the dependency on hard currencies like US dollar,” Indian embassy said.

    https://gulfnews.com/uae/government/india-uae-sign-currency-swap-deal-to-boost-trade-ties-1.60747553

    Dec 10, 2018 10:37 PM

    Miners operating in Colombia accused of forcing people off their land

    Valentina Ruiz Leotaud | a day ago

    “South Africa’s AngloGold Ashanti (JSE:ANG) (NYSE:AU) and Canada’s Continental Gold (TSX: CNL), as themselves or as their subsidiaries, are amongst the foreign companies mentioned in the report. Back in 2014, both miners had to abandon their gold operations in the Chocó and Antioquia departments because they were taking place on the land of the Embera-Katío tribe.”

    http://www.mining.com/miners-operating-colombia-accused-forcing-people-land/

      Dec 10, 2018 10:19 PM

      Massive, corrupt B.C. cannabis, crypto, mining and energy shares scheme alleged by Securities Commission

      By Graeme Wood, Glacier Media | December 5, 2018

      “So-called consultants bought stocks and flogged them after getting most of their money back in consulting fees…”

      https://biv.com/article/2018/12/massive-corrupt-bc-cannabis-crypto-mining-and-energy-shares-scheme-alleged

        Dec 10, 2018 10:22 PM

        Investors should really read the above article ^^ highlighting the games, schemes, and illegal activities that some of these Cannabis, Crypto, Jr Miners, and Energy companies have utilized. Hopefully those goons will be behind bars for a long time, right in time for the next group of scheisters to show up.

          Dec 10, 2018 10:36 PM

          BCSC Executive Director alleges scheme by self-described consultants

          by @newswire on November 26, 2018

          The issuers:
          Cryptobloc Technologies Corp.; New Point Exploration Corp., Green 2 Blue Energy Corp.; BLOK Technologies Inc.; Kootenay Zinc Corp.; Affinor Growers Inc.; Beleave Inc.; Liht Cannabis Corp. (formerly known as Marapharm Ventures Inc.); PreveCeutical Medical Inc.; Speakeasy Cannabis Club Ltd.; and Abattis Bioceuticals Corp.

          https://ceo.ca/@newswire/bcsc-executive-director-alleges-scheme-by-self-described

    Dec 10, 2018 10:38 PM

    Vale doubles down on nickel ahead of EV revolution
    Reuters | 3 days ago

    “The use of nickel in lithium ion batteries will translate into at least 500,000 tonnes of extra demand by 2025, according to Vale, which is planning to play a leading role in meeting the additional need for high-grade metal.”

    http://www.mining.com/web/vale-doubles-nickel-ahead-ev-revolution/

    Dec 10, 2018 10:08 PM

    Is The Gold Bull Market Over?
    Our recent guests on Palisade Radio don’t think so.

    The Palisade Blog – 7th December 2018

    “As we already know, the price of gold is still consolidating within the 1200 range, and because of this the general appetite for precious metals from the average investor is still very low key and skeptical. It is fair to say that gold is still under the radar of most mainstream investors, and even fewer are interested in the beaten up junior gold stocks.”

    “But for us and for some of our most recent guests at Palisade Radio, this spells opportunity.”

    https://ceo.ca/@palisaderadio/the-palisade-blog-7th-december-2018-is-the-gold-bull-market-overour-recent-guests-on-palisade-radio-dont-think-so

      Dec 10, 2018 10:14 PM

      After Seeing ‘The Worst,’ Silver To Reach $18 In 2019 – ABN AMRO

      Anna Golubova – Monday December 10, 2018

      “Silver prices have been beaten up more than we had foreseen,” said the Dutch bank’s senior precious metals and diamond analyst, Georgette Boele. “Year-to-date, silver prices have declined more than 14% and speculators hold extreme short positions.”

      “The metal has disappointed many traders this year due to its stubbornness and inability to rally during risk-off trading sessions.”

      “Some of the major downward drivers have been a stronger U.S. dollar, higher U.S. Treasury yields, Federal Reserve’s monetary policy tightening, uncertainty surrounding the Chinese economy, and lower jewelry demand, Boele pointed out.”

      https://www.kitco.com/news/2018-12-10/After-Seeing-The-Worst-Silver-To-Reach-18-In-2019-ABN-AMRO.html