US Markets Falling, A Flash Crash In Currencies, and Weak ISM Numbers
All the factors mentioned above are pushing down US markets however there are a number of sectors that are performing well. Chris Temple joins me today to share his insights on why China is such an important story for the overall heath of the markets.
Click download link to listen on this device: Download Show
The dollar has a long ways to fall:
http://schrts.co/cimhw6
Matthew, I’m thinking I should’ve bought SLB@35 a couple of days ago. Do you think oil has bottomed? NGD looks to me like it has bottomed.
Bonzo, yes, I think oil has bottomed – and NGD too…
http://schrts.co/BDJosZ
Zoomed-in:
http://schrts.co/F2fQce
Thanks, Matthew. Doc thought oil would drop to 40, but if it has bottomed we will wish we had bought SLB and SU last week. But if trader Vic is right about a bear market coming we may see SLB back@35 or lower in a crash. And silver stocks may do a lot better than oils.
Doc could still be right about oil to $40. The daily chart points to A low but not necessarily THE low. The weekly chart still needs to improve significantly before I can say objectively that $40 is unlikely. A falling dollar should help oil here so there should be at least a decent bounce even if it is going lower.
Silver stocks should do far better than oil stocks.
http://schrts.co/Ed7vxD
I should have said: “The weekly chart still needs to improve significantly before I can say objectively that $40 is out of the question.” Because I do think it is unlikely.
Captainwave agrees with me about a big bounce here but is then looking for a retest of the 2016 low:
http://www.321gold.com/editorials/captainewave/captainewave010319/crude_oil.png
Captainwave’s oil chart is instructional. Think I’ll wait on buying any oils till oil is under $30, as I already have plenty of them with huge capital gains. Think I’d rather buy tobacco stocks yielding over 8% or silver.
I like his silver chart:
http://www.321gold.com/editorials/captainewave/captainewave010319/silver.png
I don’t know if his target will be reached this year but I do think silver will take out the 2016 high before the year is over.
It will be great for the gold miners if he’s right but I doubt it will get there.
Talking about oil in the last comment.
I expect silver will go above 50 in 3 years.
It will end the bull market way beyond $50.
It’s been a long time since we’ve seen a quarterly MACD buy signal and that’s what’s coming…
https://kingworldnews.com/wp-content/uploads/2018/12/KWN-I-12272018.jpg
IPT breakout:
http://schrts.co/7MF9XZ
looks like a pretty nasty reversal candle now.
Someone stepped in and sold it hard (heavy volume today).
The selling started right after hitting .35 — the exercise price of the new warrants. I’ve seen such warrant “resistance” get sold many times. There’s probably some top-calling going on, too.
Note the black candle on the IPT weekly chart from a coupe of weeks ago. A close below .29 this week will clear it out, and it will have a clean looking chart on both the daily and weekly charts off the low.
AXU has a black candle on the weekly chart from a few weeks ago too. It hasn’t left behind a black candle since the 2016 low. I’m hoping this time is different, but I’ll bet it closes below .79 at some point in the next few months. I’m not selling, but that candle is disappointing after such a thrashing.
I’m glad to see so much demand at almost 50% above the late November low. Today’s VWAP with 921,000 traded, is .29 and change…
http://schrts.co/Z67rSu
Not a fan of the black candles in this sector as you know. Call it paranoia or whatever. I would be a buyer on any weakness in IPT from here, even today.
If anyone is wondering, I sold less than one-sixth of 1% of my position at .3175 this morning.
That was for rebalancing purposes.
GDXJ double bottom:
http://schrts.co/hdRRR9
The truth is coming out:
https://www.youtube.com/watch?v=Yddkk_pX7Rk
CFS:
I was going to watch the video and in the first minute the host is referencing his appearance on Fox News. I didn’t have to go any further. What part of the FOX news agenda don’t you get?
Just think shiny object and monkey.
The analogy I’ll use is that of my Doctor. I don’t believe in Physical therapy, but I’m going to send you anyway.
Xi has come out and stated that Taiwan must be re-united with China. This I don’t think can be ignored. During the 08 fiasco I learned that when China catches a colds everybody gets sick. This just lends more credence to the statement that Markets and Politics aren’t connected and need to be viewed as such.
I agree that Taiwan should be part of China, just as soon as the Marxist tyrants are overthrown in Red China and truly free elections are held.
The miners can add significantly to their gains before having a meaningful pullback. The RSI(14) for GDX is not close to overbought:
http://schrts.co/oAjaKj