Monday, July 11, 2016
ECB and BOJ Now Trapped in Endless Counterfeiting / Interest-Rates / Quantitative Easing
The Fed was able to end its massive $3.7 trillion series of Quantitative Easing campaigns without the stock market and economy falling apart. The end of QE 3, in October of 2014, did cause temporary turmoil in the major averages; but all in all, it did not lead to a protracted market decline, nor did it immediately send the economy into a recession.
The consensus view then became that the Fed’s strategy of unprecedented interest rate and monetary manipulations was a huge success, and it would be able to slowly raise the Fed Funds rate with impunity.
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Monday, July 11, 2016
Fool's Errand: NATO Pledges Four More Years of War in Afghanistan / Politics / Afghanistan
The longest war in US history just got even longer. As NATO wrapped up its 2016 Warsaw Summit, the organization agreed to continue funding Afghan security forces through the year 2020. Of course with all that funding comes US and NATO troops, and thousands of contractors, trainers, and more.
President Obama said last week that the US must keep 3,000 more troops than planned in Afghanistan. The real reason is obvious: the mission has failed and Washington cannot bear to admit it. But Obama didn't put it that way. He said:
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Monday, July 11, 2016
UK Savings Market Review / Personal_Finance / Savings Accounts
As far as the savings market was concerned, the first half of 2016 was a total wipe-out. In fact, research from Moneyfacts.co.uk shows that, since the start of the year, savers have witnessed a vast number of rate cuts, which have caused rates to plummet to new lows. For example, the average five-year fixed rate has fallen by a whopping 0.63% since January this year.
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Monday, July 11, 2016
Repeat Of 70s Pattern Shows That Silver $675 Price Is Realistic / Commodities / Gold and Silver 2016
In my previous silver article, I highlighted a very bullish pattern/fractal on the 100-year silver chart. It was a very big picture view of silver, which is really difficult to perceive within our current reality. However, at some point in time, it will catch up with our current reality. This will likely happen when the monetary system collapses.
Silver, even more than gold, is the opposite of what is considered a monetary asset (debt, like a federal reserve note), today. This is mainly because silver has been completely demonetized, whereas gold is still a part of the current system (think central banks gold reserves). When the illusion of money (value) is exposed for what it is (worthless paper or digits), then people will demand real money (value) like silver and gold.
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Monday, July 11, 2016
Stocks VIX & SP500 Comparison of 2008 Market Top / Stock-Markets / Stock Markets 2016
Today I like to share my thoughts about the S&P 500 index, the volatility index, and what I believe will be the trigger/event which sends stock markets around the world to new multi-year lows.
While the charts shown here are very simple there is a lot of information behind the scenes that backup the analysis/predictions on the charts below.
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Monday, July 11, 2016
Stock Market VIX Strategy, Maximum Profits $ / Stock-Markets / Stock Index Trading
Proshares UVXY 2x ETF
Everyone wants to find ways to maximize profits and minimize losses. That's part of the game in trading the market. I would consider this an extremely high risk/high reward trade.
Monday, July 11, 2016
Silver COT update / Commodities / Gold and Silver 2016
This one will be brief…
Let’s stat with the overall NET POSITIONS chart:
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Monday, July 11, 2016
Stock Market Challenging the High / Stock-Markets / Stock Markets 2016
Current Position of the Market
SPX Long-term trend: The long-term trend is near its all-time high
SPX Intermediate trend: The uptrend from 1810 is now challenging the 2135 high.
Analysis of the short-term trend is done on a daily basis with the help of hourly charts. It is an important adjunct to the analysis of daily and weekly charts which discuss longer market trends.
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Sunday, July 10, 2016
Gold and US Dollar Trend Forecasts / Commodities / Gold and Silver 2016
While I’m expecting some kind of pullback at the $1390-$1400 level, I don’t think gold’s intermediate cycle will top until at least retracing the 50% Fibonacci level and probably back to $1550 by September. This will almost certainly be driven by an aggressive moved down in the US Dollar as it really starts to accelerate into the next 3 year cycle low due sometime net summer or fall.
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Sunday, July 10, 2016
The Big Silver Long - What Gives? / Commodities / Gold and Silver 2016
As Chris Powell of GATA made famous: "Price action makes market commentary".
Control the price of anything and you get control of the story. The U.S. Commodities Future Exchange (COMEX), a subsidiary of the Chicago Mercantile Exchange (CME), is central to price discovery – and nothing else can compete.
Price action on the big silver ETF, SLV does not (yet!) factor into a price that begins and ends with a trading structure that is rigged to the tune of a few traders who dominate one side of the trade.
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Sunday, July 10, 2016
Japanese Stock Market Nikkei and Yen Preparing to Reverse Trends / Stock-Markets / Japanese Stock Market
On Friday the Yen hit our long term target of par (100).
A declining C wave should begin shortly to resume its bear market.
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Sunday, July 10, 2016
Silver Prices - The Rise and Fall of the Specs With No Clothes / Commodities / Gold and Silver 2016
The mainstream financial media, as well as some retail investors, have awakened to the surge in the price of silver, relative to just about everything else in 2016.
And while this rally feels different, are we there yet? Or are we close to the point where COMEX doesn't matter as far as price discovery is concerned?
I realize the question always comes down to if not now, then when? But “how?” is a close second.
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Sunday, July 10, 2016
2007 All Over Again, Part 5: Banking Crisis Imminent / Stock-Markets / Credit Crisis 2016
Our good friend Michael Pollaro just sent a chart from the St. Louis Fed that shows the US drifting back into yet another banking crisis.
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Sunday, July 10, 2016
Stock Market - INFLATION – DEFLATION / Stock-Markets / Stock Markets 2016
I listened to the debate between Rick Ackerman and Mike Shedlock on the Kereport today and I wanted to comment on the inflation side. We have a perfect example of two analysts locked into the deflationary crash scenario by what happened in 2009. Both are deflationists and both have been wrong all year long, and basically wrong since the bottom in 2009.
I’ll say it again: In a purely fiat system there is no level of debt that can’t be inflated away. We proved that in the 70’s when we inflated away the Vietnam war debt.
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Saturday, July 09, 2016
The Chartology of a Generational Gold and Silver Miners Move / Commodities / Gold and Silver Stocks 2016
This first chart for tonight is the GOLD:XAU ratio combo chart we’ve been following very closely. I just want to make it perfectly clear what this ratio chart is telling us. The ratio chart on top is telling us that gold is in a parabolic collapse vs the XAU after 20 years of out performance. Even though they can both go up together the XAU stocks are going up parabolic to gold as shown by the vertical move down in the ratio and the vertical move up in the XAU.
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Saturday, July 09, 2016
China Part 2: Path To Regaining Face, Reclaiming Middle Kingdom Status / Politics / China
Potential War as Agent of Change
Geopolitics in the late 1960s and early 1970s were dominated by considerations of the Cold War. The Soviet Union and The Peoples Republic of China were staunchly communist in their conviction and actions. The United States understood that these two powers when united represented a formidable enemy. Utilizing a brief period of policy difference between Russia and China, President Nixon sought an opportunity to split the interests of these two communist countries, and managed in secret to arrange a meeting with Mao Zedong in 1972, which ultimately led to China’s leaning to the West. , That action was purely based on geopolitical considerations, and no design or underlying concept of trade between the two countries was evident at that time.
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Saturday, July 09, 2016
China’s Long March To Saving Face. Part 1 / Politics / China
It was a little over 800 years ago when the Venetian Marco Polo returned from China to reveal and author his wondrous travel experiences. At that time, the North American continent was still undiscovered. Principalities, nations or even empires could grow in one part of the world without much awareness of it elsewhere. Thus it was that China grew, developed and expanded for over four thousand years largely isolated from the Western World.
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Saturday, July 09, 2016
Monsanto, Bayer, and the Push for Corporate Cannabis / Companies / Cannabis
As detailed in my recent article “The War on Weed is Winding Down,” the health benefits of cannabis are now well established. It is a cheap, natural alternative effective for a broad range of conditions, and the non-psychoactive form known as hemp has thousands of industrial uses. At one time, cannabis was one of the world’s most important crops. There have been no recorded deaths from cannabis overdose in the US, compared to about 30,000 deaths annually from alcohol abuse (not counting auto accidents), and 100,000 deaths annually from prescription drugs taken as directed. Yet cannabis remains a Schedule I controlled substance (“a deadly dangerous drug with no medical use and high potential for abuse”), illegal to be sold or grown in the US.
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Saturday, July 09, 2016
10-Year Treasury Bond At All-Time Low...Explains Stocks Bull Market... / Interest-Rates / US Bonds
We have been going nowhere for a couple of years. Within that process the emotions of all traders were tested over and over. Many times it appeared that the market was about to break down. Action was terrible on price and their oscillators, and that bad action was accompanied by poor economic reports. One after another, they came in poorly. Just when all hope seemed lost for the bulls they'd pull some magic trick, also known as fed-magic dust. A QE program here. A bail out there. Low rates forever everywhere kept the markets from breaking down. It was good to be the fed. You needed a bull to keep the economy going through those 401K reports. It didn't always work though because the market couldn't break out.
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Saturday, July 09, 2016
Jason Zweig: Still Wrong on Gold / Commodities / Gold and Silver 2016
Jason Zweig, who a year ago called Gold a “pet rock” is doubling down. He reiterates his belief, albeit a misguided one that Gold is a pet rock and justifies it with the usual anti gold bug propaganda. Unfortunately, Zweig along with many gold-bashers and ironically some gold bugs continue to either neglect Gold’s major fundamental driver or have no clue about it.
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