Tuesday, December 22, 2015
Stock Market Headed Higher because more Americans drink Coffee than own Stocks / Stock-Markets / Stock Markets 2015
More Americans drink coffee than invest in the markets and yet many of these individuals are stunned that the market is going higher when good jobs are not as easy to find, rents and cost of everyday necessities keep rising. 61% of Americans drink coffee on a daily basis compared to the only 48% that invest in the markets. These stunning facts were published in a recent article; the article states that if the $1200 that the average American spends on coffee were invested in the market in 2009, it would have grown to $3600.
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Monday, December 21, 2015
Silver: May the 100 Year Force Be With You / Commodities / Gold and Silver 2015
What force? Some of the “forces” in our world that are supportive of higher silver prices are:
- Debt Increases: Global debt exceeds $200 Trillion and rising rapidly.
- Warfare: Syria, Turkey, Russia, Ukraine, South China Sea, Chicago and others. It is a long list.
- Welfare: Bank bailouts, military contractors, Medicaid, food stamps, dozens of “programs” and so much more.
- Central bank “money printing:” Bank of Japan, European Central Bank, the Federal Reserve, Bank of England and others are doing what they do best – devaluing their currencies. The bubbles created in the bond, stock, and currency markets must be fed and supported.
Monday, December 21, 2015
Gold Price Double Bottom and Bitcoin - Video / Commodities / Gold and Silver 2015
Transcript excerpt:
December 21st 2015 I'll be talking today about a prop probable or possible double
bottom in the price of gold and also about Bitcoin which is doing it been
doing quite well recently where trading around 4:40 right now we are down twenty
one dollars from from the highs 468 earlier you know earlier in the day
gold is trading at 1068 we we did get up to a thousand 74 earlier in London it's
right now almost 1 p.m. London time almost 8 a.m. Eastern Standard Time New
York so the possible double bottom in gold is between it looks like reform
that you know I double bottom 2047 which was the law on the 3rd of December and
roughly the same low on the 17th of December with that in mind I've looked
at the high on the 4th of December which is a thousand and 89 and that will be
Monday, December 21, 2015
When Gold Comes Back Into Favor? / Commodities / Gold and Silver 2015
Sasafuturestrading writes: Stocks usually change direction before commodities.
There is one market that really shines when stocks and the dollar are in bear markets together, and that market is gold.
In other words, a climate of falling stock prices, a falling U.S. dollar, and historically low interest rates don’t leave investors with a lot of investment alternatives. This is the exact type of intermarket climate that drives money to gold.
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Monday, December 21, 2015
Beware of Central Bank Success / Interest-Rates / Central Banks
The most important question investors will soon have to face is: "what's going to happen once central banks finally meet their inflation targets?"
For example, let's assume after years of monetizing government debt, bidding up equity prices, and forcing debt on the public by keeping borrowing costs at or below zero; that the ECB is finally able to achieve its inflation target rate of 2%. This would only occur once money supply growth becomes both robust and sustainable. It is silly to believe ECB President Mario Draghi can bring inflation to just 2% and nail it at that level. Inflation will continue to rise past 2% until the ECB raises interest rates by reducing its pace of bond buying. So, we will have the environment where inflation is rising north of 2% and the central bank will be forced to start cutting back its purchases of debt and preparing the market for eventual outright sales.
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Monday, December 21, 2015
Stock Market Positive Expectations Following Last Week's Sell-off, But Will It Last? / Stock-Markets / Stock Markets 2015
Briefly: In our opinion, no speculative positions are justified.
Our intraday outlook is now neutral, and our short-term outlook is neutral:
Intraday outlook (next 24 hours): neutral
Short-term outlook (next 1-2 weeks): neutral
Medium-term outlook (next 1-3 months): bearish
Long-term outlook (next year): bullish
Monday, December 21, 2015
UK Savings Interst Rates Recap of 2015 / Personal_Finance / Savings Accounts
This year we have seen new brands enter the savings market and Government proposals to encourage people to save, either towards their first home, or to secure a higher return of interest during retirement.
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Monday, December 21, 2015
Yellen has Lift Off, But Rates Won’t Go To The Moon / Interest-Rates / US Interest Rates
At the FOMC meeting last week the Fed raised interest rates for the first time since 2006. This was a historic moment marks the first rate hike after the Fed engaged in massive quantitative easing programs to combat the Global Financial Crisis and the Great Recession. However, we are not economists or economic historians. We run a trading service and are therefore concerned with where the markets will go next. This means that our key point of analysis is around where rates will go next, rather than what they did last week.
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Monday, December 21, 2015
Ron Paul - Do We Need the Fed? / Interest-Rates / US Federal Reserve Bank
Stocks rose Wednesday following the Federal Reserve's announcement of the first interest rate increase since 2006. However, stocks fell just two days later. One reason the positive reaction to the Fed's announcement did not last long is that the Fed seems to lack confidence in the economy and is unsure what policies it should adopt in the future.
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Monday, December 21, 2015
U.S. Silver Production Plunges by 20% / Commodities / Gold and Silver 2015
To view The U.S. Geological Survey (USGS) released their September silver production numbers this week and the results were incredible. Only 82.6 metric tons (mt) of silver were produced domestically in September versus 103 tons during September of last year. This represents a massive decline of 20% and is part of a greater trend of declining silver supply.
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Monday, December 21, 2015
Euro Rally Likely to Reverse / Currencies / Euro
As we move into the end of this year, we have seen some surprising moves in the currency markets that have likely taken many traders by surprise. Perhaps the best example here is the shorter-term rally in the EUR/USD, which has quickly risen to near important psychological levels at 1.10. This commonly traded pair has spent most of its recent activity roughly 5 big-figures below this area, so the it is difficult to argue against the fact that these moves have been substantial.
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Monday, December 21, 2015
Stock Market's Wild Swings May Continue into the New Year / Stock-Markets / Stock Markets 2015
I just need to start off saying that due to the Holidays, this update will not include charts. Happy Holidays to everyone!
Two weeks ago, I had been expecting a stock market low around the New Moon at the Sagittarius/Capricorn cusp due December 14th when the Sun squares Jupiter near the Bradley turn of December 11. I also was expecting a rally into mid week and then possible further weakness into week's end, which we got. We are now falling into the moon at the Aries/Taurus cusp, which often times is a market low when the stock market falls through the moon at the Sagittarius- Capricorn cusp. We are also at a Bradley turn when Mercury squares Uranus (which turns stationary direct Christmas Day on the full moon).
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Monday, December 21, 2015
Silver Price Stuck in a Grim Downtrend / Commodities / Gold and Silver 2015
Silver has been somewhat weaker than gold in the recent past and dropped to clear new lows last Monday, as we can see on its 6-month chart below, but this should not come as a surprise as its recent COT structure has been nowhere near as positive as gold's, and at the end of a bearmarket or beginning of a bullmarket, gold outperforms silver.
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Monday, December 21, 2015
Gold Price Suspected Bullish Falling Wedge Pattern / Commodities / Gold and Silver 2015
Gold's technical picture is actually little changed from the last update posted on the 6th, apart from its having made marginal new lows late last week. What has changed is that we have since seen the Fed raise interest rates for the first time in many years, and the Junk Bond market has started to seriously fall apart.
With respect to the rise in interest rates there are two points to be made. The first is that, contrary to the general belief that gold is less attractive in an environment of rising rates because it doesn't pay interest, it actually does well, because some of the money that floods out of the stockmarket flows into gold. Second, the Fed's diminutive rate rise was a hollow face-saving measure, intended to salvage some credibility after it had been "crying wolf" for so long. It is too little and far too late.
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Monday, December 21, 2015
The Recession And Bear Market Of 2016, In Two Charts / Economics / Recession 2016
Good friend Michael Pollaro just sent a couple of charts that show the US economy heading for a brick wall. The first illustrates what happens when business sales (the green line) turn negative. In the previous two boom/bust cycles, when sales started falling the economy either tipped into recession shortly thereafter or (it was discovered in retrospect) was already well into a contraction.
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Sunday, December 20, 2015
Why Gold Price is going down, in Two Words: IT's NOT ! / Commodities / Gold and Silver 2015
So as ephemeral as anything is to “prove” by math, we can observe and draw the following conclusion, that REAL METAL GOLD is priced far differently than PAPER CONTRACTS settled in Dollars. Having not “proved” this but empirical observations to illustrate and support this enduring phenomena, we conclude that: “Currencies fluctuate, at different rates against MANDATORY DELIVERIES of METAL GOLD vs. PAYMENT in any given currency.”
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Sunday, December 20, 2015
Stock Market Failed Rally / Stock-Markets / Stock Markets 2015
Current Position of the Market
SPX: Long-term trend – Still Bull Market?
SPX: Intermediate trend – The index appears to have made a secondary top at the 2104 level and to have started another decline of intermediate duration.
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, December 20, 2015
U.S. Interest Rates Yield Curve Flattening Further, Why it Matters / Interest-Rates / US Interest Rates
I am becoming increasingly concerned over the flattening yield curve. This curve enables us to get a first hand view of sentiment towards economic growth among bond investors and other large players in the interest rate markets, some of whom are among the most sophisticated observers of the financial scene anywhere.
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Sunday, December 20, 2015
Fed Might Have Nailed End of Cyclical Stocks Bull Market, Beginning of Next US Recession / Stock-Markets / Stocks Bear Market
On April 5, 2015 I suggested that One of the Longest Cyclical Bull Market In US Stocks May be Coming to an End with an update on August 16, 2015. Now, it seems that Janet Yellen has nailed the end of the cyclical bull market with her telegraphing the specific date for change in policy and then acting on it. Fed Vice Chairman Stanley Fisher's statement, few months ago, that the Fed is data dependent and not date dependent (emphasis in his voice) was part of Fed propaganda to cover up the real reasons behind the change in policy. If the cyclical bull market were coming to an end, as Yellen has concluded, and the bear market is to begin in early 2016 the recession would follow. As one can see in Fig. 1, S&P 500 is where it was approximately 16 months ago and the market has been struggling.
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Sunday, December 20, 2015
John Kerry’s Moscow Lovefest / Politics / GeoPolitics
If John Kerry doesn’t win an Oscar for his performance in Moscow on Tuesday, then there’s something very wrong with the system.
From the time he touched down at Moscow’s Vnukovo Airport, to the time he left some 26 hours later, the Secretary of State was as cordial and conciliatory as anytime in recent memory. There was no hectoring, no lecturing, no threats of additional sanctions and no finger-wagging condescension, just pleasant give-and-take on the main issues followed by friendly chit-chat, multiple handshakes, and plenty of smiley photo ops. To say his hosts were surprised by Kerry’s behavior is a probably an understatement. After nearly three years of nonstop belligerence and confrontation, the last thing Sergei Lavrov and Vladimir Putin expected was an ingratiating Kerry oozing brotherly love and carrying on like an old buddy from college.
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