Wednesday, May 15, 2019
Our Long-Anticipated Gold Momentum Rally Begins / Commodities / Gold & Silver 2019
Over the past 6+ months, we’ve been covering the price rotations in precious metals very closely. We’ve issued a number of amazing calls regarding Gold and Silver over the past few months. Two of the biggest calls we’ve made were the late 2018 research post that suggested Gold would rally to above $1300, then stall. The other amazing call was our research team’s suggestion that April 21~24 would see Gold setup an Ultimate Base, or what we were calling a “Momentum Base”, near $1250 to $1275.
We issued both of these markets calls many months in advance of these dates/price levels targeting these moves. In both cases, we issued these market calls well over 60 days prior to the move actually taking place. The accuracy of these calls can be attributed to our proprietary price modeling solutions as well as the skill and techniques of our research team. Don’t mind us while we take a few seconds to take credit for some truly amazing precious metals calls over the past 6+ months.
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Wednesday, May 15, 2019
Defense Spending Is Recession Proof - Defense Dividend Stocks / Companies / US Military
We’ve recently got some bad news about Social Security.
A new report says the program will cost more than it takes in by 2020. By 2035, its back-up trust fund will also run dry.
This makes sense: America is greying.
We’re having fewer children, living longer, and wages are growing at a slower pace.
That means there are fewer workers, those workers are making less money, and they’re supporting more retirees.
When Social Security was introduced in 1935, there were 42 workers for every retiree. Today, there are only 2.9.
And that number is set to drop to 1 within the next decade.
Tuesday, May 14, 2019
US China Trade Issues Will Drive Market Trends – PART II / Stock-Markets / Stock Markets 2019
In PART I of this report we talked about and showed you the charts of the Hang Seng and DAX index charts and what is likely to unfold. In today’s report here we touch on the US markets. As we’ve suggested within our earlier research posts this year, US election cycles tend to prompt massive price rotations when the election cycles are intense. For example, the 2000 election of George W. Bush prompted a very mild price rotation in 1999~2000. This was likely because the transition from Clinton to Bush II was not overly contentious. The 2008 election of Barrack Obama was a moderately contested election cycle and happened at the time of the biggest credit market collapse in modern history – thus, the markets were well on their way lower 12+ months before the elections. The 2012 election cycle showed moderate price rotation as it was a highly contested election event in the US. The 2015-16 election event was highly contested as well and the price rotation near this time appears longer and deeper than the 2012 event.
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Tuesday, May 14, 2019
Will the Transitory Inflation Turn into a Tailwind for Gold? / Commodities / Gold & Silver 2019
Chair Powell claims that subdued inflation is caused by transitory factors. Does the recent data confirms his views? And just how transitory is the new tariff rate on $200bn Chinese imports? Will we see a creep higher in inflation about to lift the gold prices?
CPI Edges Up
At the post-FOMC press conference in May, Jerome Powell said that some transitory factors could be responsible for muted inflationary pressure. The latest data seems to support his view that the recent slowdown in inflation was temporary.
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Tuesday, May 14, 2019
The Exter Inverted Pyramid of Global Liquidity Credit risk, Liquidity and Gold / Commodities / Gold & Silver 2019
In a recent edition of Credit Bubble Bulletin, Doug Noland, the long-time critic of contemporary monetary policy, writes about the odd times in which we live from a financial perspective. “Such a precarious time in history,” he laments. “So much crazy talk has drowned out the reasonable. Deficits don’t matter, so why not a trillion or two for infrastructure? Our federal government posted a $691 billion deficit through the first six months of the fiscal year – running 15% above the year-ago level. Yet no amount of supply will ever impact Treasury prices – period. A Federal Reserve governor nominee taking a shot at ‘growth phobiacs’ within the Fed’s ‘temple of secrecy’, while saying growth can easily reach 3 to 4% (5% might be a ‘stretch’). Larry Kudlow saying the Fed might not raise rates again during his lifetime. Little wonder highly speculative global markets have become obsessed with the plausible.”
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Tuesday, May 14, 2019
Can You Afford To Ignore These Two Flawless Gold Slide Indicators? / Commodities / Gold & Silver 2019
We had warned you about the miners’ bluff and we hope that you heeded it. Gold is still testing the neck level of the head-and-shoulders pattern, but silver is already back at its 2019 lows, while miners broke decisively below them. It may seem that the miners have declined enough and that a rebound is imminent from these levels. Should you hold your breath? Are we on a doorstep of a tradable rebound, or it ain’t here just yet?
To answer that, let’s turn to two analytical gems that have served us so well in the past. Not once, but many times.
We would like to point your attention to two factors that confirm that the next move lower is going to be significant. Yes, we know that you already know that as we provided myriads of details beforehand, but looking at the situation from a fresh perspective and seeing new signals makes it easier to be patient before the move gathers real momentum.
The first of them is the analysis of the silver stocks, and the second is the analysis of the popularity of 2 key search phrases for the gold market. Let’s start with the former.
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Tuesday, May 14, 2019
As cryptocurrency wallets become more popular, will cryptocurrencies replace traditional payments? / Currencies / BlockChain
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Tuesday, May 14, 2019
How US Debt Will Reach $40 Trillion by 2025 / Interest-Rates / US Debt
Smart people are worried about out deficit. They should be.Never mind the chaos around the world (like mass shootings, terrorist bombings, Armageddon marches, etc. ad infinitum), it was recently report that Christine Lagarde, the managing director of the IMF, is “doubly concerned” about the level of global debt. She was speaking at the Milken Institute Global Conference last week, where she explained why excessive debt is going to become a serious problem for developed and developing countries alike.
In case you’re wondering – I had to look it up – the Milken Institute is a research driven, non-partisan think tank that develops policy initiatives aimed at increasing economic growth to improve the standard of living for people across the globe.
I assure you. The levels of global and U.S. debt are way beyond concerning. They’re also way beyond being repayable.
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Tuesday, May 14, 2019
Dangers Beyond a Trade War with China / Stock-Markets / Financial Markets 2019
U.S. markets have had a bad week. After reaching all-time highs recently – the Dow at 26,656.39 on April 23 (not quite new high), the S&P 500 at 2,945.83 on April 30, and the Nasdaq at 8,164 on May 3 – they’ve spent the last three days in the red. Monday, the Dow shed as much as 1.8% before pulling back to close only slightly lower. On Tuesday it had bled 1.8% by the close. The Nasdaq dropped 2.2% during trading before clawing some of that back. It ended trading on Tuesday 2% down.In fact, the Dow had its worst day yesterday since January 3.
From the sounds of it, investors are unhappy with The Donald’s China trade deal tweets on Sunday. Really, they could have chosen any issue at hand – there are so many – for a reason to correct, but a correction was due regardless… because a pause is needed before the final blow-off rally in my Dark Window scenario.
Tuesday, May 14, 2019
Breaking Down Today’s Inflation / Economics / Inflation
I recently had dinner with my extended family. Afterwards, my parents mentioned they were surprised at how expensive the meal had been. It was a nice restaurant, but nothing fancy. It worked out to roughly $50 apiece, before tip. As we left, we separately climbed into our newish cars, which all cost more than $40,000. My brother-in-law’s pickup tops out over $50,000.But don’t worry, the government tells us, there’s not much inflation.
We could have chosen a cheaper restaurant, and less expensive cars, which is exactly the point the government tries to make…
The government wants us accustomed to the chained consumer price index (CPI), where prices move higher and we’re chained to a falling standard of living.
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Tuesday, May 14, 2019
eBook - Greatest Tool for Trading? / InvestorEducation / Learn to Trade
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Tuesday, May 14, 2019
Classic Pitfalls for Inexperienced Traders / InvestorEducation / Learn to Trade
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Monday, May 13, 2019
Stock Market S&P 500 Negative Expectations Again / Stock-Markets / Stock Markets 2019
Stocks were gaining on Friday following a lower opening of the trading session and the morning sell-off. The S&P 500 index extended its downtrend before bouncing off and closing 0.4% higher. So was it an upward reversal or just correction within a downtrend?
The U.S. stock market indexes gained 0.1-0.4% on Friday, after bouncing off their new lows as investors’ sentiment improved despite an ongoing trade war. The S&P 500 index retraced the whole of its April’s advance. It currently trades 2.4% below its May the 1st record high of 2,954.13. The Dow Jones Industrial Average gained 0.4% and the Nasdaq Composite gained 0.1% on Friday.
The nearest important resistance level of the S&P 500 index is at 2,890-2,900, marked by the previous support level. The resistance level is also at 2,920. On the other hand, the support level is at 2,860-2,865. The support level is also at around 2,835-2,850, marked by April the 1st daily gap up of 2,836.03-2,848.63.
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Monday, May 13, 2019
Why Rising Living Standard in China Offers Global Hope / Politics / China Economy
China’s 70-Year AnniversaryAs living standard rises in China, its global contribution continues to increase. And that means potential for growth, poverty reduction and prosperity in emerging and developing world - new hope.
When Chairman Mao Zedong proclaimed the founding of the People’s Republic of China (PRC) on October 1, 1949, the Chinese people could finally begin to leave behind a century of colonial humiliation and start building a new life.
What remains so poorly understood is how dire were the conditions on that extraordinary day, seven decades ago. While China had sustained its triumph, Chinese living standard was barely 5 percent relative to the United States.
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Monday, May 13, 2019
Stock Market Anticipated Correction Starts On Cue! / Stock-Markets / Stock Markets 2019
Current Position of the Market
SPX: Long-term trend – Final long-term phase on the way? How much longer, is the question.
Intermediate trend – The anticipated intermediate term correction has started. Can’t tell yet, if it’s a C-wave or something less.
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 discusses the course of longer market trends.
Daily market analysis of the short-term trend is reserved for subscribers. If you would like to sign up for a FREE 4-week trial period of daily comments, please let me know at ajg@cybertrails.com
Monday, May 13, 2019
How Chinese Trade Issues Will Drive Stock Market Trends / Stock-Markets / Stock Markets 2019
It is becoming evident that the US/Chinese trade issues are going to become a point of contention for the markets going forward. We’ve been review as much news as possible in an attempt to build a consensus for the future of the US markets and global markets. As of last week, it appears any potential trade deal with China has reset back to square one. The news we are reading suggests that China wants to reset their commitments with the US, remove all tariffs and wants the US to commit to buying certain levels of Chinese goods in the future. Additionally, China has yet to commit to stopping the IP/Technology theft from US companies – which is a very big contention for the US.
This suggests the past 6+ months of trade talks have completely broken down and that this trade issue will likely become a market driver over the next 12+ months. The global markets had anticipated a deal to be reached by the end of March 2019. At that time, Trump announced that he was extending talks with China without installing any new tariffs. The intent was to show commitment with China to reach a deal at that time – quickly.
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Monday, May 13, 2019
Amazon SCAM Deliveries for Fake Verified Purchaser Reviews "Brushing" / ConsumerWatch / Amazon
We, like an increasing number of people have been on the receiving end of products from Amazon that we NEVER ORDERED! Random low priced stuff without any info of who's sending the item and most of it usually completely useless.
So what's going on?
Is someone you know sending you junk to wind you up? We'll it's likely an Amazon SCAM called 'Brushing'. Where the primary purpose is for the Seller to be able to write a glowing Amazon verified purchaser FAKE review so as to entice Amazon customers to buy.
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Monday, May 13, 2019
Stock Market US China Trade War Panic - Video / Stock-Markets / China US Conflict
Just as the mainstream media had gotten used to the stock market rallying towards new all time highs into the end of April. Suddenly, out of the blue TRADE WAR PANIC hits the markets and apparently is responsible for the ongoing downturn in the US and world general stock market indices. This illustrates the way the mainstream media tends to work where the big news story of the day is used to explain the direction of a market, with the same news usually spinned as an explanation for either when the market goes up or down! And Mays big news story to explain the downswing is the latest saga in the US / China trade war, namely increased tariffs from 10% to 25% to kick on $200 billion of Chinese goods today (Friday 10th May) triggered by China trying to pull a fast one on the US by backtracking on earlier promises, which illustrates that NO ONE can trust what China says, not even the worlds Super Power!
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Sunday, May 12, 2019
US Stock Market Leading Macro Economic Indicators Update / Economics / US Economy
Instead of trying to predict when the economy will deteriorate in the distant future (which countless experts have tried and failed), we simply look for deterioration among the leading indicators. Instead of predicting the next 10 steps, we seek to predict the next 1-2 steps for the economy.
Here’s a brief summary of the leading economic indicators we track
Positive factors
- Labor market
- Corporate profits
- Financial conditions
- Loans
- High yield spreads
- Inflation-adjusted new orders
- Heavy Truck Sales
Negative factors
- Housing
- Yield curve
- Inflation-adjusted retail sales
- Earnings revisions
- Average weekly hours
Sunday, May 12, 2019
US Will Increase Pressure on Hong Kong In An Attempt to Cripple China's Growing Tech Influence / Politics / China US Conflict
Behind the Huawei story, we must not forget there is a wider financial war being waged by America against China and Russia. Stories about China’s banks being short of dollars are incorrect: the shortage is of inward capital flows to support the US Government’s budget deficit. By attracting those global portfolio flows instead, China’s Belt and Road Initiative threatens US Government finances, so the financial war and associated disinformation can be expected to escalate. Hong Kong is likely to be in the firing line, due to its role in providing China with access to international finance.
Hong Kong in Trouble?
Last week, The Wall Street Journal published an article claiming China’s banks are running out of dollars. Clearly, this is untrue. China’s banks can acquire dollars any time they want, either by selling other foreign currencies in the market, or by selling renminbi to the People’s bank. They have their dollar position because they choose to have it, and furthermore all commercial banks use derivatives, which are effectively off-balance sheet exposure. Furthermore, with the US running a substantial trade deficit with China, dollars are flooding in all the time.
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