The mid-tier gold miners’ stocks in the sweet spot for price-appreciation potential have been struggling in recent months, grinding lower with gold. Their strong early-year momentum has been sapped by recent stock-market euphoria. But gold-mining stocks are more important than ever for prudently diversifying portfolios. The mid-tiers’ recently-reported Q1’19 results reveal their fundamentals remain sound and bullish. Full Story
That the stock is worthless has never been an issue for me. The more interesting question regards the ultimate value of the junk bonds, which are currently “priced” in the low $80’s. But this is based on small trades – $1mm-2mm face value crosses and investment advisors at boiler room operations like Wedbush dumping 10 bond lots into client accounts. We used to play this game with ill-fated junk bonds that were artificially priced to high until a big seller capitulated when I traded junk bonds in the 1990’s. More likely the ultimate chapter 7 liquidation value of the unsecured debt on Telsa’s balance sheet is well below 20 cents on the dollar. In other words, short away every time the stock price spikes up on rumors or on desperate attempts by Musk to squeeze the shorts. Full Story
By: Chris Waltzek Ph.D., GoldSeek Radio - 24 May, 2019
- The proprietary algorithm runs 500 Monte Carlo simulations per client over a 70 year period using their utility function. - Dr. Kotlikoff shares his unique perspective on the 2008-2009 Great Recession. - He notes situation was panic fomented by short-sellers who says benefited financially from sharp market price declines. - MAXIFI is a fail-proof financial system, curtailing leverage to nearly zero w/ mutual-fund based investments. Full Story
The FAANGs and a few other ‘lunatic’ stocks favored by institutional buyers have deservedly been getting thrashed, but it looks like the pain is unlikely to abate any time soon. My downside targets in two key stocks, GOOG and AMZN, are well below current levels, implying they will remain a drag on the market. One stock that has been bucking the tide is Microsoft, which is within a three-day rally of all time highs. Full Story
By: Chintan Karnani, Insignia Consultants - 24 May, 2019
I continue to see an inverse correlation between gold and crude oil today. Monday US markets are closed. Look for signs profit booking in short crude oil positions. Silver continues to remain undervalued. Copper is in a neutral zone. There will be investment demand on dips now that gold prices have reversed from the lows. There is no limit to the extent where trade war is headed. If China starts retaliation in a big way the n there will be havoc globally. Gold has to rise. Full Story
Stocks are in wafting mode, indifferent to tariff wars, slumping retail sales and impeachment talk. The broad averages have been racking up impressive gains even when buying interest is weak to nil. It certainly felt that way on Tuesday, when the Dow Industrials rose nearly 200 points on the opening bar, then hovered aloft for the rest of the day. For every tepid buyer it would seem that there is an even more tepid seller. Full Story
By: Chintan Karnani, Insignia Consultants - 22 May, 2019
Momentum for gold and silver is down. However if gold and silver even consolidate till Friday, then buyers and investors will come in. Short term traders as well as short term investors are on the sidelines at the moment. Remember that no one buys in a falling market. Full Story
Tavi Costa, a global macro analyst at Crescat Capital LLC – one of last year’s best performing hedge funds – expects China’s debt woes to spur a rally in gold, reports Bloomberg. 2019 is shaping up to be the biggest so far for defaults in its $13 trillion bond market. In a telephone interview, Costa says that “the one pattern we found is that gold in local currency terms tends to rise significantly as a credit bust develops.” Costa calls its bullish bet on gold the “trade of the century.” Full Story
Tesla has been “done” for awhile but many of the Wall Street and investor “uber” bulls are finally starting to see this reality. Amusingly, Wedbush’s Dan Ives issued a report in which he lowered his price target on Tesla stock from $270 to $235. He refers to Tesla’s situation as a “code red situation.” Quite frankly, a “code red situation” with regard to a company and its stock price should be regarded as, “sell your shares if you’re long and get out of the way.”
On the hourly chart the selloff looks to have reversed an inch from where we’d expected. But I hesitate to declare the target achieved, since the tiny-looking gap was actually $5.45. Given the sinewy delicacy of the pattern itself, we might have anticipated a tradeable bounce from within no more than 15-20 cents of the target. In addition, downside gaps at the red line (p) and the secondary pivot (p2) imply that sellers are not yet spent. Bottom line, I’ll suggest keeping your enthusiasm in check until such time as TSLA exceeds 213.30 — or better yet, closes above that number. It is equal to an ‘external’ peak recorded Friday on the way down, and a move above it would generate a robust impulse leg on the lesser charts. Full Story
Gold and silver dropping back again late last week had investors in the Precious Metals sector feeling despondent, especially as their fears were magnified by at least one analyst calling for gold to drop to the low $900’s or even lower, which is normal when prices sink, but our charts are instead suggesting that gold and silver are close to completing giant bottoming patterns that started to form (in the case of gold) as far back as 2013. We can best see gold’s potential giant base pattern on a 10-year chart. It can be described as a complex Head-and-Shoulders bottom or as a Saucer, and is best considered to be both, or perhaps as a hybrid.. Full Story
As I watched and traded the market action over the last several weeks, I witnessed something quite amazing. Yet, this was not the first time I have seen this.
Each time the market was set up for a smaller change of directional move, a news event or a “tweet” seemed to have come out at almost the exact time we need to see the market change direction. Full Story
No one can predict what this will be — and in fact my own technical works allows for a rally of about 8% in the broad averages regardless of whether the economic/geopolitical picture worsens. In the meantime, bulls thinking about exit shares should be grateful for the distraction of Game of Thrones and the bread-and-circuses revelry that has sustained the mania and grown their wealth. The smart money will be headed shortly into U.S. Treasury paper, and so should you. Full Story
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