By: Adam Hamilton, CPA, Zeal Research - 5 April, 2019
The bottom line is gold stocks are still marching higher despite the pall of apathy hanging over them. This upleg that excited traders back in February remains intact, with this sector simply pulling back within its uptrend. That has rebalanced sentiment, bleeding away greed. This basing has left gold stocks ready to rally to new upleg highs again, fueled by better gold prices greatly improving gold-mining fundamentals.
Gold-mining earnings are set to surge quarter-on-quarter due to gold’s own upleg powering higher. It too is on the verge of accelerating again as buyers return. A weaker US dollar and rolling-over stock markets will motivate speculators and investors to buy gold again. And naturally the gold miners’ stocks will really leverage those gains like usual. Especially this time of year in the midst of their strong spring-rally season. Full Story
By: Chintan Karnani, Insignia Consultants - 5 April, 2019
Central banks continue to increase their gold reserves with passing of each day. Short term traders are not investing in gold. Long term traders are looking for bottom formation in gold so that they can invest in gold. This tussle between short term bears and long term bulls has resulted in gold trading in $1280-$1310 wider range. Full Story
You will recall that last Wednesday a warning was posted before the open that gold was about to break sharply lower from a bear Flag, which it did the very next day, so you had a full day of trading to prepare, either by exiting positions, placing stops or purchasing inverse ETFs or Puts, and I was pleased to learn that some of you did just that. As we can see on gold’s latest 8-month chart below, the 3-wave A-B-C pattern is targeting the $1240 - $1250 area. Full Story
On a chart, the cryptocurrency looks like it sat on a Whoopee Cushion. Cosmic rays aside, another plausible explanation is that the imbeciles who bought into the rally simply forgot about myriad factors that have been weighing on bitcoin for the last 16 months, pushing it 75% beneath the December 2017 high of around $20,000. If a score of high-profile embezzlement and theft scandals weren’t enough to ward off thrill-seekers, the recent announcement that the Cboe, the first exchange to list bitcoin futures, plans to kill the contract after June should have slowed the action to a death crawl. Instead, we got enough of an effusion on Tuesday that more speculators could get sucked in over the next few days. Some called the rally an April Fool’s joke. Indeed it was, no matter what its actual cause. Full Story
However, precious metals bulls should not be dissuaded by weakness as a rate cut is likely coming within the next 12 months and probably sooner. The weeks and months ahead could prove to be an especially opportune time to position in advance of the first cut and a confirmed new bull market in gold stocks. Full Story
The timing of Lyft’s IPO last week could not have been better for Wall Street insiders, since they will have an opportunity to unload their shares into a veritable orgy of greed and ignorance. The stock market looks unstoppable at the moment, and it is making Lyft’s $24 billion valuation seem somehow less absurd. Just four months ago, when shares were in the throes of what many of us mistook for a bear market, the prospect of taking Lyft public must have seemed not merely unappealing to its owners but grim. The company had no earnings at a time when investors were diving into defensive stocks. How things have changed! What might have been a march to the gallows now promises to become a wilding spree as investors clamor for profitless unicorns. Who needs earnings in a bull market that will continue forever? Full Story
By: Chintan Karnani, Insignia Consultants - 2 April, 2019
US-China trade deal will only a temporary stop gap fix for global economy. Eurozone wants greater access to China. China will try to balance US and Eurozone as it will never want its large population to be used as a dumping ground. The trade between USA-China and Eurozone-China are not addressing long term key thorny trade issues. American politicians and Eurozone politicians want to use China for their short term political gains. Trade war theme going underground (if any) will only be short term. Gold will zoom to $2000 and more if and when the trade war theme starts to haunt the market once again. Full Story
- In Part I with global financier, Martin Armstrong of Armstrong Economics our guest rejoins the show with commentary. - "Tangible assets will survive," when paper assets evaporate, making collectible items and PMs invaluable. - Martin Armstrong is anticipating an EU banking crisis, a "Perfect Storm" a liquidity crisis looms in emerging markets. With capital controls starting to curb appetites for global debt, investors could face complete chaos by May of 2019. - The sound money crowd could be vindicated at that point, as global investors / institutions scramble for the exit. - However, far too golden lifejackets / lifeboats are available on the deck of the economic SS Titanic. Full Story
Globally, central banks have purchased a whopping 126 tons of gold so far this quarter, the fastest rate since 1971, according to Morgan Stanley. Most of this purchasing has come from China, Russia and Turkey. Russia has been adding to its gold reserves rapidly in an effort to “de-dollarize” and break reliance on the U.S. dollar. Renaissance Capital says that gold buying in Russia has now exceeded its mine supply and the country could soon start to import the metal. Full Story
In fact, I see significant appreciation potential for gold, although not to the celestial heights that some seers — most visibly Jim Sinclair, who has been predicting $50,000 an ounce more or less forever — envision. The chart (inset) shows a logical pathway to $2277, a target that in my estimation would become an odds-on bet to be reached if Comex futures can close for two consecutive months decisively above the $1661 ‘midpoint Hidden Pivot’. They have already tripped a theoretical buy signal to this number at $1354 (the green line), making it no worse than a 50-50 bet to be reached. Full Story
Thanks to Elliott Wave International www.elliottwave.com (EW) we are repeating our thoughts on it for our readers of an interesting market symmetry EW noted in a recent commentary. EW titled it ‘’Two Similar Topping Processes’’. It looks at three tops in our current market 2018-2019 and compares them with three similar tops seen in 1999-2000.
In addition to the fascinating potential topping process we look at gold’s drop this week and we comment on the recent calls by Trump’s economic advisor Larry Kudlow and President Trump himself for the Fed to immediately cut rates by 50 bp. The Fed does not report to the White House so these calls from Kudlow and Trump are unprecedented. The Fed (FOMC) next meets April 30, May 1. We close with a note on the stronger than expected January GDP reported for Canada. Full Story
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