• 1 day The Shroom Boom Is Here To Stay
  • 2 days Biden Will Be A Boon For Solar Stocks
  • 4 days The Gold Rally Has Finally Run Out Of Steam
  • 4 days Citibank Analyst Predicts $300k Bitcoin By End Of 2021
  • 7 days Bitcoin Lives Up To Its Safe Haven Status In A Big Way
  • 7 days 14 Million People Will Lose Unemployment Benefits On December 31st
  • 9 days Why 12 Million American Millionaires Isn’t Good News
  • 10 days Big Oil Is Paying The Price For Investing In Renewables
  • 11 days The Banking Industry’s $35 Billion Gravy Train Could Disappear
  • 12 days Did Amazon Just Democratize Prescription Drugs?
  • 13 days The Private Space Race Just Got Very Real
  • 15 days Short Sellers Are Willing Big In This Turbulent Market
  • 16 days SpaceX Gets Go-Ahead To Send Humans Into Space
  • 17 days Saudi Arabia Lost $27 Billion In Oil Crash
  • 18 days China’s Big Tech Takes A Hit As Regulators Crack Down
  • 19 days Black Friday Could Be Retailers’ Only Hope
  • 20 days Why You Should Not Dump Your Stay At Home Stocks Just Yet
  • 21 days The Real Reason Why Uber And Lyft Stocks Have Soared Nearly 50%
  • 23 days Bitcoin Heads Towards $16,000 And No One’s Cashing In
  • 24 days Elon Musk’s $250 Tesla Tequila Is Already Sold Out
How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

  1. Home
  2. Markets
  3. Other

There's a Policymaker Born Every Minute

The following is part of Pivotal Events that was published for our subscribers September 17, 2015.



Commodities

As mentioned above, crude and copper were likely to enjoy some seasonal firming into mid-September. Crude's panic low was 37.75 and it jumped to 48.42 on the first of the month. It checked back to 44 and now it's at 47.50. The Daily RSI has gone from very oversold to somewhat overbought. The swing in momentum suggests the rise could soon get tired.

Also, there is considerable resistance at the 50 level.

For copper, the rise has been from 2.21 to 2.48 and the momentum is not as robust as for crude. There is resistance at the 2.50 level.

Both copper and crude have been tracking seasonal swings rather well. On this, the next lows would be late-November for copper and late-December for crude oil.

Grains (GKX) sold off to 273 on September 7th. The rebound made it to 291 on Tuesday. That is right to the 50-Day ma that turned back the rally to 298 in August. Wheat can set a seasonal high in August (tick) and then lows in October and November.

The outlook for most commodities remains melancholy.


Precious Metals

Yesterday's pop in gold seems sympathetic to the rallies in crude oil and other commodities. This move has been seasonal into mid-September and the firmer commodities could rollover next week.

Gold's rally from 1072 in late July to 1170 on August 24th was appropriate. In a financial storm, it was a true flight to liquidity. There will be more need of gold's unique liquidity. Today's ChartWorks considers that the target for gold is 1145 to 1185.

Essentially, gold stocks rallied with the storm. HUI moved from 105 in early August to 133 on August 22nd. Last week, it set a new low at 101. It is now at 110.

Our basis for re-entry is to have stability in gold shares relative to the bullion price.

HUI/Gold index reached new lows at 91.4 last week. However, it has been trading around 95 and if it can hold for a few weeks it would be constructive. But the overall technical picture is not positive enough to begin accumulation.

PT Barnum in the 21st Century


Link to September 18, 2015 Bob Hoye interview on TalkDigitalNetwork.com: http://talkdigitalnetwork.com/2015/09/bank-of-england-wants-negative-interest-rates-ban-cash/

Listen to the Bob Hoye Podcast every Friday afternoon at TalkDigitalNetwork.com

 

Back to homepage

Leave a comment

Leave a comment