Stock Market Nearing New Highs

The market started the week at SPX 2075. After drifting lower on Monday the market declined, aided by a gap down opening, to SPX 2059 on Tuesday. Then the market rallied to SPX 2085 on Wednesday ahead of the FOMC statement. After the statement the market declined to SPX 2063, then rallied to a new uptrend high at SPX 2090 by the close. On Thursday and Friday the rally continued as the SPX hit 2094. Then a late afternoon pullback ended the week at SPX 2079. For the week the SPX/DOW gained 0.15%, the NDX/NAZ gained 0.45%, and the DJ World index lost 0.2%. On the economic front reports continue to be lackluster. On the uptick: Case-Shiller, personal income/spending, the PCE, the Chicago PMI, and GDPn. On the downtick: new/pending home sales, durable goods, consumer confidence/sentiment, Q3 GDP, the WLEI, plus weekly jobless claims rose. Next week’s reports will be highlighted by the monthly Payrolls report, the ISM’s and Auto sales.

Gold And Silver – Month-End Technical Review

A proverbial picture [chart], being worth 1,000 words, we will let the charts speak for themselves, with observations/comments attached to each one.
From our perspective, the charts are saying, irrespective of what anyone is reading or following regarding gold and silver, there appears to be no change in trend for the near term. The state of China’s economy; possible confrontation between China and the US now sending ships to irritate/challenge China’s control over it part of the ocean where she is building new bases; flagging response to the Fed’s ongoing failure of injecting more and more fiat in an already over bloated fiat economy, in fact, world-wide; Russia’s ongoing embarrassment of Washington with Russia’s pinpoint air force accuracy bombing ISIS terrorists, and commensurate challenge of taking control of the Mid East from the flailing Sunni Arab coalition, Western political disarray, etc, etc, etc.

Stock Market Overbought…Action Positive….Pessimism Unwinding

The market has hung in there very well. It has been at or near overbought for quite some time. Thankfully, it’s not severely overbought, but it is overbought nonetheless. It’s staying overbought as the market awaits the big report out on Tuesday morning. The ISM Manufacturing Report. The market is in a hopeful mood it seems. It’s hanging on to hope that the number is over 50.0, or the number that separates recession from growth. If the number comes in below 50 then look out below. If it’s above 50 the market should hang in well, instead of pulling back from 70 RSI readings. The bulls are also decently happy over some of the earnings reports that have come out lately. Some nice, upward surprises have taken place in various areas of the market, allowing for some buying across the board, although there are some real lagging sectors to be sure.

Bearish Reversal in Precious Metals at Resistance…Again

The precious metals sector sharply reversed course after the Federal Reserve hinted that it may raise rates at its next meeting. This about face from the Fed was enough to effectively end the fledgling rally that began in the summer and threatened to take metals and miners higher to their 400-day moving averages. The prevailing thought was the Fed was on hold for a while and this paved the way for more strength in the precious metals complex. Thoughts be damned! The Fed has whipsawed gold bugs (and me) again.

Fed’s US Debt Bomb and Interest Rates

With the Federal Reserve’s first rate-hike cycle in nearly a decade looming, traders are working overtime trying to divine its timing and impact on the markets.  They are closely monitoring the same employment and inflation data the Fed will use to start tightening.  But there’s another little-discussed concern for the Fed, the solvency of the US government.  The Fed’s zero-interest-rate policy has spawned a grave US debt bomb.
Back in late 2008, the US stock markets suffered their first true stock panic since 1907.  This once-in-a-century fear superstorm proved catastrophic.  In a single month leading into October 2008, the flagship S&P 500 stock index plummeted 30.0%.  Over 6/7ths of these losses happened in 2 weeks, a massive 25.9% cratering!  That exceeded the threshold for a stock panic, which is a 20%+ plunge in a couple weeks.

One of America’s Largest Companies is Stockpiling Food and Gold for the Next Financial Crisis

By Justin Spittler One of America’s largest companies is taking a controversial stance on employee benefits. In a move that is sure to draw criticism from the mainstream press, Jonathan Johnson, chairman of online retail giant Overstock.com (OSTK), publicly stated that the company has stockpiled gold and food in preparation of a U.S. financial crisis.

Stock Market Pivot Day

The SPX Premarket is up 2 points as I write. It is no surprise to read that bullish fund flows are back. ZeroHedge writes, “The bullish fund flows are back. This is how Bank of America summarizes the latest EPFR capital flow sentiment: "Loving Wall Street: $15bn equity inflows + $5bn HY/IG inflows + 6 straight weeks of commodity inflows = investors are "risk-on."

Bank of America may be “talking” its book.” The information may be correct, but the conclusion may be flawed.

Silver Prices and Economic Data Releases

Hey guys, stay right there. I am really excited once again to be here. We are live and also we get to continue our discussion that started about a month and half ago about the reality of Silver prices right now. We’re doing a deep dive. Last week we spent time discussing “standard of care” from a fiduciary standpoint. We discussed technical analysis in the previous week and then we started off the deep dive sections with high frequency trading and algorithm trading.
Today’s topic is data releases and price action.

Europe in Deflation: Got (cheap) Milk?

Why falling food prices are not a boon for Europe’s economy
In the early 1990s, two simple words from a genius ad campaign radically transformed the way the U.S. consumer saw it: “Got Milk?”
Suddenly, the narrative changed from an obligatory drink you had to finish as a kid, along with eating your vegetables — into a sexy, funny, and above all desirable treat for all ages.

BEA Reports 3rd Quarter 2015 U.S. GDP Growing at Just 1.49%

In their first estimate of the US GDP for the third quarter of 2015, the Bureau of Economic Analysis (BEA) reported that the economy was growing at a +1.49% annualized rate, down -2.43% from the second quarter.

This report included significant changes in the details as well as the headline. By far the greatest quarter-over-quarter change was in inventories, which subtracted -1.44% from the headline after being essentially neutral during the prior quarter. As we have mentioned before, the BEA’s treatment of inventories can introduce noise and seriously distort the headline number over short terms — which the BEA admits by also publishing a secondary headline that excludes the impact of inventories. This BEA “bottom line” (their “Real Final Sales of Domestic Product”) reported a much more respectable +2.93% growth rate for the third quarter.

The Constitution’s Big Lie

One of the greatest hoaxes ever perpetrated upon Americans at the time of its telling and which is still trumpeted to this very day is the notion that the U.S. Constitution contains within its framework mechanisms which limit its power. The “separation of powers,” where power is distributed among the three branches – legislative, executive, judicial – is supposedly the primary check on the federal government’s aggrandizement.

Financial Markets are a Game

Forget about Market Multiples: Totally Meaningless Sell-Side Crap

Anyone thinking about investing in financial markets should realize that most of the professionals who are on the inside, i.e., have power and access to information and capital to move markets, do not view financial markets as investment vehicles, decisions about P/E ratios, equity multiples, etc. but rather see financial markets as a giant game of making money.

ONS UK Population Immigration Panic, Forecast 10 Million Increase

The ONS is belatedly waking up to Britain’s population explosion by forecasting a 15% rise in the UK population from 64.6 million (mid 2014) to 74.3 million by 2039 (25 years time), approx 70% of which will be due to continuing out of control immigration from predominantly eastern europe as 7 million more economic migrants will seek to jump on board Britain’s benefits gravy train (in work and out of work benefits) that typically can amount to more than X5 those receivable in eastern europe.

FOMC Word Play Kicks Off a Correction That Was Coming Anyway in Gold, May Soon Come in Stocks

What They Said

“In determining whether it will be appropriate to raise the target range at its next meeting, the Committee will assess progress–both realized and expected–toward its objectives of maximum employment and 2 percent inflation. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments.”