Gold in Fed Interest Rate Hike Cycles

Gold suffered heavy selling in early March leading into the Fed’s latest rate hike.  Speculators frantically dumped gold futures ahead of the Fed’s meeting as implied rate-hike odds soared.  This is nothing new.  This key group of traders has long feared Fed-rate-hike cycles, convinced they are the mortal nemesis of zero-yielding gold.  But this view is highly irrational, as history proves gold actually thrives in rate-hike cycles!
The Federal Reserve’s primary and dominant tool for setting monetary policy is its target for the federal-funds rate.  Commercial banks are required to maintain reserve balances at the Fed, with necessary levels fluctuating daily based on each bank’s underlying business activity.  So banks with surplus reserves can lend them on an overnight basis to other banks running deficits through the federal-funds market.

The Brexit Has Begun: Now What?

Until now, the Brexit had mostly been a succession of public statements, declarations of intent, veiled threats and wishful thinking. But today, the British government made the United Kingdom’s departure from the European Union manifest by officially invoking Article 50 of the EU treaty and delivering formal notification of its departure from the Continental bloc, the first member ever to do so. This started the clock on negotiations over the terms of the divorce and their future relationship, which will leave both the United Kingdom and the European Union considerably changed.

Precious Metals Are in Alignment for a Major Ascent

Precious metals expert Michael Ballanger discusses silver’s recent price performance and why he believes precious metals are in alignment for a major ascent.
“Every stock market bull out there whether in New York or London or Mumbai or Beijing is in a drunken myopia of elevated expectations and deviated denial scrambling and scratching and pleading for assurances that ‘it is truly different this time.'”

The Case for Socialized Medicine

Last week the American political establishment was shaken to its foundation when the Republican Party leadership withdrew the American Health Care Act (AHCA) just before the vote was to be taken on the floor of the House of Representatives. Besides being a most unusual procedure, it exposed a fundamental split in the country,reflected not merely in Congress but within the Republican Party. GOP purists, represented by the House Freedom Caucus, demanded more significant roll backs in socialized medicine that were contained in the Ryan plan. Their refusal to back the plan, after years of promising complete repeal, doomed the bill.

Our Economies Run On Housing Bubbles

We are witnessing the demise of the world’s two largest economic power blocks, the US and EU. Given deteriorating economic conditions on both sides of the Atlantic, which have been playing out for many years but were so far largely kept hidden from view by unprecedented issuance of debt, the demise should come as no surprise.
The debt levels are not just unprecedented, they would until recently have been unimaginable. When the conditions for today’s debt orgasm were first created in the second half of the 20th century, people had yet to wrap their minds around the opportunities and possibilities that were coming on offer. Once they did, they ran with it like so many lemmings.

‘Three Wise Men’ Warn Next Crash Coming, Own Gold

‘Three wise men’ are warning that the next financial crash is coming and that one of the ways to protect and grow wealth in the coming crash will be to own gold.
The men who have recently warned are Jim Rogers (video below), Martin Armstrong (blog below) and Tony Robbins (video below). Each come from somewhat different backgrounds and are respected experts in their respective fields.

USD May Stay Soft in Near Term

Although the Fed is in the rate hike cycle, USD rally started to lose momentum early this year when market started to realize that monetary policy divergence started to narrow. ECB has started to talk about rate hikes, while China started to tighten monetary policy by raising money market rates early last month. The Fed also sounded less hawkish in their last rate hike as they forecasted only three rate hikes this year and no Fed members agreed to hike rate four times.

Stock Market Mixed Expectations As Technology Stocks Reach New Record Highs

Briefly: In our opinion, speculative short positions are favored (with stop-loss at 2,410, and profit target at 2,200, S&P 500 index).
Our intraday outlook is bearish, and our short-term outlook is bearish. Our medium-term outlook remains neutral, following S&P 500 index breakout above last year’s all-time high:
Intraday outlook (next 24 hours): bearish
Short-term outlook (next 1-2 weeks): bearish
Medium-term outlook (next 1-3 months): neutral
Long-term outlook (next year): neutral

Elliott Wave Analysis of APPLE (AAPL)

With a 5 wave looking advance from 138.57, there are now enough gyrations to suggest that wave [v] could be completed, a strong reversal back below 142.00 is needed to support further downside, although if a peak is in place for wave [v], we need to see a strong break back under 138.57 to confirm wave [v] is completed, as a 3 wave pullback that stays above 140.00, likely favors further upside for wave [v], but I am counting the idea as a completed move for wave [v], so a strong reversal under 142.00, then 140.00 is the preferred route.

Did the Stock Market Top for the First Half of 2017 Just Hit?

The top for the first half of 2017 probably just hit.
Markets do not react to what everyone knows. Markets react to surprises. And the surprise today is that the Trump administration will not be able to implement rapid reform.
Since election night, the stock market has assumed that President Trump would somehow repeal Obamacare, reform the tax code, and announce a massive infrastructure project almost immediately.

Stock Market Mixed Session

The stock market indices had a solid session for tech stocks, but not so for biotech’s. The indices were mixed at the closed with the Dow down all day.
Net on the day, the Dow was down 42.18 at 20,659.32. The S&P 500 was up 2.56 at 2361.13, just a couple points off the high and 9 points off the low. The Nasdaq 100 was up 23.06 at 5430.27, 3 points off the high and 25 points off its low.