The Grand Vision which President Trump had, yes had, for America was finished before it even got started. Asia, India, and Russia are the future. We in the West have destroyed ourselves. President Reagan spoke of the “Morning in America”. President Trump wanted to make us believe we can recapture that. But his dream will never become reality. We still have the massive debt load at all levels, the derivatives, the size of the government and its spending/taxing, the looming 35 year bond bear market (my shorter term bullishness on bonds aside), the entrenched beneficiaries of the spending, and the end of the love affair with central banking. Donald Trump has zero chance of changing the situation. It’s Last Call in America.
Trader Scott has been involved with markets for over twenty years. Initially he was an individual floor trader and member of the Midwest Stock Exchange, which then led to a much better opportunity at the Chicago Board Options Exchange. By his early 30’s, he had become very successful in markets, but a health situation caused him to back away from the grind of being a full time floor trader. During this time away from markets, Scott was completely focused on educating himself about true overall health and natural healing which remains a passion to this day. Scott returned to markets over fifteen years ago where he continues as an independent trader.
As long as the Dow is hitting record highs, everything is awesome. What happens in reverse, even a perfectly “normal” 20% “correction” in a bull market. At 10% people will be downing prozac.
President Carrot Top should not have been so incompetent to brag about “his” bull market. He’s the exact same guy in August who said stocks were in a bubble.
Ambassador, Bhadrakumar, a retired India diplomat, a few days ago wrote a column to suggest that the ongoing fight between Mr. Trump and his detractors is actually good for world peace. It is a sad but true and well-supported conclusion. You can read his column by clicking the link below:
Comparison of the net long positions of large speculators on Treasury, Gold and Silver before and after the rate hike: Speculators continue to reduce silver net long and treasury net short position while increase gold net long position.
The spreading of gold position starts to increase again, suggesting that the speculators are not quite sure of the direction of gold movement. It appears consistent with the small oscillations of the price miners last week.
Apparently the hedge funds are starting to agree with my bullishness on Treasuries. And I see that about silver, it’s helpful. But the rally the last few days will get us right back to where we were. And Andrew Maguire coming out with his “Comex default” crap on Friday is quite concerning. I’m not buying PMs here, but gold itself is setting up for an excellent second half.
The Kitco Gold Index has one purpose, that is to determine whether the value of gold is actual, a reflection of changes in the US Dollar value, or a combination of both.
The U.S. Dollar Index® represents the value of the US Dollar in terms of a basket of six major foreign currencies: Euro (57.6%), Japanese Yen (13.6%), UK Pound (11.9%), Canadian Dollar (9.1%), Swedish Krona (4.2%) and Swiss Franc (3.6%). It is an exchange traded (FINEX) index and has become a standard used worldwide.
The Kitco Gold Index is the price of gold measured not in terms of US Dollars, but rather in terms of the same weighted basket of currencies that determine the US Dollar Index®.
Since the Kitco Gold Index has no US Dollar component it needs to be compared to the actual US Dollar price to give it some perspective. In all of the historical and live charts that we are displaying here we’re showing both trend lines for the purposes of making this comparison. Here are a few possible situations that you may see and what the meaning could be:
The Kitco Gold Index is up and the USD price of gold is up even more: This would definitely mean that gold has increased in value. It also means that the USD has weakened and so the degree of the gold value increase will be exaggerated when examined strictly in terms of the US Dollar.
In the present case, the price of gold increase by 0.28% in a basket of foreign currencies. And the difference between 0.76% and 0.28% is due the weakness of dollar.
If S&P 500 orderly retreats by 10% in next 2-3 weeks (in a way similar to that in late October and early November of 2016), what you think gold, miners and dollar will likely react ?
That is the concern, more like in December 2015, when gold was strong, and the stock market was in a serious correction mode. Gold stocks/commodity stocks bottomed before the S&P. But the $ was peaking then. So that then becomes an issue this week with a probability of a $ bottoming taking hold.
Euphoria Brexit and the election of President Trump was a turning point in world history- In both cases victory was confusing to the elitists and Central Banks in America and Europe. This turn of events speaks volumes about current day politicians who are only feathering their own nests. Their crazy policies of running up huge volumes of debt and at the same time producing a generation of debt junkies. Why is society like it is today? Answer; Incompetence by Central Banks and Governments For this reason populism has come to the front around the globe. Donald Trump is part of that populism and he may have grand ideas ‘America First’ but when you live in a democratic society his ideas must be shared and voted on by all elected persons that serve government. His ideas maybe good in some instances, however, two things will kill those notions; Firstly entrenched establishment will block his ideas simply out a ‘we will teach you a lesson’. And secondly Mr Trump’s business plan for his future spending programmes is simple arithmetic i.e. what do I need to spend in a productive manner and what is my income in order to reduce my deficit in the future. The right answer will produce the happiness that America and Europe yearn for? Good Luck with your business plan Mr. Trump. Mr Micawber’s famous, and oft-quoted, recipe for happiness: “Annual income twenty pounds, annual expenditure nineteen [pounds] nineteen [shillings] and six [pence], result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.”
Any proposal well thought through takes time (In Mr Trump’s case 9 months) therefore I cannot believe how euphoric the Wall Street Casino players have acted on pure rhetoric alone to send the markets into the stratosphere. Once the wind is taken out of the almighty dollar you can kiss good-bye to the dollar standard plus the Dow/FT and watch for the hedge/pension fund movements into precious metals. I am long on precious metals and believe it is a ‘no brainer’. Regards Michael Harvey Resident in Ireland
PMs are certainly bullish (long term), I wish there were a sure thing market-wise, but what is certain is Trump will run up the debt just like the rest of them. No one in “leadership” is even pondering what this world will look like with even a 6% long Treasury (around 3% currently). Let alone a 10% Treasury.
I, for one, am giving this guy a chanced. I mean, what else is there to do. You can bitch and moan all you want but the bottom line : it is what it is. He inherited what we have. Period. He can try to default on the debt, Then what? He can keep feeding the pigs at the teat. Then what? He can try reforming taxes, reforming healthcare, reforming his flippin hairdo! Then what? No matter what he does he’s got clowns to the left of him and jokers to the right just waiting to say, “See, I told you so! Boofreakinhoo!! he sucks!!”
So you know what he’s going to do? He’s going to do what he thinks he should do. Don’t believe me, read his freakin books! That he got this far is a miracle in itself.
“The cheek of every American must tingle with shame as he reads the silly flat dish watery utterances of a man who has to be pointed out to intelligent foreigners as the President of the United States.” quote from the Chicago Times following Abraham Lincoln’s Gettysburg speech.
“I went to the White House shortly after tea where I found ‘the original gorilla,’ about as intelligent as ever. What a specimen to be at the head of our affairs”. This was spoken about Lincoln by General George McClellan.
Any of this sound familiar. Things may be written in stone concerning the dollar, the economy, etc. but I believe that Lincoln wouldn’t have succeeded if he didn’t have the people he had behind him. And if you hate Trump because he beat HRC, get another box of kleenex, get the hell out of the way and get the hell over it will ya! It’s getting tired!!
Agreed Scott. I for one can picture that one day Trump, if he hasn’t already, will be sitting there with that look on his face that William Wallace had in the movie “Braveheart” when he realized, while sitting on his arse in the field after getting the crap kicked out of him, that Robert the Bruce and all of the lords of the land had indeed betrayed him.
But trump promised!
As long as the Dow is hitting record highs, everything is awesome. What happens in reverse, even a perfectly “normal” 20% “correction” in a bull market. At 10% people will be downing prozac.
Didn’t you hear, Stocks are like real estate, it only goes up! Gotta get in now!
Didn’t you hear, the stock market loves a trump presidency!? They’re also saying his hair somehow fixed unemployment. .. we’re saved!
President Carrot Top should not have been so incompetent to brag about “his” bull market. He’s the exact same guy in August who said stocks were in a bubble.
I noticed that. … wonder if anyone else did? 😉 he’ll have to take the credit for the next major distribution by the “manipulators”…. 🙂
If it’s last call. .. just leave a bottle of jack. Have a good weekend brody..
Ambassador, Bhadrakumar, a retired India diplomat, a few days ago wrote a column to suggest that the ongoing fight between Mr. Trump and his detractors is actually good for world peace. It is a sad but true and well-supported conclusion. You can read his column by clicking the link below:
http://blogs.rediff.com/mkbhadrakumar/2017/03/22/american-civil-war-is-good-for-world-peace/
It’s a good piece, and yes the curtain is closing – the bond bear market will be adios.
Comparison of the net long positions of large speculators on Treasury, Gold and Silver before and after the rate hike: Speculators continue to reduce silver net long and treasury net short position while increase gold net long position.
The spreading of gold position starts to increase again, suggesting that the speculators are not quite sure of the direction of gold movement. It appears consistent with the small oscillations of the price miners last week.
Apparently the hedge funds are starting to agree with my bullishness on Treasuries. And I see that about silver, it’s helpful. But the rally the last few days will get us right back to where we were. And Andrew Maguire coming out with his “Comex default” crap on Friday is quite concerning. I’m not buying PMs here, but gold itself is setting up for an excellent second half.
The Kitco Gold Index has one purpose, that is to determine whether the value of gold is actual, a reflection of changes in the US Dollar value, or a combination of both.
The U.S. Dollar Index® represents the value of the US Dollar in terms of a basket of six major foreign currencies: Euro (57.6%), Japanese Yen (13.6%), UK Pound (11.9%), Canadian Dollar (9.1%), Swedish Krona (4.2%) and Swiss Franc (3.6%). It is an exchange traded (FINEX) index and has become a standard used worldwide.
The Kitco Gold Index is the price of gold measured not in terms of US Dollars, but rather in terms of the same weighted basket of currencies that determine the US Dollar Index®.
Since the Kitco Gold Index has no US Dollar component it needs to be compared to the actual US Dollar price to give it some perspective. In all of the historical and live charts that we are displaying here we’re showing both trend lines for the purposes of making this comparison. Here are a few possible situations that you may see and what the meaning could be:
The Kitco Gold Index is up and the USD price of gold is up even more:
This would definitely mean that gold has increased in value. It also means that the USD has weakened and so the degree of the gold value increase will be exaggerated when examined strictly in terms of the US Dollar.
In the present case, the price of gold increase by 0.28% in a basket of foreign currencies. And the difference between 0.76% and 0.28% is due the weakness of dollar.
Scott,
If S&P 500 orderly retreats by 10% in next 2-3 weeks (in a way similar to that in late October and early November of 2016), what you think gold, miners and dollar will likely react ?
That is the concern, more like in December 2015, when gold was strong, and the stock market was in a serious correction mode. Gold stocks/commodity stocks bottomed before the S&P. But the $ was peaking then. So that then becomes an issue this week with a probability of a $ bottoming taking hold.
Euphoria
Brexit and the election of President Trump was a turning point in world history-
In both cases victory was confusing to the elitists and Central Banks in America and Europe.
This turn of events speaks volumes about current day politicians who are only feathering their own nests.
Their crazy policies of running up huge volumes of debt and at the same time producing a generation of debt junkies.
Why is society like it is today? Answer; Incompetence by Central Banks and Governments
For this reason populism has come to the front around the globe.
Donald Trump is part of that populism and he may have grand ideas ‘America First’ but when you live in a democratic society his ideas must be shared and voted on by all elected persons that serve government.
His ideas maybe good in some instances, however, two things will kill those notions;
Firstly entrenched establishment will block his ideas simply out a ‘we will teach you a lesson’.
And secondly Mr Trump’s business plan for his future spending programmes is simple arithmetic i.e. what do I need to spend in a productive manner and what is my income in order to reduce my deficit in the future. The right answer will produce the happiness that America and Europe yearn for?
Good Luck with your business plan Mr. Trump.
Mr Micawber’s famous, and oft-quoted, recipe for happiness:
“Annual income twenty pounds, annual expenditure nineteen [pounds] nineteen [shillings] and six [pence], result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.”
Any proposal well thought through takes time (In Mr Trump’s case 9 months) therefore I cannot believe how euphoric the Wall Street Casino players have acted on pure rhetoric alone to send the markets into the stratosphere.
Once the wind is taken out of the almighty dollar you can kiss good-bye to the dollar standard plus the Dow/FT and watch for the hedge/pension fund movements into precious metals.
I am long on precious metals and believe it is a ‘no brainer’.
Regards
Michael Harvey
Resident in Ireland
PMs are certainly bullish (long term), I wish there were a sure thing market-wise, but what is certain is Trump will run up the debt just like the rest of them. No one in “leadership” is even pondering what this world will look like with even a 6% long Treasury (around 3% currently). Let alone a 10% Treasury.
I, for one, am giving this guy a chanced. I mean, what else is there to do. You can bitch and moan all you want but the bottom line : it is what it is. He inherited what we have. Period. He can try to default on the debt, Then what? He can keep feeding the pigs at the teat. Then what? He can try reforming taxes, reforming healthcare, reforming his flippin hairdo! Then what? No matter what he does he’s got clowns to the left of him and jokers to the right just waiting to say, “See, I told you so! Boofreakinhoo!! he sucks!!”
So you know what he’s going to do? He’s going to do what he thinks he should do. Don’t believe me, read his freakin books! That he got this far is a miracle in itself.
“The cheek of every American must tingle with shame as he reads the silly flat dish watery utterances of a man who has to be pointed out to intelligent foreigners as the President of the United States.” quote from the Chicago Times following Abraham Lincoln’s Gettysburg speech.
“I went to the White House shortly after tea where I found ‘the original gorilla,’ about as intelligent as ever. What a specimen to be at the head of our affairs”. This was spoken about Lincoln by General George McClellan.
Any of this sound familiar. Things may be written in stone concerning the dollar, the economy, etc. but I believe that Lincoln wouldn’t have succeeded if he didn’t have the people he had behind him. And if you hate Trump because he beat HRC, get another box of kleenex, get the hell out of the way and get the hell over it will ya! It’s getting tired!!
I voted for him Larry and hope he succeeds, but even (especially) his own party will make sure he doesn’t. And yes he’s “caught in the middle”.
Agreed Scott. I for one can picture that one day Trump, if he hasn’t already, will be sitting there with that look on his face that William Wallace had in the movie “Braveheart” when he realized, while sitting on his arse in the field after getting the crap kicked out of him, that Robert the Bruce and all of the lords of the land had indeed betrayed him.