NFTRH 518 Excerpt: Precious Metals

Posted on by The INO.com Team

In honor of the men staring at silver’s daily chart, let’s highlight NFTRH 518’s Precious Metals segment this morning. We have 60% of the new trading week in the books and not much has changed for the PMs since this was written. You’ll notice that this man who stares at charts gets a little wordy at the end. There is much context that would-be gold bugs need to have in hand.

Precious Metals

Last week:

Here is how I see the precious metals situation. It’s one or the other of…

  1. US dollar declines short-term and the precious metals bounce with the rest of the anti-USD trade, or…
  2. US dollar rises (likely along with the Gold/Silver ratio) and the precious metals decline again into a real buying opportunity.

Thing 1 carried the day (week). I don’t care (well, actually I do but work with me here…) how many gold bugs leave the subscriber base while I am not able to give a long-term green light, but we are going to track the proper fundamentals, not the imaginary ones. And this bounce along with China, copper, global stocks, US stocks and everything else in the cyclical world is not proper. Not until all that crap tops out.

It. Is. A. Bounce… until it proves otherwise by seeing gold rise against CRB, SPX, ACWX and while we’re at it, global currencies.

So for now it’s just a bounce, and the [daily] Silver/Gold ratio did make a positive hint of Friday. Continue reading "NFTRH 518 Excerpt: Precious Metals" →

Can It Happen Again? Emphatically, Yes

Posted on by George Yacik

The last few weeks the financial press has been filled with articles noting the passing of the 10th anniversary of the Lehman Brothers bankruptcy. A few of the articles have been hand-wringing of the sort that if Lehman had only been rescued – like AIG – or merged with a strong commercial bank – like Merrill Lynch – the crisis would have never happened, or at least it wouldn’t have been so severe.

That’s wishful thinking. There was plenty of reckless and irresponsible behavior taking place on Wall Street to create the crisis that did develop, whether Lehman was saved or not. Like giving home mortgages to anyone who asked while creating securities backed by these often worthless loans, which only magnified the risk by a huge factor, then slapping a triple-A credit rating on them, so everyone was assured that everything was fine.

But most of the recent articles have been about whether such a crisis can happen again. And the answer is, unfortunately, absolutely. We may already be seeing the seeds being planted right before our very eyes, although I’m not sure how close we are to the next crisis. It certainly bears careful watching.

Boom-and-bust cycles are endemic to any free-market capitalist system anywhere, unfortunately, since they’re largely based on self-interest and, too often, greed. The only system where that is not the case is a planned or Communist one, where the economy is perpetually in bust mode. When the next bust will hit is anyone’s guess, but it seems with each passing day that we keep moving closer and closer to it, and not a whole lot is being done about it. Continue reading "Can It Happen Again? Emphatically, Yes" →

Stocks Steady Ahead of Fed Announcement

Posted on by The INO.com Team

Hello traders everywhere. Barring a surprise it's widely expected that the Federal Reserve will announce that they are going to raise rates by 25 basis points today, making this the eighth time it has tightened policy and raised rates since 2015. Fed officials will also present some revised projections for future rate moves along with their outlook for inflation, employment, and growth.

This week's two-day policy meeting could mark the formal end of the "accommodative" level of rates the Fed has used to support the American economy since the onset of the 2007-2009 recession.

fed

Crude oil has backed off its recent highs, the highest levels in almost for years, as Washington tried to assure consumers that the market would be well supplied before sanctions are re-imposed on producer Iran. The U.S. will apply sanctions to halt oil exports from Iran, the third-largest producer in the Organization of the Petroleum Exporting Countries (OPEC), starting on Nov. 4. The pending loss of Iranian supply has been a major factor in the recent surge in crude prices. Many analysts believe that the loss of Iranian oil will push the price of oil to $100.

Key Levels To Watch This Week:

Continue reading "Stocks Steady Ahead of Fed Announcement" →

10-Year U.S. Treasury Note Yield Eyes 3.33%

Posted on by Aibek Burabayev

Last week I promised to update the outlook for the U.S. interest rate, which has a strong impact on every asset class including precious metals.

More than a year ago I shared with you my concerns about the future of gold once the “era of rising rates” would come. The 10-year U.S. Treasury note yield (10Y) was at 2.2%, and large investment banks forecasted 3% yield for the near future at that time.

Indeed, that future has come in one year the 10Y is above the 3% now, and it doesn’t look like it’s the final stop. To see what could be the next I’ll share with you two charts starting from a short-term view.

Chart 1. 10Y Weekly: 3.33% And More

10-Year U.S. Treasury Note Yield
Chart courtesy of tradingview.com

This chart above observes the past five years to envelop the earlier top of 3.04%, which is under a second attack as the first one this past May couldn’t peg it. The yield closed last week at the 3.07%, and this time it could finally overcome the barrier to reach the target.
Continue reading "10-Year U.S. Treasury Note Yield Eyes 3.33%" →

Is $100 Crude Oil In Our Future?

Posted on by The INO.com Team

Hello traders everywhere. The big news of the day is that crude oil is trading 2% higher on the day and at a new four-year high breaking through the $72 a barrel level. The jump in price is because Saudi Arabia and Russia ruled out any immediate increase in production despite calls by President Trump for action to raise global supply in a tweet on Thursday where Trump said the "OPEC monopoly must get prices down now."

Many analysts believe that the crude oil producers such as OPEC can't compensate for the for U.S. sanctions on Iran's exports. Even if they increase output by 500,000 bpd, the overall oil market will still fall short by about 1.5 million bpd that Iran was producing.

crude oil producers

After setting new record highs the stock market ending last week on a weak note and that has continued into Monday. The reason? The trade war between the U.S. and China escalated with further tariffs and the cancellation of trade talks between the two countries.

The Wall Street Journal first reported late Friday that China had canceled talks with the U.S. on trade as both countries impose tariffs on billions of dollars worth of their goods. The two sides were set to meet to dial back tensions, but the Journal reported that China rescinded a proposal to send two delegations to Washington.

On Monday, a 10% U.S. levy on $200 billion worth of Chinese goods came into effect. The 10% rate is also set to rise to 25% by year-end. China has retaliated, targeting duties on more than 5,000 American goods worth a total of $60 billion.

Here are some key events coming up this week:

Continue reading "Is $100 Crude Oil In Our Future?" →