Best of the Week
Most Popular
1. 2019 From A Fourth Turning Perspective - James_Quinn
2.Beware the Young Stocks Bear Market! - Zeal_LLC
3.Safe Havens are Surging. What this Means for Stocks 2019 - Troy_Bombardia
4.Most Popular Financial Markets Analysis of 2018 - Trump and BrExit Chaos Dominate - Nadeem_Walayat
5.January 2019 Financial Markets Analysis and Forecasts - Nadeem_Walayat
6.Silver Price Trend Analysis 2019 - Nadeem_Walayat
7.Why 90% of Traders Lose - Nadeem_Walayat
8.What to do With Your Money in a Stocks Bear Market - Stephen_McBride
9.Stock Market What to Expect in the First 3~5 Months of 2019 - Chris_Vermeulen
10.China, Global Economy has Tipped over: The Surging Dollar and the Rallying Yen - FXCOT
Last 7 days
20 Days Left to Find Buying Opportunities In Gold - 25th Mar 19
Will the Historic Imbalance in Gold Stocks to Gold Price Resolve ? - 25th Mar 19
EasySMX Wireless Games Controllers Review - 25th Mar 19
Stock Market Short-term Top - 25th Mar 19
UK Population Growth - Latest ONS Immigration Statistics and Consequences - 24th Mar 19
The Fed Follows Trump's Tweets, And Does The Right Thing - 24th Mar 19
Yield Curves, 2yr Yield, SPX Stocks and a Crack Up Boom? - 24th Mar 19
Risk/Reward in Silver Favors Buying Now, Not Waiting for Big Moves - 23rd Mar 19
Similarities Between Stock Market Today and Previous Bull Market Tops - 23rd Mar 19
Stock Market DOW Seasonal Trend Analysis - 23rd Mar 19
US Dollar Breakdown on Fed Was Much Worse Than It Looks - 23rd Mar 19
Gold Mid-Tier GDXJ Stocks Fundamentals - 23rd Mar 19
Which Currency Pairs Stand to Benefit from Prevailing Risk Aversion? - 23rd Mar 19
If You Get These 3 Things Right, You’ll Never Have to Worry About Money - 22nd Mar 19
March 2019 Cryptocurrency Technical Analysis - 22nd Mar 19
Turkey Tourist Fakes Market Bargains Haggling Top Tips - 22nd Mar 19
Next Recession: Finding A 48% Yield Amid The Ruins - 22nd Mar 19
Your Future Stock Returns Might Unpleasantly Surprise You - 22nd Mar 19
Fed Acknowledges “Recession Risks”. Run for the Hills! - 22nd Mar 19
Will Bridging Loans Grow in Demand and Usage in 2019? - 22nd Mar 19
Does Fed Know Something Gold Investors Do Not Know? - 21st Mar 19
Gold …Some Confirmations to Watch For - 21st Mar 19
UKIP No Longer About BrExit, Becomes BNP 2.0, Muslim Hate Party - 21st Mar 19
A Message to the Gold Bulls: Relying on the CoT Gives You A False Sense of Security - 20th Mar 19
The Secret to Funding a Green New Deal - 20th Mar 19
Vietnam, Part I: Colonialism and National Liberation - 20th Mar 19
Will the Fed Cut its Interest Rate Forecast, Pushing Gold Higher? - 20th Mar 19
Dow Jones Stock Market Topping Pattern - 20th Mar 19
Gold Stocks Outperform Gold but Not Stocks - 20th Mar 19
Here’s What You’re Not Hearing About the US - China Trade War - 20th Mar 19
US Overdosing on Debt - 19th Mar 19
Looking at the Economic Winter Season Ahead - 19th Mar 19
Will the Stock Market Crash Like 1937? - 19th Mar 19
Stock Market VIX Volaility Analysis - 19th Mar 19
FREE Access to Stock and Finanacial Markets Trading Analysis Worth $1229! - 19th Mar 19
US Stock Markets Price Anomaly Setup Continues - 19th Mar 19
Gold Price Confirmation of the Warning - 18th Mar 19
Split Stock Market Warning - 18th Mar 19
Stock Market Trend Analysis 2019 - Video - 18th Mar 19
Best Precious Metals Investment and Trades for 2019 - 18th Mar 19
Hurdles for Gold Stocks - 18th Mar 19
Pento: Coming QE & Low Rates Will Be ‘Rocket Fuel for Gold’ - 18th Mar 19
"This is for Tommy Robinson" Shouts Knife Wielding White Supremacist Terrorist in London - 18th Mar 19
This Is How You Create the Biggest Credit Bubble in History - 17th Mar 19
Crude Oil Bulls - For Whom the Bell Tolls - 17th Mar 19
Gold Mining Stocks Fundamentals - 17th Mar 19
Why Buy a Land Rover - Range Rover vs Huge Tree Branch Falling on its Roof - 17th Mar 19
UKIP Urged to Change Name to BNP 2.0 So BrExit Party Can Fight a 2nd EU Referendum - 17th Mar 19

Market Oracle FREE Newsletter

Stock Market Trend Forecast March to September 2019

Stock Market S&P Megaphone Top, Huge Volume Bullish Reversal in Junior Gold Miners?

Stock-Markets / Stock Markets 2014 Nov 14, 2014 - 09:19 PM GMT

By: Jeb_Handwerger

Stock-Markets In a recent landslide election, Republicans took back control of the Senate and House. President Obama’s approval rating is very low.  Although there a few making money in the stock market, the majority of the American people are fed up with close to 100 million people not working.  Welfare and entitlement spending is out of control.  The debt is still soaring close to $20 trillion and the dollar is rising making it even harder for politicians and banks to avoid default.


Somehow irrationally despite billions of dollars being printed under the guise of QE, the US dollar is rising.  The question is how long do you really believe this dead cat bounce in the US dollar will last?

It may be just a bounce in a long term downtrend and is only relative to the other fiat currencies in fast decline.  Smart investors should be accumulating gold and silver coins and high quality junior mining stocks trading now at historic lows.  It should be noted that coin sales are picking up especially mint grade numismatics.

Avoid the large cap equities like the S&P500 (SPY) making a classic megaphone top, US dollar (UUP) and long term treasuries (TLT) as these are markets overbought and where the fundamentals do not justify the current valuation.  I am very concerned about the exuberance in banking and real estate as the numbers of unemployed in America are still at record levels.  Avoid “fairy tale” sectors which try to say that Price Earning Ratios do not matter or that we are in a new era which justifies obscene valuations.

The Middle East Arab Spring has turned into an Islamic Winter.  Black swans could still be on the horizon.  Now the US is looking to team up with Iran to fight ISIS and possibly ignoring the threat of Iran’s nuclear ambitions.  Russia just stated  What we are seeing with the rise of the dollar and decline in commodities may be part of the war no longer fought with bullets and missiles but with foreign exchange rates.  The ruble is collapsing along with the Russian Economy.  China and Russia may begin to look to trade in Yuan to avoid the negative consequences of currency wars.

Those with US dollars are able to purchase gold and silver at low prices despite record demand.  The US Mint is showing record sales.  Many have asked how is gold and silver going down in price when demand is at record levels?  The only answer is that some games are being played in the paper market.  This week the regulators just fined the major banks for manipulating exchange rates.  Investors may be just beginning to lose faith in the manipulated paper markets and are just buying physical coins.  Some numismatics such as Mint Grade Morgan and Peace Silver dollars have had a nice rise this past year despite a decline in gold (GLD) and silver (SLV) prices.

The junior gold miners (GDXJ) are hitting record volumes which indicates massive capitulation.  The bear may be getting exhausted.  We know that bear markets end in panic and many bail at the low.  This time of the year the San Francisco Resource Conference was a main gathering for junior mining investors for many years.  Now it is cancelled.  This indicates to me that the public investor has panicked out chasing the bull market in US large caps, the dollar and long term treasuries.

When the retail investor is gone, the smart money accumulates.  Don’t rush, there may be retests of this bottom and long term resource investors should look to add to high quality position on weakness during this tax loss season.  Remember that bear market bottoms and tax loss selling season are some of the best times to buy at a discounted price.  In this resource bear market over the past four years picking the winners has been challenging, but still I continue to search for the juniors who are the winners.  Learn more about these mining trailblazers for free by clicking here...

By Jeb Handwerger

Disclosure: Author owns no stocks mentioned.

http://goldstocktrades.com

© 2014 Copyright Jeb Handwerger - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules