Just like I said, all assets are going up together. Sure, there will be brief periods where something will diverge for a few weeks or months. But the natural state of markets is for everything to rise during periods of global QE.

I knew this would resume once the manipulation of the gold market ended. I know of no other analyst that saw this coming. Why? Because all the other analysts assumed that gold was in a natural bear market. It wasn’t. The bear market in gold was created by suspension of the position limit rules allowing one or two big players to control price.

I continue to see clueless analysts expecting the stock market to collapse and gold to soar. Folks, if the stock market collapses it would be a massive deflationary event, and I’ve got news for you, during a deflation gold is going to crash as well. We aren’t going to have deflation. Open your eyes. Everything is screaming that inflation is coming, not deflation.

everything going up together
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  1. SLEP

    What does the Transit System Authority and the Federal Trade Commission have to do with silver and gold?

  2. TraderPete

    TSA and FTC stand for Time Series Analysis and Fibonacci Time Cycle respectively. TSA is a standard statistical analysis tool, and FTC is a cycle analysis tool using fibonacci numbers. Although I’m still bullish on gold and silver, they need to pull back a little bit more before they resume the uptrend.

    1. ras

      Likely. With bpgdm around 96, the pm complex is unlikely to make a big move from the current level. I f pms pull back a little more, then bpgdm will have a chance to pull back to a more decent level facilitating resumption of uptrend. Time will tell.

    2. Gary Post author

      Both are pulling back into cycle lows right now. I’m expecting a bottom sometime this week, possibly on the FOMC announcement.

      1. crawfordnews

        what if aunt Yellen surprised us with an interest rate hike on july 27?
        Could this be the reason why they have elevated the market for some kind of a head room of such an event??

        As the market makes these new all time highs, will the underlying economy catch up to it, or in time will the market fall down to it? That’s the question, that’s the choice. If they’re printing money out of thin air ( they are) and buying stocks with no regard to price paid…will this market do 25K? 30K? Could we see DOW 40K?

        No one has ever seen a market like this, because before 2008, central banks weren’t in the market like they are now. Ten years ago the idea of a central bank buying tens of billions worth of US stocks was a laughable concept. You’d be jeered out of town for mentioning it. Yet today it is the reality, and it’s turned the market into something grotesque.

        Get your popcorn. This show is going to be awful interesting to watch as the next several months unfold.

  3. ras

    Sector rotation is an integral part of the market behaviour. Even when all sectors move together generally, there will be some periods of divergence. In early July, 2016, some of the hot money must have migrated from the pm complex into spx/ndx/rut sectors pushing them higher.

  4. Steffmeister

    Gold is in a bear. Just look at the last time gold bottomed in 1999 and then 2years later revisited the low one more time in 2001. This is going to play out in a similar way imo. Gold bottomed in Dec 2015 and it will revisit the low one more time in late 2018/early 2019.

    1. Gary Post author

      That has to happen during an intermediate decline to get technical traders on the wrong side of the market before it bottoms.

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