Monday, January 20, 2020

Larry Kudlow Wants A 50 b.p. Cut In Fed Funds – Why?

by Dave Kranzler, Investment Research Dynamics:

The stock market has been rising relentlessly since Christmas, riding on a crest of increasingly bearish economic reports. Maybe the hedge fund algos are anticipating that the Fed will soon start cutting rates. Data indicates foreigners and retail investors are pulling cash from U.S. stocks. This for me implies that the market is being pushed higher by hedge fund computer algos reacting to any bullish words that appear in news headlines. For example, this week Trump and Kudlow have opportunistically dropped “optimistic” reports connected to trade war negotiations which trigger an instantaneous spike up in stock futures.

Chinese Media Respond to Trump on Trade War: ‘The U.S. Side Will Feel the Pain’

by John Hayward, Breitbart:

The editor of China’s state-run Global Times responded to U.S. President Donald Trump’s “order” for American companies to “immediately start looking for an alternative to China” on Friday by promising the U.S. side of the trade war will “feel the pain” from Chinese retaliation.

President Trump said on Friday morning via Twitter, “We don’t need China and, frankly, would be far better off without them.”

If Gold is in a Bull Market, Buy Silver – David Brady (05/07/2019)

by David Brady, Sprott Money:


When Gold falls, the GSR typically rises as Silver falls even further than Gold. Call it a high beta play on Gold. The same happens in reverse, when Gold rises, the GSR typically falls as Silver outperforms Gold to the upside.

From 2001 to 2003, when Gold was rallying off its low of ~250, Silver lagged Gold’s performance during that entire period. The GSR rose from 46 to 82.

Keiser Report: China in the Gold Buying Spree (E1371)

from RT:

In the second half, Max interviews author, financial commentator, and comedian Dominic Frisby of about the latest on bitcoin and gold markets. Regarding gold, they ask whether or not the record gold buying from central banks will ever impact prices.

GOLD – Short Term Risk Remains Down but Close to a Major Low – David Brady (23/05/2019)

by David Brady, Sprott Money:


  • Another crash in stocks followed by a Fed reversal to rate cuts and QE will likely signal the peak and fall in the dollar and the bottom in Gold (and Silver).
  • As long as we remain above 1167 in Gold, I am only looking up.
  • The risk / reward at the current levels in Gold (and Silver) is heavily skewed to the upside.
  • We are heading down to a major low from which we will see a massive rally to new highs in Gold above $1400.

Irrational Exuberance Abounds as the FED Caves to Market Pressures – Nathan McDonald (21/02/2019)

by Nathan McDonald, Sprott Money:

On August 16th, 2018, gold bullion ended its long-suffered downtrend, closing at $1176.20 USD.

Fast forward to today and we have a much different picture, as gold has rallied—and rallied hard—from this low point, hitting as high as $1340.10 USD earlier this week.

This continues the trend I said would unfold throughout 2019, and as we highlighted recently, it is coming to fruition as Eastern Central Banks become net positive buyers of the yellow metal, buying physical gold hand over fist.

As we have stated before, this charge is being led by some key players such as Russia, China, Turkey, Poland and India, all of whom are buying gold in ever-increasing quantities.

The Fed Appears Poised to Resume Monetizing the US Government’s Massive Debt

by Peter Schiff, Schiff Gold:

It looks like the Federal Reserve is about to get back into the bond business and help the US government deal with its massive debt.

The Treasury Department announced yesterday that it will not have to borrow as much money in the third quarter of fiscal 2019 as originally anticipated. But this is not because of a slowdown in government spending. According to a Treasury official cited by Reuters, the reason for the lower borrowing estimate is due to an anticipated increase in Fed Treasury holdings as the central bank ends its balance sheet reduction program.

Massive Internet Outage & City Hack Attacks Should Remind Us All How Fast Everything Can Be Gone In A Blink Of An Eye

by Stefan Stanford, All News Pipeline:

Tuesday morning millions of internet websites went dark, including here at ANP, with tens of millions of people getting a 502 error pagerather than the website they were trying to access. According to Cloudfare, which was behind this massive internet outage, this was due to an internal software issue much different than last weeks BPG outage which was caused by an external issue.

For about 30 minutes today, visitors to Cloudflare sites received 502 errors caused by a massive spike in CPU utilization on our network. This CPU spike was caused by a bad software deploy that was rolled back. Once rolled back the service returned to normal operation and all domains using Cloudflare returned to normal traffic levels.

Ready To Surge: Dow Is Going To Need A Lot More Than 23,000 To Fend Off Gold & Silver


from SilverDoctors:

SD Monday Outlook: Key price levels in gold and silver come into view, but the Dow will look to steal the show. It’s going to need a lot more than 23,000…

First this to start a Monday Morning:

In the overnight session, gold and silver have been looking good with respectable price action:

For this Monday Outlook, let’s see where we have been over the last year. As we can see, gold and silver have been all over the place.

For example, Silver is lower than where it was a year ago:

On November 9th, we had the election night spike higher, and then two days lower, they brought the smash. We are in a good position for the week when we move our eyes to the right side of the chart. The 50-day is right there at the 200-day, ready to show the world that the 50-day has decisively crossed to the upside. We know that already, but since the metals have had no love all year, it will be good for everybody else to see it.

Regardless, the silver price is decidedly lower than a year ago. It hasn’t been much fun, and those month long smashings this year have been brutal, but the more they try to force the price down, the more this pent-up energy needs to be released, and the cartel could quickly become overwhelmed.

A problem area on the chart is around $17.70. That is June 6th peak before a month long fall. Once silver gets through that level, the price needs to take out $18 with determination.

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