What does the SSEC Continue to See that Global Mining Plays Don’t?
We had a post the other day that suggested price action in the SSEC doesn’t carry much informational content value anymore. To some degree, YTD results justify this view with the SPX up ~12% and the SSEC down ~7%. However, what if this view…
Gold & Silver Approaching Resistance as USD Nears Support
In the chart below we plot Gold, Silver and the USD on a weekly basis. Gold and silver are both approaching stiff resistance dating back to their 2011 highs. At the same time, both are nearing the completion of descending…
USD Finally Going to Find Support & Bounce, Hurt Precious Metals in the Process?
We’ve been broadly bearish on the USD since May. We’ve outlined the justification for that stance in various posts in the recnent past here and here. In a nutshell, from a statistical standpoint, history told us that the USD’s recent…
This Mystery Asset Looks to Share Two Bubble Tops Strikingly Similar to Silver’s Bubble Tops in 1980 and 2011
I’m not going to reveal what the top chart is yet as the whole point of this analysis is to clear our mind of biases and facilitate fluid and objective thought outside of the box. The lower chart I…...
Hedge Fund Legends Love Gold Again…Should They?
Add gold to the list of things that remain epic-ly confusing. Watching this metal (and silver and everything else) is like watching paint dry. When will the next big move happen? If you refer back to our last post on…...
Is 2012 for the Nikkei Analogous to 2002 for Gold?
What is the most absurd vision of the future we can come up with right now? What asset class or region seems least likely to embark on the next great secular bull market (or bear market)? Think back to the…...
Did Corn Meet its Maker Today?
Corn and grains in general have had a massive rally this summer due to the heat and lack of precipitation across the U.S. That’s pretty much been the case here in CLE, OH as well – a lot of heat,…
Commercial Hedgers Love Copper & Large Speculators Hate It; Which Group Usually Gets It Right?
The chart below shows that commercial hedgers have amassed the largest net long position in the metal since 2004. At the same time, large speculators have amassed one of the largest short positions they’ve ever held over the same period….
Repeating Pattern in the Ratio of Copper vs. Gold Suggesting Another Fall 2008 Scenario?
We’ve commented on the ratio of copper vs. gold a few times over the past few months including here and here. The ratio tends to be a good proxy for global economic activity and risk levels. Prior posts have centered around the…
Next Stop for Gold Either $3,000 or $1,100
Gold’s technical set-up is very interesting. The metal, given its technical posture, is likely in front of an imminently big move either higher or lower (that’s not much help, eh?). What follows hopefully clarifies how to know when the metal’s next…...