Posts by Adam Baratta

Don’t Wait

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After rallying several hundred points off yesterday’s lows, stocks are once again under significant pressure today as worries over trade and numerous other issues take a toll on investor sentiment. As stocks continue to crumble right before investors’ eyes, the gold market is quietly pushing through previous resistance at the October highs and could be gearing up for a significant rally in the weeks and months ahead. There are numerous issues at play that could facilitate a sharp asset rotation in the months ahead, and... Continue Reading

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Is the Fed Starting to Backtrack?

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Rising interest rates have been the topic of considerable debate in recent months. The Fed has been sticking to its plan of gradual rate hikes while the benchmark 10-year note yield is solidly above the 3% level. Higher rates have not gone unnoticed, with everyone from President Donald Trump to Mad Money host Jim Cramer weighing in. Stock investors have also made their opinion clear, with recent declines and increasing volatility being largely blamed on higher rates. So far, the Fed has stuck to its... Continue Reading

Trouble Brewing

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The last several weeks have seen a very noticeable difference in risk appetite and market dynamics. Stocks have begun to show some significant signs of cracking as volatility has broken out to the upside. For stock investors, the last several weeks could simply be a small taste of more to come. Indeed, the market has covered a lot of ground over the last decade and could have a long way to fall if fundamentals continue to deteriorate. The next major potential catalyst for another leg... Continue Reading

Any Day Now

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The gold market is trading slightly higher to kick off the new trading week. This week will likely see lighter trading volumes due to the Thanksgiving holiday, with many investors taking off Friday as well. The gold market appears to be in consolidation mode and could be getting ready for a significant upside breakout. The market has passed an important test in recent sessions, as the recent dip down to the $1200 level found willing buyers. The catalyst for the next major move higher could... Continue Reading

Are Hikes Beginning to Hurt?

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The subject of the Fed and its plans to continue with gradual rate hikes has been the topic of considerable debate in recent months. Thus far, the central bank has stuck to its guns and moved ahead with more hikes. In fact, the central bank has another hike planned before the end of the year and currently has three more penciled in for next year. It’s no secret that the Fed has drawn some criticism. Even President Trump has weighed in on the issue. The... Continue Reading

What is Oil Telling the Markets?

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The last several weeks have seen renewed stock market volatility as investors contend with the ongoing trade war with China, rising rates and the highly anticipated midterm elections. The elections have now come and gone, however, the other factors remain a source of concern for investors. With so many potential distractions, it is easy to see why recent price action in the oil market has not gotten too much attention. Although the market’s recent slide has been mentioned here or there, the recent declines could... Continue Reading

Gold Rockets Higher Despite Stock Rebound

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Gold is climbing sharply higher today as an improving technical posture, weaker dollar and disappointing data fuel buying interest. In what seems to be a recent trend, the latest reading on ISM manufacturing came in below expectations. Although the reading was still solid, the slightly lower gauge could potentially point to weakening economic growth. Other key data points in recent weeks have also shown a tendency to come in slightly below consensus estimates, and if the recent trend does continue it could start to raise... Continue Reading

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Don’t Fight the Fed, but Don’t Ignore It Either

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There is an old saying that says “Don’t fight the Fed.” This saying is typically directed at stock market bears that remain bearish equities even as the central bank lowers rates or maintains ultra-low levels of rates that encourage risk taking. The phrase happens to make a great deal of sense, as the Fed is essentially the most powerful financial institution that there is. The Fed has the power to control the money supply, and to “create” new money out of thin air. If the... Continue Reading

Are Stocks Ready to Really Roll Over?

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It was supposed to be a bright day for U.S. stock markets. Both China and Europe were higher in previous sessions and U.S. markets appeared early on ready to follow suit. The gains in U.S. equities evaporated quickly, however, and markets are now trading decidedly lower. Chinese markets have been a major topic of speculation and concern in recent months. The benchmark Shanghai Composite index has lost around a quarter of its value since the beginning of the year. Worries over slowing growth in China... Continue Reading

Strength Despite Strength

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The gold market has been showing some important signs of strength in recent action. The market has moved sharply higher in a short period of time, and is hovering around a 10 week high. Overall sentiment around the gold market seems to be improving and the market is also now on more sound technical footing. Of particular note today is the fact that gold is higher again despite stocks being sharply higher as well. Stocks are not just slightly higher, either. As of this post,... Continue Reading