Stocks or the Dollar

The last several weeks have seen a resurgence of market volatility, and many investors are wondering if there is more to come. Through a very bumpy October for equities, gold made some solid strides higher as risk aversion increased. Markets have been a bit calmer in recent sessions, and the yellow metal has seen some declines taking it back to the $1200 level. The recent pullback is not due to the possibility of stocks stabilizing, however, but rather is due to a stronger dollar. The... Continue Reading

What is Oil Telling the Markets?

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

Big Week

The week ahead could potentially see some market volatility as there are numerous key issues that could fuel price action. The ongoing trade talks with China, the Fed meeting and of course the midterm elections could all impact market sentiment. The highly anticipated midterm elections are quickly approaching, and recent reports suggest that the democrats have a significant lead. The election is of significant importance, as a flipping of the House from republicans to democrats could have a huge effect on the Trump administration’s agenda... Continue Reading

Gold Rockets Higher Despite Stock Rebound

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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What Does Dr. Copper Say?

The copper market is often viewed as a barometer of overall economic activity. This makes complete sense, given its widespread industrial use. Copper has not performed well this year, however, and is poised to see its first annual decline since 2015. After rising by some 32 percent last year, prices have already declined by roughly 17 percent year-to-date. Of note, copper actually was higher over the first six months of the year before dropping by a whopping 20 percent in a period of just two... Continue Reading

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

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

Heed the Warnings

The last couple of weeks have seen rising stock market volatility as numerous issues weigh on markets and investor sentiment. The declines seen in Chinese markets cannot, and should not, be ignored. The Shanghai Composite is off some 25 percent since the beginning of the year, and more downside could potentially be in store. The Chinese economy has already shown some key signs of slowing, and if it does in fact slow further the effects may be felt all over the globe. Chinese officials have... Continue Reading

Are Stocks Ready to Really Roll Over?

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

Who Cares if the Fed is Hawkish?

The gold market is up again today, and appears to now be in consolidation mode following strong gains last week. Some sideways price action this week should not only come as no surprise, but should also be viewed as healthy. The bulls may simply be gearing up for the next major push higher. Recent price action in gold has certainly been constructive. The market has covered almost $50 per ounce in upside, and could just be getting started. The recent rally and improving technical posture... Continue Reading

Strength Despite Strength

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