79 replies to this topic

[dharma]

Not only did the BoE cut interest rates by 25 bps as fully expected, they expanded sovereign QE by 60b to 435b from 375b pounds and they are adding a corporate bond buying program but that is modest, just 10b pounds over the next 1 1⁄2 years. They also added a short term lending program for banks to cushion the impact of low rates. The vote was 9-0 to cut rates but there were 3 dissents on sovereign QE and 1 on the corporate bond buying. As to be expected the pound is getting hammered and gilts are spiking higher with the 10 yr falling by 16 bps. Their 2s/10s spread is narrowing by 4 bps to the lowest in 8 years. Sorry banking system.  

well if you needed proof of the creativity of central banks the boe provided it today. they copied the fed, boj, and eu. of course england will have a different result.  (not)

sure there is going to be corrections. but the trend for the precious metals is higher, and my guess is alot higher

oh and if you wonder who was buying us equities http://realmoney.the...r-u.s.-equities

dharma

 

[dharma]

the last time volume was light, gold coiled for a big move higher!

sept 4 g20    that could cause a big move higher , when it is seen all of them are in the hotel california. see that mountain over that, that is what is preventing the cbs from raising rates.   they simply cannot afford higher rates.  so as the bof e showed today  qe and lower rates= good times for the bugs

dharma

Edited by dharma, 04 August 2016 - 03:17 PM.

[johngeorge]

dharma

 

"so as the bof e showed today  qe and lower rates= good times for the bugs"

 

Which is why I believe that Bill Gross and Jeffrey Gundlach have both made announcements to the effect that the only thing worth buying now is gold.  Risk reward appears much better for gold than bonds and bonds pay little or no interest.  I would say it is a no brainer.  Having said that I have sold all my bonds, US long term and tax free long term, and looking to buy more physical gold in the form of US Eagles.  Perhaps some PHYS as well. 

[dharma]

so far nothing is conclusive w/todays action. i like to watch the 20day ma or 21 day ma.  which is holding so far for gld /gdx

1341 and 1325 are support 

1358 is the next higher price cycle

today is the bradley. 

i will lighten up should that action be warranted. 

interesting bill gross announces gold is his baby, and then the market tumbles

if anything new ever happens. it will be miraculous. 

dharma

[dharma]

while marty sits in the dark!

looks like the move to a new reserve currency is in the making

http://www.theepocht...serve-currency/

 

 

chinas inclusion in the sdr a 1st step

http://www.theepocht...serve-currency/

 

in order to do this china has to prove enough gold reserves. 

http://www.scmp.com/...hts-bond-issues

 

change in the air

dharma

[johngeorge]

dharma

 

I believed it was true when you previously posted something to the effect China has your back for gold.  Appears there is more evidence of that in your above post. As for the miners today every one of mine took a hit EXCEPT CHPGF.  It was up 5 cents. Not investment advise!  Do your own due diligence. 

 

Just goes to show again what you have said all along......it is being accumulated big time.

[dharma]

pointing out that miners lead. this week we saw new highs in gdx/gdxj.  gold will follow ,  i dont know how long this correction lasts or to what extant we correct. but on the 9th heliocentric merc goes into sagg.  which is bullish.  there are so many catalysts out there. one month of strong jobs growth doesnt make a trend.   corrections are part of the process.  it would not surprise me to see 1523 tested this year.   we are in a magical period where the truth is obscured.     and yes there will be a correction of 25% in the miners.   its a time to look at your laggards and send them packing.  so when the correction comes you have amo to take advantage, i have some promising miners, that showed promise, that are now in someone elses portfolio.   

i do think we will see higher highs in august.   of interest to me is india has largely been absent from the  gold market. seasonally gold bottoms in august and enters its strong time of year. which in large part is caused by diwali buying

as for crude we are either there or close to a secondary, higher low.   in the 70s bull for a period gold and crude moved in lockstep  i have cash charts of crude, which started trading on the merc in 82 . so w/o these cash charts folks are guessing. they dont have history.  

dharma

Edited by dharma, 06 August 2016 - 10:58 AM.

[dougie]

Seems possible some sort of a IT top is now in

[dougie]

Anyone got tinka on the list?

anyone ??

[dougie]

Seems possible some sort of a IT top is now in

well what do you know