For decades, I have defined the August 7 – October 31 time frame as “crash season”. There’s no question that current US stock market price action is very concerning.
The real risk of being invested in US stocks during these three months dramatically outweighs any potential reward.
That’s because GENERATIONAL WEALTH can be destroyed in a few days, weeks, or even hours.
August is typically the set-up month, and the crash and/or ensuing bear market occurs in either September or October.
Those expecting a Stock Market crash on elul 29 (September 13, 2015), expect to be disappointed; for it is the following year of Jubilee that is expected to bring all the devastation to the world stock markets!
What could the ‘destruction’ be? How about world economic and financial collapse!
With regards to the Gold & Silver:
Silver is not performing nearly as well as gold. We had a clue about that early this week, when silver underwent a massive sell-off while gold endured only a modest drop. Silver has been unable to close much above 15.50; while it remains above its 50 MA, it is encountering consistent selling on any moves higher than about 15.55.
Compare what silver did this week vs what gold did:
Gold is an asset in “flux”. US financial system risk is declining (but not gone). Deflation is ending, and inflationary road signs are clearly appearing.
Rate hikes, a duty cut in India, and a Chinese gold fix are imminent. The downside bias of the drifting rectangle in gold, silver, and related stocks is ending, because the fundamental drivers of it are changing quite dramatically.
All hands now need to be on the accumulation deck, of the good ship called…. gold!
Welcome to the world of ZIRP zombies:
A very long cycle term perspective on Gold and cycle ‘THEORY’: Starting in 1980 and the $850 top, 3 cycles of 7-years equals the years 2000 – 2001 and the $253 Gold low. One cycle of 7-years forwards starting in 2001 should ‘in theory’ form a top in the year 2008, well it did at $1033. The next 7-years forward from 2008 and $1033 Gold top takes us to 2015; therefore cycle ‘THEORY’ continues to indicate NEW ALL TIME HIGHS for both Gold and Silver are still possible and ‘in theory’ still expected this year, 2015!
There is only one way to achieve NEW ALL TIME HIGHS and it is called a spike.
Presently the $1072 July 2015 low is expected to hold and we will know more very soon; if it does, look out and fasten your seat-belt to some very big numbers as the long awaited Gold and Silver short squeeze expected since June 2015 could be dead ahead and soon…
Conspiracy buffs feel gold is manipulated and want to see a lot more transparency on the COMEX, but I’ve argued that a bigger key to higher gold prices, is to add transparency in Chinese markets.
The Chinese government and central bank are moving very quickly to get that done.
SAFE has started releasing a monthly report of the nation’s FOREX holdings, and that includes gold.
Before we pronounce gold dead and write its final eulogy, let’s consider the following:
- Will the Floodgates Open and Send Gold Plummeting Under $1,000/oz?
- RCM Massively Cuts Orders for Silver Maples– according to source, cites “Blank Issue”
- EXTREME PHYSICAL TIGHTNESS: Gold Backwardation WORST EVER, Silver Scarce in Size
- When Will We See a SQUEEZE? Every Silver Short Added Over the Past 3 Weeks is Underwater!
- Eric Explains Why Carnage in the Mining Industry is INSANE
The SD Weekly Metals and Markets With The Doc, Eric Dubin, and Craig Hemke is below: