These “markets” are priced for zero mishaps or mistakes, both of which are only getting started…
Pure market chaos this Sunday evening.
Check out the plunge in crude oil:
We’re now down over 38% peak to trough on the 5-minute chart.
Dow futures are not looking forward to the future:
It’s looking like we’re setting up for one crazy week next week!
Gold has punched through $1700:
Silver has also gapped-up.
What is the catalyst?
The fundamentals are now fully exerting themselves into the markets on all fronts, and because we’re talking about the fundamentals, there’s nothing governments or central banks can do to combat it effectively, especially since governments and central banks themselves are the ones who created this mess.
Here are a few of the fundamentals driving the markets right now.
The MSM is quick to point out the battle between (formerly?) OPEC+ member nations:
It’s every country for itself, or so it seems after a meeting between OPEC+ and other major producers ended in acrimony on Friday, which has the market now worried about a price war between some of the biggest oil producers in the world.
Russia and Saudi Arabia are likely to significantly hike their respective outputs after this month’s conclusion of a global pact between the Organization of the Petroleum Exporting Countries and the other largest oil producers, including Russia, according to recent reports.
The moves come after plans by OPEC and allies, a group known as OPEC+, to stabilize oil prices at a series of meetings in Vienna last week ended in bitter dissent, with Russia rejecting a plan for additional output cuts and sending prices for the commodity plummeting to their lowest levels in roughly three years.
The fundamentalist is quick to point out the fact that you can only store so much oil above ground.
It’s not like gold, or silver, or copper, but instead it requires heavy, bulky storage, and without a doubt, if the threat of a coronavirus pandemic is real, then the collapse in demand for oil is even more real, so if anything, hostility between OPEC+ nations is a symptom of the underlying problem.
Amazingly, about half of the country, albeit anecdotally in stores, in restaurants, and elsewhere, think the fear is being way overblown and that Covid-19 isn’t even as bad as the flu.
PREDICTION: THE US MILITARY WILL RETURN TO THE UNITED STATES, AS IN – “BRINGING THE TROOPS HOME” – DRIVEN BY AND FAR BY THE NEED TO NATIONALIZE HEALTHCARE, RUN BY THE US MILITARY OF COURSE, WHICH WILL FORCE CIVILIAN HEALTHCARE WORKERS TO REPORT TO WORK.
Terrorists fighting “sovereign” Middle-Eastern nations is one thing, but the Greeks and the Turks are another:
— Abdullah Bozkurt (@abdbozkurt) March 8, 2020
— RT (@RT_com) March 7, 2020
The chart huggers are looking sillier and sillier by the day, and I only gave three reasons.
The fundamentals are exerting themselves so much more than in these “markets”.
The fundamentals are also exerting themselves on Main Street.
I had a delicious Chicken Parmesano at a local restaurant, and I asked our waitress if anybody at work was talking about what would happen if there was a local or regional outbreak, and consequently, people didn’t go out to eat in restaurants.
Not surprisingly, she is still in denial or avoidance.
Bottom line being it’s “just the flu”, you know?
“The news is blowing it out of proportion”.
Only, if the threat of pandemic is real?
Then we’re at one of those times.
You know, a time in history.
Before Covid-19 & after.
When we openly say.
What life was like.
Before the “flu”.
– Half Dollar
About the Author
U.S. Army Iraq War Combat Veteran Paul “Half Dollar” Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart.