Loading ...Are we re-arranging the deck chairs on the H.M.S. Titanic?
I am re-posting my comment to Plunger concerning his great recent post about the market possibly topping (Contrary to some who are calling for S&P 10,000) because I am getting concerned that we are, in fact, approaching that iceberg.
It is to wit:
After thinking about, and re-reading, Plunger’s great recent post concerning the pin prick and the stock market status, I am beginning to think that, yes, we may be right about a bull market in Gold, but, if and when a 1929 scenario or even some other type of major top occurs, that, much like the piano player in the brothel, gold stocks might very well also be sold hard when the margin calls are issued, regardless of their value and that that may be the reason for their current lethargy. If so, we may be arguing about how many angels can dance on the head of a pin.
I hope this is suitable to post on the tent and and am hoping others can assure me that I am wrong.
Thanks.
Watch the SPX 2750 zone for an end to this bounce…
Its a very good question Music man
I forwarded to Plunger and hope he has time to address this in his post tomorrow for the Rambus Wednesday report
This may not what you wanted as a response or wanted to hear, but I think it’s realistic.
Yes, gold stocks would probably be sold hard. Look at gold and gold stocks in 2008, they got wiped out. What came after in 2009 was a fantastic bull market.
Here is a slightly dated article, describing gold stocks performance in the great depression. (perhaps again after a wipe out): https://www.caseyresearch.com/gold-stocks-depression/
No one really knows what will happen, not even the great Plunger. We may never have a crash, we may have a long 20% correction, maybe a long period of a tight range, consolidation.
As Eagle said, watch if we lose major support in spx and gauge the market reaction on that.
I’m also watching $UST10Y, I personally think all hell breaks loose or some kind of market reflection if that inverse h and s breaks above 3%.
Thanks, Tbone, for the 1929 charts.
Approaching an iceberg? Yes.
Did we hit it yet? No.
Warning shot? Probably. And its likely not over.
More music? Months at least. Perhaps a year.
Fait accompli? Not really, as I see it.
Either they save the banking system or they save the dollar. They can’t do both.
The leadership classes will get skinned either way. We all may too, if we are at all successful at protecting our financial hides. Think target practice.
SPX down to 1600 and they may panic and launch hyperinflation.
Or, doing so drives rates that much higher, and further and faster down she goes.
Its all about the bond market. Stocks are a sideshow.
Agree PD the FED’s priority has changed and the sacrificial lamb(s) at the moment shall be served. The ironic thing is the FED said it was coming.
The opportunities that may become available could be epic for those positioned correctly. MM your Great Grandkids could be wealthy beyond belief if you make the right choices. If this plays out worse case or even if it doesn’t it could be a great transfer of wealth. I’m looking at the optimistic point of view of course those positioned wrong or not paying attention too bad.
MM not every generation gets to experience what may be on the horizon. You can either fail, survive or prosper. At least you’re paying attention. Fear is a good emotion too lol.
Seize the Day My friend.
I love this group – a happy V day to all – made a ton in the 2000 to 2011 bulll left too much on the table but still doing fine – you are the best thinkers I read -luck to us all