Today Art Cashin warned of a winter shocker, but first, here is a look at the gold sector.

Testing Metals’ Mettle
October 16 (King World News)  Here is a portion of a note from Jason Goepfert at SentimenTrader:  
The impressive rally in gold miners has pushed the 3-day average of the Optimism Index for GDX above 80 for the first time in over a year (see chart below).

Sentiment Extremely Bullish On Gold Miners For First Time In Over A Year

According to the Backtest Engine, a 3-day average above 80 has led to a positive return over the next week only 39% of the time…

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This Would Bode Well For The Miners Long-Term
Jason Goeppert
When GDX was below its 200-day average, that win rate dropped to 35%. We went over some compelling positives for miners in August…so if they’re able to rally in the face of extreme short-term optimism, it bodes well for the longer-term.

Also of importance…

He Dropped A Bomb: It Might Be Colder For Years – Maybe Decades
Here is an extremely interesting portion of today’s note from legend Art Cashin:  
A Fresh Look At An Old Topic –
One of the Friends of Fermentation has a buddy who is an amateur meteorologist. He is great at predicting hurricanes, nor’easters and snowstorms, often weeks and even months ahead. 

The weather guy told my FoF friend that this may be a particularly tough winter on the East Coast with several blizzards likely. Then he dropped the bomb. He said that things might be colder for years – maybe decades. He said the cause could be sunspots – or more correctly, the lack of sunspots. 

Longtime readers know we have written over and over again about sunspots although we haven’t written that much since the stock market and sunspot sightings bottomed out in 2009. 

So the mini-ice age comment prompted me to turn to another FoF member, my ham radio pal. 

After reminding me about the traditional 11 year cycle in sunspots, the ham radio guy said we look to be headed into a minima (bottom of the cycle) probably next year. 

He told me there have been several strings of days this year on which there were zero sunspots. Recently, there were no sunspots for 16 straight days, ending on September 29th. We then had a few each day for six days then a string of spotless days for seven days up to and including Thursday, October 11th. 

Get out the down parka and the snow boots – we’ll keep you posted.

***KWN has now released the powerful audio interview with John Mauldin discussing the gold market, this week’s stock market plunge, how QT will impact major markets, what will trigger the Fed to initiate the next round of QE and much more and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.

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