The global selloff is continuing today with the Dow hitting the lowest level since March of 2021 and Bitcoin trading as low as $22,600 before rebounding, but legend Art Cashin says there are no signal of full capitulation.
June 13 (King World News) – Art Cashin, Head of Floor Operations at UBS: The market continues to wear down with very many of the implications of a liquidity event, however, we are not seeing a rush into treasury bonds, which would be systematic of a major flight to safety. A look around it would seem to hint that the liquidity area might have been in the cryptocurrencies, but the two items that have surfaced so far do not appear to be large enough to cause this kind of selling. That having been said, the VIX being where it is, there are no signs of full capitulation. You know throwing the baby out with the bath water and selling whatever you can when you can’t sell whatever you want to all work in the background but we are not beginning to see them fully perk up.
Let’s go through the numbers.
As we said, the VIX is not high enough to indicate a washout/selloff. It should have gotten up somewhere between 38 and 42. No such move so far. Keep your eye on the ten-year. If it pushes up to or through 3.50% that could send chills through equities.
The initial but very mild support in the S&P looks like around 3725, but we may have some further work to do. So, I would watch for the VIX perking up on any afternoon selloffs and see how high they can take them to give you a sense of at least a temporary washout in the 3725 in the S&P.
Let’s see how they can trade in the afternoon.
There is a chance that as we get to Wednesday, the Fed may actually try to accelerate the quantitative tightening since, I think, Powell does not want to go beyond a half point. So, he may try to sneak one it as it were. Other than that, I expect a half point and then a declaration that, data dependent, they could be 75 or 100 basis points in any of the upcoming meetings, but we will deal with Wednesday after we pass the Strawberry full moon tomorrow and see what influence, if any, that it has and see what the Fed is doing with its balance sheet.
Stick with the drill. Keep your eye on the newsticker and keep your seatbelt fastened and try to stay safe.
Gold & Silver
Graddhy out of Sweden: Always remember that gold & silver are the counterweight vs the whole global fiat monetary system. When one understands that, it also becomes clear that it will not be an easy ride for obvious reasons. And still gold has produced some of the best TA ever seen the last 20 years.
Also of importance…
OUTCROP INTERCEPTS 1.85 METRES OF 7,609 GRAMS SILVER
Outcrop Silver & Gold Corp. has released additional results from Las Maras target, including drill intercepts of 1.85 metres of 7,609 grams silver equivalent per tonne, including 0.54 metre of 11,927 grams equivalent silver per tonne, and 4.69 metres of 909 grams silver equivalent per tonne. These intercepts represent the highest-grade and thickest intercepts respectively drilled on Santa Ana to date. Las Maras remains open along the surface and at depth.
- New results reported for Las Maras provide both the thickest and the highest-grade (by grams x metres) drill intercepts to date on the Santa Ana project.
- 1.85 metres of 7,609 grams equivalent silver per tonne, including 0.54 metres of 11,927 grams equivalent silver per tonne intercepted.
- 4.69 metres of 909 grams equivalent silver per tonne intercepted.
- New Las Maras shoot is the eleventh shoot discovered at Santa Ana and is a kilometre step out south from the San Antonio shoot along the Royal Santa Ana vein system .
- Veins are inferred to widen as drilling moves south in the system which is open to the Frias and Porvenir mines, 10 and 15 kilometres to the south respectively.
“The results from Las Maras provide our best drill intercepts in terms of both thickness and grade to date on the Santa Ana project. Outcrop believes this is an indicator of significant upside to the quality of discoveries on Santa Ana,” comments Joseph Hebert, Chief Executive Officer. “We have eleven high-grade shoots that accumulate over 2.8 kilometres length of potential resource areas to include in a compliant resource before the end of 2022. Also prioritized targets are being generated and drilled within an area twice the scale of that drilled on to date.” Outcrop Silver & Gold, symbol OCG in Canada and OCGSF in the US.
***To listen to Alasdair Macleod discuss the surprises he expects this summer in the gold and silver as well as global markets CLICK HERE OR ON THE IMAGE BELOW.
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