Dow tumbles again as gold and oil rally but this is maddening.
This Is Maddening
November 15 (King World News) – Here is what Peter Boockvar wrote today as the world awaits the next round of monetary madness: As just a spectator, this negotiating drama in the UK is hugely maddening. The British pound is getting smoked and all one has to do is watch its movement to know which way the wind is blowing in the negotiations and now with minister resignations…
Gold is making its way back into the global monetary
system, to learn more CLICK HERE!
We now await a Cabinet vote, to be followed by Parliament if it passes. Gilts are rallying sharply with yields dropping. The 10 yr yield is lower by 10 bps and the 2 yr is down by 7 bps. The FTSE 100, the usual beneficiary from pound weakens, is only up a touch.
UK retail sales in October ex auto fuel missed expectations with a .4% m/o/m decline vs the estimate of up .2%. The y/o/y gain of 2.7% was still good but slowed to the lowest pace since April. Weakness was seen in household products and apparel. The ONS also blamed weather in that it was too good as people held off buying winter clothes on the mild Fall. Obviously for markets this data is irrelevant today and the focus lies elsewhere.
Stock Market Sentiment
The stock market sentiment of the individual investor according to AAII went back to the “I have no idea” category with Bulls and Bears at a standoff at pretty much the same level. Bulls fell 6.2 pts to 35.1, Bears rose by 4.8 pts to 36.0. The balance are Neutral. Bottom line, as I’ve stated before, in this particular survey I only look for extremes in telling me which way the contrarian mood should really lean.
Australia & China
Australia, always a good watch for gleaning clues on the Chinese economy, reported a better than expected jobs number for October. Jobs grew by a net 32.8k, above the estimate of up 20k and all due to an improvement in full time jobs. The unemployment rate held at 5% and the participation rate improved to 65.6%. The Aussie $ is rallying in response and is just off a 2 month high vs the dollar. As I mentioned yesterday, in saying the US dollar is strong or weak right now is too vague of a comment as it’s traded well the last two months against some and not so well versus others.
China Opening Up Its Markets
With China, foreign direct investment rose 7.2% y/o/y in October ve 8% in September but still a pretty good performance. Any business with a long term time horizon knows that investing in China is crucial and all the current short term issues are irrelevant in that decision making. China has also taken steps to open up its markets allowing foreign companies to take majority stakes in joint ventures in financial service firms and auto’s. The South China Morning Post is also reporting that a Ministry spokesman said:
“The ministry was coordinating with Shanghai to expand the country’s first pilot free trade zone in an attempt to draw in more foreign investment.”
The Shanghai comp did rally for the 3rd day in the past 4 and is at a 2 week high. The good numbers from Tencent yesterday helped sentiment.
Also of importance…
Eric King: “John, your company had a huge news release today.”
John Awde: “Yes, Eric. It’s extremely rare to find mineralization that is shallow, high-grade oxide with an emerging high-grade sulfide zone at depth. The bottom line is we haven’t found a limit to the Dark Star system yet. Last year, Eric, when we were drilling on the north side and at depth, we thought we had it figured out, but now we are finding thick zones of contiguous high-grade oxide in all directions.
What’s interesting about what we’re seeing at depth is that the oxide is thicker than what we anticipated, and underneath the oxide, as is consistent with a lot of legendary Carlin deposits, we’re getting into and seeing an emerging sulphide zone. That is a classic characteristic of a major Carlin gold system. What we are seeing at Dark Star is what was mined 25 and 30 years ago — a combination of high-grade oxide and recoveries. We have 5 rigs turning as we speak, so expect more results from Dark Star as well as our emerging new targets. And, Eric, we feel like we have only just scratched the surface of what could be a monster Carlin gold deposit.” Gold Standard Ventures, symbol GSV in Canada and the US. To read today’s press release CLICK HERE.
***KWN has released the remarkable audio interview with London whistleblower Andrew Maguire and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
ALSO JUST RELEASED:ALERT: Celente – Prepare: Global Market Shock Is Coming CLICK HERE TO READ.
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