With gold and silver surging, the Nasdaq breaking below 7,500 and the Dow close to breaching 24,000, is the correction in the metals finally over?
Is The Correction In The Metals Over?
By Bill Fleckenstein President Of Fleckenstein Capital
July 3 (King World News) – The indices were sort of mixed through mid-session (the market closed at 1 p.m. Eastern today), with the S&P and Dow slightly higher and the Nasdaq similarly lower. Not that the distinction means much…
NEW KEITH NEUMEYER INTERVIEW:
Keith Neumeyer spoke with KWN about $8,000 & $10,000 price targets for gold and much more, to listen immediately CLICK HERE OR ON THE IMAGE BELOW.
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The Rockets’ Red Glare
But with about 90 minutes to go the downside fireworks began, as a Chinese court banned Micron from selling chips. (I suspect this is the form of retaliation we will see from them as trade frictions intensify, and if I were Apple I’d be worried.) After that news hit the market flipped over, led south by the Nasdaq, which lost almost 1%.
Away from stocks, green paper was a little weaker, oil was a nonevent, fixed income was higher, with the long end quite strong, and the metals recovered a decent portion of yesterday’s losses, with both gold and silver rallying about 1%. Once again, the miners were very strong.
Just Need to Check the Timing
A reasonable case can be made that the recent metals correction is over. On the other hand, I would be less than honest if I didn’t admit that I’ve thought that a couple of times already. Nonetheless, the strength of the miners has been quite impressive and, as I noted last week, this sort of action argues for higher prices.
Included below are two questions and answers from the Q&A’s with Bill Fleckenstein.
Real World Inflation
Question: I just noticed for the first time since I can remember a very sudden bunch of price increases for some common things/services.
Oil change 16.67%
Air Filter 25%
Haircut 11%
Supplements 8%
Lawn mowing 8%
Answer from Fleck: “The question is, when does psychology change regarding inflation?”
BULL SIGNAL: Miners Up, Gold Down
Question: Hi Bill….Per Friday’s rap, the area around Q1 2001 was miners up gold down. That marked the start of a great run in the precious metals sector.
Answer from Fleck: “Thanks for the data.”
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ALSO JUST RELEASED: Chaos In China…This Is What’s Really Happening CLICK HERE TO READ.
To listen to the powerful KWN audio interview with Bill Fleckenstein CLICK HERE OR ON THE IMAGE BELOW.
KWN has also released the powerful audio interview with Gerald Celente discussing what will cause the price of gold to soar, the top trend for the back half of 2018 as well as what surprises to expect and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
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