Stock Market and Precious Metals Charts - No Exit For Brexit - Bubblicious Disregard for Risks

British PM Theresa May's Brexit proposal went down to an historic defeat in Parliament today.

There will be a no confidence vot tomorrow but that seems largely perfunctory. No one wishes to sit in that hot seat, and there is a remarkable lack of popular counter-proposals to her plan.

There will be additional deliberations and votes this week. Hopefully the bickering and posturing will be put aside. The best part of the debates after the vote today was the amiable wit of the speaker of the House of Commons, John Bercow. 

Stocks managed to go out on the highs as signs of a dovish pause in US interest rate increases seemed to be in the air, especially based on commented by the Kansas City Fed's Esther George.

Seemingly at odds to this, the US Dollar moved higher, while gold and silver were commensurately off a bit.

There will be a stock markeet option expiration on Friday.  Let's see if the bubbly optimism of stocks will carry through until then.

We will be getting more individual company financial results now that we are in the reporting period again.   These may help to sway the markets in some direction, or not.

The market seemed to be shrugging off the results being shown by the financials thus far.

Mispricing risk is the new normal, apparently.   The assumption is that the stock market is now in hand and will be fine—  unless something startles it.

Have a pleasant evening.

Stocks and Precious Metals Charts - Setting the Stage - NEM Buying GG

Stocks opened lower today, amid risk concerns about the global economy.

Gold and silver moved slightly higher as the Dollar index was off a bit.

Stocks managed to come off the lows, and finished the afternoon trade just slightly lower.

Let's see if the equity markets are going to try and roll over here, or not.

As we enter earnings season the focus will start moving a bit more towards individual stocks.

Newmont Mining announced their intent to acquire Goldcorp to form one of the world's largest mining companies.

As the metals move higher expect more volatility and consolidation in the mining complex.

There will be a stock market option expiration on Friday.

Have a pleasant evening.

Annual Physical Gold and Silver Holdings In Trusts and Funds

"Gold has worked down from Alexander's time... When something holds good for two thousand years I do not believe it can be so because of prejudice or mistaken theory."

Bernard M. Baruch

Stocks and Precious Metals of Charts - Calm Before the Storms - Gold May Shine In 2019

"The corporate bond market has all kinds of problems. I think investors should use the strength of junk bonds that's happened as a gift and get out of them.  Corporate credit, as a percentage of GDP, has never been higher.

The leverage in the corporate economy is very bad, There's been a lot of buybacks — borrow money at low rates, buy back stocks — which of course, it's just turning the equity market into a CDO residual, an equity piece, that's getting thinner and thinner, riskier and riskier.

I think investors need to go to strong balance sheets.   Strong balance sheets are going to be the way to survive during the zigzag of 2019."

Jeffrey Gundlach


"Goldman Sachs Group Inc. is leading a pack of bullish voices cheering for gold.  The bank’s analysts led by Jeffrey Currie raised their price forecast for gold, predicting that over 12 months the metal will climb to $1,425 an ounce -- a level not seen in more than five years.  Bullion has benefited as rising geopolitical tensions fuel central bank purchases, while fears of a recession helped boost demand from investors seeking 'defensive assets,' they said."

Bloomberg, Goldman Predicts Gold Prices to Climb to Highest Since 2013

The beginning of January has gone a little better for the bulls than they might have imagined in the throes of the December declines.

Earnings results should start trickling in and this may help to provide some more rigor to stocks than the steady propping up of equities by the PPT.

Gold looks poised for a breakout, but it needs to break through that stubborn overhead resistance first. Until then its all just speculation.

It seems that Goldman just put out a bullish forecast for gold this year. No wonder they were taking all those Comex delieveries for their house account last year.

Need little, want less, love more. for those who abide in love abide in God, and God in them.

Have a pleasant weekend