If yesterday was a bloodbath, today was complete stomping on the corpse on whatever was left of the market. All one can do when they see the DOW down 1000 points in one day is say WOW!
Overall it was a bad day for gold, silver, dollar, oil and the stock market.
Here is the crazy part, and this happens from time to time but only for a short while; the dollar got crushed again.
With the stock market getting killed, how many of you still think a September rate hike is in the cards? I have been pointing to negative data all year long here (or click link below), wondering what the Fed and CNBC were seeing versus what I was showing. Now we know the truth. The data isn’t good, and neither are the odds of a rate hike come September.
I technically described that potential rate hike as a “credibility” move by the Fed. They can’t even get that right! And what are the poor analysis at CNBC saying with their special report? How is it their “experts” didn’t see the same data presented here? They too believed the Fed at their word when the Fed was clueless to begin with. Did CNBC’s special report do anything to calm the markets? Hardly. In fact, I took this snapshot of the CNBC news section on Sunday. They wanted you to know nothing was wrong with the markets and AVOIDED writing about the Friday smackdown and had a poll and one mention about Dow futures being down. The rest was right out of a USA Today News of the day, not what I would expect from a Financial website. .
Contrast that with tonights news from CNBC where it was a state of confusion, not direction.
Please note the article where Gartman admits to being wrong on oil, lol. And also not what Bob Pisani saying about the stock slide hitting ETFs. He doesn’t subscribe to our ETF Research Analysis where most of our calls had double digit returns today. Are we uncertain about the markets or did we lock in profit?
I have said over and over that I think gold will fall below $1,000 an ounce. This will bring silver down with it. Silver still acting like the industrial metals and gold trying to stay afloat. Mining stocks got hammered with the rest of the stock market.
You’ll see bear market articles come out in force now. Smart money I think is accumulating stocks. Not necessarily mining stocks mind you.
I also think the dollar will bounce and take us back over 100 and the Fed and CNBC may talk about raising rates one last time. Then my book will be release and I hope the timing is right before the top of the stock market and bottom for gold and silver. You’ll be informed right here and in my articles as to what I think. Thanks for reading and look forward to a good many years after we bottom in gold. In the meantime, buy the dips!
Doug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534
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