Hello MarketClub members everywhere. The University of Michigan released its preliminary index of sentiment for March and it increased to 97.6 from 96.3 in February. Americans are more satisfied than any time in the previous 16 years with the current state of their finances and the economy.
Chart courtesy of Bloomberg
Key levels to watch next week: Continue reading "How's Your Confidence?"
At the end of last month both metals finished the first move up of the second, larger leg breaking below the signal line support mentioned in my last February post. And in my previous post last week I showed you how gold could help silver traders to jump ahead of the crash as silver lagged behind the gold.
Today I am going to update the charts to see what’s going on there. And the first up is the 4-hour gold chart where I would like to share with you a zoomed in picture.
Chart courtesy of tradingview.com
I do not usually post lower time frame charts, but this time I made an exception to show you another example of both the perfect AB/CD segments’ work and the Fibonacci ratios involved in the complex structure of any move. Besides that, it's also a perfect work of trends. Continue reading "Gold & Silver: Half Is Enough?"
Hello MarketClub members everywhere. Fed Chairwoman Janet Yellen said last week that the central bank was prepared to raise interest rates at the March meeting unless something unexpected happens and that hasn't happened. A solid February jobs report certainly clears the way for the Fed to raise interest rates at its meeting next week.
The U.S. economy added 235,000 jobs last month, the Bureau of Labor Statistics said, adding the unemployment rate ticked lower to 4.7 percent. Payrolls came in a bit stronger than expected and the average hourly earnings accelerated to a 2.8% rate over the past year, the Labor Department said.
Key levels to watch next week: Continue reading "Solid February Jobs Report Clears The Way For The Fed"
Last week, both metals triggered the signal support lines described in my previous post, therefore we are now in another consolidation phase. Let’s be patient and let the market take a pause to see what shall be further. I will update the metals charts in coming posts.
Meantime, let’s refresh the gold/silver ratio chart to see what’s going on there. I prepared three charts for you, which highlight the current snapshot of the metals, the ratio’s updated outlook and the “Risk Appetite” chart for “dessert”. Bon Appetite!
Chart courtesy of tradingview.com
This 4H chart above shows the “moment of crash” of the metals. Gold topped on the 27th of February and then started to shape lower highs with the trajectory of those highs highlighted in black dashed falling trendline. But that wasn’t a case for mighty silver, which has made another two higher closes on the chart ahead of severe drop on Thursday. It couldn’t resist the bearish pressure anymore as gold broke below the 1st of March low on the second day of March. Continue reading "Gold/Silver Ratio: Extended Target Points At $3059 For S&P 500"
Last week, the price of one Bitcoin surged above $1,227, the price of an ounce of Gold. And the headlines soon followed, screaming, “Bitcoin worth more than Gold.” The implication, of course, that Bitcoin is the new Gold in the world. In reality, however, Bitcoin is hardly the “new” Gold, real or digital.
In arguing for Bitcoin’s allure, enthusiasts tend to fall back on one singular point; like real Gold, there is but a finite number of Bitcoin that could be mined (21 million to be exact). But that is hardly the case. Bitcoin’s allure is not a factor of its rarity, but rather its ecosystem. That ecosystem enables financial transactions between two parties, both anonymously, and at very low costs. The fact is that that ecosystem could be easily replicated with an alternative to Bitcoin. So, while the number of Bitcoins we can mine is limited, the amount of alternative ecosystems that could emerge for Bitcoin wannabes is not. In fact, even today, there are already 12 different alternatives to Bitcoin, including Litecoin, Peercoin and Primecoin.
However, there is one area in which Gold and Bitcoin have something in common and, unfortunately, for Bitcoin bulls, it is in their vulnerability rather than strength. Both Bitcoin and Gold do not pay interest like a currency, nor a dividend like a stock. And when interest rates rise the allure of Bitcoin and Gold quickly fades. Because, simply put, there are better alternatives. Continue reading "Bitcoin Is NOT The New Gold"
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