Tuesday, June 27, 2017

Could the Summer Solstice be signalling a warning to the stock market

With the Summer Solstice last week on June 21, could that have been an important date? Dennis Gartman thinks so.

"There has been a historical precedent for market turns of consequence to have taken place at or very near to solstices and equinox. We note further that in 1987 stocks peaked one month before the Fall equinox and completed their violent “crash” one month later. The 1976 top and 1978 bottom in the Dow were both within 2 weeks of equinoxes. In 1929… a year of true market ignominy… there was a minor “Crash” on March 25 hard upon the spring equinox and the Dow topped in early September of that year, two weeks before the autumnal equinox, while the London stock market crashed on the 20th of September, precisely on the equinox. History does not always rhyme, but it does tend to have meter. Be prepared. The “meter” is running."

Monday, June 26, 2017

OPEC has lost the war but we may get a large dead cat bounce in Oil

"He[Saudi Arabia's new crown prince, Mohammed bin Salman] understands that crude oil, over the course of the next 20 to 40 years, is going to be a worthless commodity.

I'll tell you one thing: in the long run, crude oil is heading egregiously lower.

We doubt that demand growth will accelerate sufficiently to break the current downward price momentum. So it may be a black swan for the oil industry itself, but it's a white swan or the economy in general."


Monday, June 12, 2017

Banks VS FANGS - Buying opportunity

The stock markets punished US tech stocks last week, and biggest tech names saw the worst of it. Apple, Alphabet, Microsoft, Facebook and Amazon — lost more than $97.5 billion in market value between the close on Thursday and the close on Friday.

Shares of Apple fell nearly 4 percent on Friday, while the other four companies fell more than 3 percent. However they are near the trend line supports and this may represent a wise buying opportunity.

According to Dennis Gartman,

"We have included the chart of the NASDAQ at the lower left of p.1 this morning, noting that the lows on Friday amidst sheer panic selling in the early afternoon took the Index to a trend line that we extend back to the lows of last July, although we show it only into the lows of mid-April of this year. It shall take courage on our part to believe that the bull market is still intact, but in fact it is. Thus, if the NASDAQ were to fall back toward 5675 or so today we shall have to be a buyer, for as Old Turkey would remind us, “After all, this is a bull market.” Further, a drop to 5675 shall only be a 3.8% correction from the peak. 
Finally, if the NASDAQ does test those lows, our urge shall be to own banking shares above all else for the banks did amazingly well on Friday, rising smartly even as the FANGSs were collapsing, predicated upon the Fed moving to tighten monetary policy at its meeting this week and thus widening net-interest income for the banks… the real driver of bank earnings. Regional banks, especially, may be best served, with the ETF soaring 3.1% on Friday and breaking out to the upside. Any periods of weakness this week are to be bought."


Monday, June 5, 2017

Bitcoin volatility is senseless and these things usually end in tears

The boom in the digital currency Bitcoin is extraordinary. Bitcoin has jumped about 150 percent just this year to trade at $2,445.20 on Friday Anyone smart or lucky enough to have bought $1,000 of bitcoins in July 2010, when the price stood at $0.05, would today now have a stash worth approximately $46 million. 

Here below is what Commodities King - Dennis Gartman makes of Bitcoin.

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