Stocks up 150 points today, silver had a good day. What a surprise

11 posts / 0 new
Last post
lilbromarky1
lilbromarky1's picture
Offline
Joined: 06/15/2011
Hat Tips: 2464
Posts: 292
Stocks up 150 points today, silver had a good day. What a surprise

I can't be the only person who notices that Ag does best during stock rallies?  I notice Turd links Ag to Crude or Gold.  I'm not going to dispute his logic, but in my opinion the link between Stocks and Ag is also undeniable.  Go back and look at a long term dow rally that includes 9-1-2010, and look at a long term silver rally starting 9-1-2010.  

If the stock market crashes silver is going to get destroyed for at least a few weeks maybe longer.  It wont be until the govt decides another round of stim that we'll see it rally back, in my opinion.

Lets not pretend this reality doesnt exist guys :)

The critical part of this is that if you wait for stocks to crash before buying in, you may not be able to even make purchases for 1 of 2 reasons

1.  You will have lost your job

2. There wont be any physical in the coin stores

Therefore, my analysis is to keep stacking but dont be surprised if we get stomped when the stocks finally take a nosedive. 

Edited by admin on 11/08/2014 - 05:09

__________________

Like my ideas? Check our blog at: http://backtobasicseconomics.blogspot.com/

Dr Durden
Dr Durden's picture
Offline
Joined: 06/14/2011
Hat Tips: 5371
Posts: 730
Risk on. .87 correlation

Risk on.

.87 correlation between the CCI and the S&P since we've crawled out of the hole in 2009

http://www.zealllc.com/2011/ccirisk.htm

And I agree, don't let a brief bear rally trick you into thinking it's here to stay. The casino will make its few hundred billion...only to throw it to the curb like yesterday's trash when they seem fit.

__________________

Got GIABO?

"It's called the American dream, because you have to be asleep to believe it." ~George Carlin

No1Hunter
No1Hunter's picture
Offline
Joined: 06/16/2011
Hat Tips: 1324
Posts: 144
Nice

Yes, i have been watching it.  Makes the 5 ASE I bought this morning cost just under a dollar over spot!  NICE!!!!!!

Dollar cost averaging!!!!!

Laurichmusic
Laurichmusic's picture
Offline
Joined: 06/15/2011
Hat Tips: 37
Posts: 27
Think long term

When purchasing physical, you have to remember that it's not about the short term but it's about bringing your personal wealth through the other side of the economic storm. You may get rich but ultimately you just want to survive. 

Dr G
Dr G's picture
Offline
Joined: 06/14/2011
Hat Tips: 17985
Posts: 2683
Fed pressor tomorrow (meeting

Fed pressor tomorrow (meeting today & tomorrow) let's see what flows forth from the mouth of the Bernank and how the markets react to it.

lilbromarky1
lilbromarky1's picture
Offline
Joined: 06/15/2011
Hat Tips: 2464
Posts: 292
re

Dr Durden wrote:

Risk on.

.87 correlation between the CCI and the S&P since we've crawled out of the hole in 2009

http://www.zealllc.com/2011/ccirisk.htm

And I agree, don't let a brief bear rally trick you into thinking it's here to stay. The casino will make its few hundred billion...only to throw it to the curb like yesterday's trash when they seem fit.

Hello, that looks like a really cool correlation but I'm not sure what CCI is?  Pardon my ignorance.  My google searches are showing CROWN CASTLE.   Again, I'm sorry  I didnt know what the ticker meant.

__________________

Like my ideas? Check our blog at: http://backtobasicseconomics.blogspot.com/

No1Hunter
No1Hunter's picture
Offline
Joined: 06/16/2011
Hat Tips: 1324
Posts: 144
Ultimate bartering item

Laurichmusic wrote:

When purchasing physical, you have to remember that it's not about the short term but it's about bringing your personal wealth through the other side of the economic storm. You may get rich but ultimately you just want to survive. 

That's way I also buy ammo and reloading supplies.  The ultimate bartering item.

lilbromarky1
lilbromarky1's picture
Offline
Joined: 06/15/2011
Hat Tips: 2464
Posts: 292
Sorry gents what is CCI?

Sorry gents what is CCI?

__________________

Like my ideas? Check our blog at: http://backtobasicseconomics.blogspot.com/

Dr Durden
Dr Durden's picture
Offline
Joined: 06/14/2011
Hat Tips: 5371
Posts: 730
Continuous Commodity Index.

Continuous Commodity Index. Dudes, read the article I linked to...it explains everything. 

Also tune into Trader Dan's blog as he talks about the "risk trade" quite often.

You can look at QE as nothing more than risk asset fuel. I think the markets are anticipating another Benicopter ride to new highs and traders are bidding it up early. So, risk on. Once he turns hawkish, risk off and everything falls apart...equities and commodities.

__________________

Got GIABO?

"It's called the American dream, because you have to be asleep to believe it." ~George Carlin

Jack-a-Roe
Jack-a-Roe's picture
Offline
Joined: 06/14/2011
Hat Tips: 1
Posts: 4
Great Article

Dr. D, thanks for the article.  So does the S&P make new highs on this rally, or do we stall at the 50 day and go short? 

lilbromarky1
lilbromarky1's picture
Offline
Joined: 06/15/2011
Hat Tips: 2464
Posts: 292
re

Dr Durden wrote:

Continuous Commodity Index. Dudes, read the article I linked to...it explains everything. 

Also tune into Trader Dan's blog as he talks about the "risk trade" quite often.

You can look at QE as nothing more than risk asset fuel. I think the markets are anticipating another Benicopter ride to new highs and traders are bidding it up early. So, risk on. Once he turns hawkish, risk off and everything falls apart...equities and commodities.

Thanks Tyler.  I didnt even see the link below your chart when I was reviewing your reply.  My mistake!  Reading link now.  Thank you!   1 Hat tip for you sir!

__________________

Like my ideas? Check our blog at: http://backtobasicseconomics.blogspot.com/

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Topic locked
Syndicate contentComments for "Stocks up 150 points today, silver had a good day. What a surprise"