Big US Stocks’ Q1’18 Fundamentals

By Adam Hamilton – Re-Blogged From http://www.Gold-Eagle.com

The mega-cap stocks that dominate the US markets are just wrapping up a truly-extraordinary earnings season. Naturally this first quarter under Republicans’ new corporate tax cuts fueled surging profits. But sales were up big too, which is no mean feat for massive companies. With sustained growth at this torrid pace impossible, peak-earnings fears are mounting. And valuations stayed extremely expensive exiting Q1.

Four times a year publicly-traded companies release treasure troves of valuable information in the form of quarterly reports. Required by the US Securities and Exchange Commission, these 10-Qs contain the best fundamental data available to investors and speculators. They dispel all the sentimental distortions inevitably surrounding prevailing stock-price levels, revealing the underlying hard fundamental realities.

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Gold Nearing Bull Breakout

By Adam Hamilton – Re-Blogged From http://www.Gold-Eagle.com

Gold remains largely forgotten, off the radars of most investors. But that’s likely to change soon as this leading alternative investment is nearing a major bull breakout. Once gold climbs to decisive new bull-market highs, sentiment will turn and investors’ interest will surge. Their resulting buying will rapidly drive gold higher, attracting in more capital inflows. Gold is only a couple modest up days away from that key breakout.

Universally in all markets, traders’ psychology is completely dependent on price action and levels. When prices are high and rising, speculators and investors alike eagerly buy in. They love chasing winners, so buying begets buying. This creates powerful self-reinforcing virtuous circles, with rising prices helping to entice in ever-more traders. In recent years this dynamic catapulted the market-darling FANG stocks higher.

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New Silver Bull Coming

By Adam Hamilton – Re-Blogged From http://www.Silver-Phoenix500.com

Silver has been dead money over the past year or so, relentlessly grinding sideways to lower.  That weak price action has naturally left this classic alternative investment deeply out of favor.  Silver is extremely undervalued relative to gold, while speculators’ silver-futures positions are extraordinarily bearish.  All this has created the perfect breeding ground to birth a major new silver bull market, which could erupt anytime.

Silver’s price  behavior is unusual, making it a challenging investment psychologically.  Most of the time silver is maddeningly boring, drifting listlessly for months or sometimes years on end.  So the vast majority of investors abandon it and move on, which is exactly what’s happened since late 2016.  There’s so little interest in silver these days that even traditional primary silver miners are actively diversifying into gold!

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Gold Upleg Breaking Out

By Adam Hamilton – Re-Blogged From http://www.Gold-Eagle.com

Gold’s strong upleg accelerated this week, powering to major new breakout highs. Speculators rushed to buy gold futures following surprising weak-dollar comments from the US Treasury Secretary, which hit the US dollar hard. That boosted gold to critical technical levels that should really intensify the shift back to bullish psychology. This mounting gold breakout confirms gold’s bull market is very much alive and well.

While this week’s surge put gold on many more traders’ radars, it has actually been picking up steam for 6 weeks now. Gold’s latest major interim low of $1242 came a couple days before the Fed’s latest rate hike in mid-December. The gold-futures speculators who dominate this metal’s short-term price action have always had a deep and irrational fear of Fed rate hikes. Historically gold has thrived in rate-hike cycles!

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Irrational Exuberance In US Stock Market Grasps At 20K For Dow Index

By David Haggith – Re-Blogged From Great Recession Blog

Since Trump’s election, the US stock market has climbed unstoppably along a remarkably steep path to round off at a teetering height. Is this the irrational exuberance that typically marks the last push before a perilous plunge, or is the market reaching escape velocity from the relentless gravity of the Great Recession?

This burst of enthusiasm in response to Trump’s victory, flew in the face of almost everyone’s predictions. That it lifted the market from seven months of languor certainly makes 20K on the Dow look like the elevation marker of a breathtaking summit.

While breaking 20k, if it happens, may be as meaningless as one more mile on the odometer when all the numbers roll over, it is psychologically potent for many. Breaking through it, could cause fear as eyes turn down and see how far below the earth now is, or the rarified air up here may bring euphoria that lifts the market to even greater levels on a rising current of hot air.

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