One is the star of the year so far, grinding higher in what could be the launch phase of a new bull market as confidence wanes in the face of NIRP and other desperate global policy actions, and the realization that this disgraceful policy designed to spur speculation and asset price appreciation is all policy makers have got left in their bags of tricks. The endgame is a bag with a hole in it; a monetary black hole.
The other grinds on in what could be the last significant hope replenishing bounce before new downside is explored. Various US and global indexes are already in bear markets but casino patrons are trained to look at the S&P 500, Nasdaq 100 and Dow as “the stock market” and these have not yet gone ‘bear’. If the current bear-trend bounce fails however, that confirmation would be coming promptly.
The comments above are verified by the charts of gold vs. the S&P 500 and the Euro STOXX 50. The bullish move and current consolidation are representative of all major stock markets. This is a trend change in gold vs. stocks (joining gold vs. commodities, which turned up long ago).
Continue reading “Gold, Stocks and the Miners”