1.   For the past few weeks I’ve suggested that a modest US dollar rally against the yen (and thus gold) was due, and now it’s here.

2.   Please click here now.  Double-click to enlarge.  The dollar’s right shoulder rally fits with the US senate’s decision to finally pass some corporate tax cuts.  That’s modestly good news for “risk-on” investors.

3.   It’s modest because it comes at a late stage in the business cycle.  Many institutional money managers are trimming US stock market holdings.  They are investing the proceeds into key Asian markets where corporate profits are rising but P/E ratios are lower.

4.   Please click here now.  This is typical market action in the late stages of the US business cycle; the Dow stocks keep rallying, and the growth stocks stumble.

5.   Please click here now. I’m pretty comfortable with my Chinese stock market holdings.  If there is a crash, I’ll simply buy more and urge savvy investors to do so too.

6.   Please click here now.  In the big picture, American citizens are outnumbered by Asians.  There are about eight Chindians for every American. 

7.    Cars are turning into moving offices.  Business owners will be happy to sit in rush hour in their electric self-driving cars, because they will be able to work. 

8.   Many workers will get paid the moment they leave their house and start their car engines.  They will work in self-driving company cars on the way to their workplace. 

9.   Car accidents should decline by 95% or more.

10.        Please click here now.  Gold is in “mellow” mode here, but some (Western) investors are disheartened.

11.        New surveys show that institutional money managers now expect three rate hikes in 2018, yet gold barely swoons on the news.  In India and China, investors buy gold in both good times and bad.  Rate hikes are viewed as almost irrelevant to gold price discovery. 

12.        Price discovery continues to move from the West to the East, and that means rate hikes will soon become even more irrelevant to gold than they are now. 

13.        I expect a surge in private equity deals as rate hikes cause institutional investors to look outside of the US stock market arena for capital gains. 

14.        Tax cuts are inflationary and good for small business.  The new Fed chair stands ready to chop the red tape that has handcuffed small bank lending.

15.        Regardless, just as wise equity market investors hold gold as a hedge, gold investors should hold some alternative assets as their hedge.

16.        Please click here now: http://www.graceland-updates.com/images/stories/17dec/2017dec5alt1.png  Double-click to enlarge.  Litecoin is a great hedge, especially for gold stock investors who can handle some market volatility.

17.        Litecoin is my third largest blockchain currency holding.  It’s soared from about $1 to $100 in a very short period of time.  My long term target is $1200 per coin. 

18.        If it hits the target, that would make it a “twelve hundred bagger”.   Gold stock investors who need some blockchain currency to diversify can use my wealth building www.gublockchain.comnewsletter to get started.

19.        Please click here now.  GDX continues to consolidate in the $25 – $21 price zone. 

20.        The market feels solid, but gold stocks are well below their February high, while gold bullion sits near the levels it acquired then. 

21.        It’s disappointing that the market has not rewarded shareholders for backing companies that have achieved significant cuts in AISC (all-in sustaining costs).

22.        In a perfect world, GDX would be trading at about $30 (or higher) right now.  Unfortunately, it’s not a perfect world.  The good news is that from a technical perspective, the odds of a move above $25 to $28 are about 67%, while the odds of a move under $21 to $18 are about 33%.

23.        GDX and associated gold stocks are quite firm given that strong Chinese New Year buying has yet to commence.  That buying should start soon after the Fed’s next rate hike.  In this hiking cycle, gold has staged fabulous rallies after almost all the hikes. 

24.        Will the next rally be the biggest of them all?  Perhaps, but if it happens, only investors with substantial “skin in the gold stocks game” will get to smile!

Special Offer For Website Readers:  Please send me an Email to freereports4@gracelandupdates.com and I’ll send you my interesting “Golden Cakes & Steaks” report!  Uranium & lithium stocks are must-own assets for gold stock enthusiasts who want to diversify while getting richer.  I cover key uranium, lithium, and junior gold stocks in this report.

Thanks and Cheers

Stewart Thomson, Graceland Updates

https://www.gracelandupdates.com

Stewart Thomson is a retired Merrill Lynch broker. Stewart writes the Graceland Updates daily between 4am-7am. They are sent out around 8am-9am. The newsletter is attractively priced and the format is a unique numbered point form.  Giving clarity of each point and saving valuable reading time.

Risks, Disclaimers, Legal

Stewart Thomson is no longer an investment advisor. The information provided by Stewart and Graceland Updates is for general information purposes only. Before taking any action on any investment, it is imperative that you consult with multiple properly licensed, experienced and qualified investment advisors and get numerous opinions before taking any action. Your minimum risk on any investment in the world is: 100% loss of all your money. You may be taking or preparing to take leveraged positions in investments and not know it, exposing yourself to unlimited risks. This is highly concerning if you are an investor in any derivatives products. There is an approx $700 trillion OTC Derivatives Iceberg with a tiny portion written off officially. The bottom line:

Are You Prepared?

1. The traditional post jobs report rally for gold is in full swing.  Please click here now. Double-click to enlarge this daily gold chart.  Gold arrived at a key Fibonacci line at about $1268 as the US jobs report was released.
2. Please click here now.  Double-click to enlarge.  The dollar has stalled against the yen, and that’s also good news for gold.
3. Gold tends to stage great rallies in the days following the jobs report, and this rally is a particularly interesting one.  Here’s why:
4. First, Trump has ratcheted up his “hawk talk” in regards to North Korea and Iran.  He’s scheduled to make a key speech on Thursday about Iran, a country which is now exporting two million barrels of oil a day.
5. Second, the Chinese government recently chopped commercial bank reserve requirements.  That triggered a massive rally in bank stocks around the world, and in most stock market indexes.
6. Chinese citizens tend to buy more gold when stock markets are rallying and economic sentiment is positive.
7. Friday also marked the last day of COMEX gold trading during the Golden Week holiday in China.  Chinese gold markets are now open again, and eager buyers are clearly in action.
8. Perhaps most importantly of all, on Friday the Indian government cancelled the “Know Your Client” rule for gold jewellery buyers and that happens just in time for the launch of Diwali.
9. Please click here now. This is pretty big news for gold price enthusiasts around the world.
10. Given all of this gold-positive news, it’s pretty easy to understand why gold has bounced so firmly from the $1268 area Fibonacci line.
11. Fundamentally, there is nothing negative for gold right now.  Gold has rallied after every rate hike.  It did that in the 1970’s as the Fed Funds rate soared to 20%.  The precious metals and the mining stocks soared like a flock of golden eagles as that happened, and 2018 could see that repeated, albeit on a smaller scale.
12. The Fed has three rate hikes scheduled for 2018, and aggressive quantitative tightening (QT).  By December of 2018, money velocity should reverse and begin a long term bull cycle.
13. The QE money ball is essentially “toast”.  Bond prices will get a haircut as rates rise and QT accelerates.  Money will pour out of government bonds and central banks and into the fractional reserve banking system, and… into gold.
14. Please click here now.  Central banks and governments have not propped up their economies since the 2008 financial crisis occurred.
15. What they have done is prop up financial markets while insidious inflation and no wage gains on Main Street have seen the plight of the average citizen get worse.
16. That can change.  Please click here now. Donald Trump’s three main campaign promises were to cut taxes, chop the price of the US dollar against other fiat currencies, and to give government bond market creditors a haircut.
17. His promises are essentially a mechanism to move a portion of the fifteen trillion dollars in financial markets liquidity towards Main Street.  He has yet to do that, but I think 2018 will probably be recorded in history books as“The Golden Year”.
18. I’m predicting that 2018 will be the year that Trump begins talking more openly about the bond market and the need for creditors to be realistic about what they can expect to get paid.
19. Along with the “motherlode” of positive demand coming out of China and India, Trump’s actions and words should help make 2018 the year that gold ends its sideways trading pattern of the past three years, and starts a significant trending move higher.
20. Please click here now. Double-click to enlarge this fabulous silver chart.  There’s a beautiful inverse head and shoulders bottom formation in play, with an ultimate target in the $22 area.
21. Please click here now. Double-click to enlarge this key GDX chart.  GDX has started a strong rally.  All fundamental lights are green for the entire precious metals asset class.
22. Most technical lights are green, except for one.  Please click here now.  Double-click to enlarge.  My “line of concern” at $1300 relates to the head and shoulders top neckline that gold is rallying towards now.
23. The technical target of that pattern is about $1215.  Whether the “Queen of Assets” can successfully surge through that neckline area is likely to be determined in the short term by Trump’s speech on Thursday about Iran.  In the medium term, it will be determined by the amount Diwali gold demand that appears (or doesn’t) over the next two weeks.
24. Tactics?  Nervous investors should buy put options and buy them today!  On the buy-side, the key for gold bugs is to be light buyers of all their favourite precious metals investments if gold trades at $1270 and to be substantially bigger buyers at $1215 or lower.  Do that, while cheering that the price only goes higher!

Thanks

Stewart Thomson

Graceland Updates

Stewart Thomson is a retired Merrill Lynch broker. Stewart writes the Graceland Updates daily between 4am-7am. They are sent out around 8am-9am. The newsletter is attractively priced and the format is a unique numbered point form. Giving clarity of each point and saving valuable reading time.

Risks, Disclaimers, Legal

Stewart Thomson is no longer an investment advisor. The information provided by Stewart and Graceland Updates is for general information purposes only. Before taking any action on any investment, it is imperative that you consult with multiple properly licensed, experienced and qualified investment advisors and get numerous opinions before taking any action. Your minimum risk on any investment in the world is: 100% loss of all your money. You may be taking or preparing to take leveraged positions in investments and not know it, exposing yourself to unlimited risks. This is highly concerning if you are an investor in any derivatives products. There is an approx $700 trillion OTC Derivatives Iceberg with a tiny portion written off officially. The bottom line:

Are You Prepared?