Friday, November 14, 2014

Some week-ending news

Hasn't been much to write about, til today and the gold resurgence.

Speaking of which - you can tell gold has bottomed when that clown Ritholtz is repeating anti-gold links in his morning roundup every single day.

Here's the news:

Calculated Risk - awesome consumer sentiment. Look at this chart:

And as you can see above, consumer sentiment can still rise a hell of a long way further before it reaches 1997 levels. And that's why I keep saying we're in a secular bull market until proven otherwise.

Bespoke - how is Under Armour like Chipotle? Two different companies, yet their stocks move exactly in tandem. Why? The Bespoke guys will let you in on a secret about the market:
[...] it is worth thinking about why there's any relationship between the two names at all. The similar moves off of earnings are certainly a factor, but even more interesting is how each responds to broad market conditions. Both are revenue-growing darlings of the momentum trade. Their marginal investor is similar, and they trade in a very similar way every day. So while the apparent correlation isn't actually a real relationship, we do think that it's worth remembering that no stock trades in isolation: they're all exposed to the broad market, and stocks that are held by similar investor types often react to broad market conditions in similar ways.
In other words, they appear on the exact same checklist at the hedge funds. That is all it is, and that is why fundamentals never matter as much as anyone thinks they do.

IKN - 5-year chart of LME copper stocks. The 3 people here who don't already follow IKN should look at this:

Cos, limited data set that it is, the chart nevertheless shows no region where copper stocks remained constant for 6 months before resuming a previous trend. So this is likely the turning point right now, whatever that means.

Can you think of any reason why a country still modernizing and growing at 7% per year would stop buying copper, anyone? Hm?

CNN - ISIS announces new currency. Behold, goldbugs!:
ISIS is planning to mint its own currency in gold, silver and copper, the group said Thursday.

Its aim is to stay away from the "tyrant's financial system," ISIS said in a statement. It said it would issue another statement to explain the new currency's exchange rate, and where it can be found.

The currency will include seven coins: two gold, three silver and two copper.

The move is "purely dedicated to God" and will remove Muslims from the "global economic system that is based on satanic usury," ISIS said.
Hooray! Now when we buy gold and silver we can say we're fighting Satan! I can't wait til Kitco has these for sale on their website! So get your thumb out your ass, Alex, and get us some ISIS gold and silver coins to buy!

You have to admit that gold and silver coins look fuckin' sexy:

Any of those White-ass crackers in Wall Street wanna speculate on how much the price of gold and silver change with a few hundred million dollars' worth of demand coming onstream the minute they figure out how to mint coins?

1 comment:

  1. Where are these ragtag terrorists going to mint this stuff, exactly?