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  • Finance 0

    Gold And Silver Shine As The Fed Cuts Rates: What’s Next?

    When the Federal Reserve decides to slash interest rates, it sets off a domino effect in the financial world, and precious metals like gold and silver are among the first to feel the impact. Yesterday, we saw a 0.50% cut, so it’s time to revisit how these metals have historically performed… and let’s just say, they’ve put on quite the show. The Golden (and Silver) Truth About Fed Rate CutsSince 2000, gold and silver have shown a knack for appreciating when the Fed cuts rates by a full half percentage point. Here’s a look at how they’ve danced to the Fed’s tune: Gold’s Performance 3 Months After a Cut: Gold struts to an ave...
    On September 20, 2024 / By
  • Finance 0

    The Quick And Dirty Economic Indicator Says: Not Even Close To Recession

    There are some economic and financial indicators that aren’t classic leading or lagging indicators. Rather, they are “over-sensitive” in one direction or another. Two good examples are heavy truck sales and the unemployment rate: they are over-sensitive to the downside: they lead going in to recessions, but lag coming out.The S&P 500 stock market index fits in this category as well. The classic aphorism is “the stock market has predicted 9 of the last 4 recessions.” But the converse is not true. With the stellar exception of 1929, when stocks themselves were in a bubble, if the market makes a new high, it’s almost a sure bet ...
    On September 20, 2024 / By
  • Finance 0

    Port Strike Will Rise Food & Energy Prices Exponentially – The Corn & Ethanol Report

    We kickoff the day with Baker Hughes Oil & Total Rig Counts at 12:00 P.M., Fed Harker Speech at 1:00 P.M., Cattle on Feed and Milk Production at 2:00 P.M. The Fed lowered its interest rate target by 50 basis points on Wednesday, the largest cut since the start of the pandemic in March 2020. Prior to the start of the pandemic, the last rate cut, which was in December 2018. Fed Chairman Powell repeatedly tried to assure the press that the US economy is strong, which begs the question, “Then why such a large rate cut?”. But the answer, of course, is without massive government spending, the “official” recession indicator, GDP, would ...
    On September 20, 2024 / By
  • Finance 0

    The Energy Report Fed Fighters – Friday, September 20

    Oil traders historically have had a bad time when they have tried to fight the Fed. The Federal Reserve’s 50 basis point rate cut along with a dot plot that says there are more to come should have hedge funds think twice before pressing the downside in this environment. That is not to take away from the hedge funds ability to influence prices on big, short-term price moves like they did on this recent manic Labor Day holiday crash, But history now is against them making that a massive speculative short play more dangerous.   Fed rate cutting cycles have eventually always led to higher oil prices.The reasons for that is clear. The Fed cuts...
    On September 20, 2024 / By
  • Finance 0

    Government Dysfunction Is Back On The Calendar

    The federal government’s fiscal year ends on September 30, and with it, a budget extension is needed to keep the government running beyond that date. Accordingly, as seems to be the norm, government dysfunction is back on full display. House Speaker Mike Johnson failed to pass a budget extension bill on Wednesday. Moreover, he doesn’t appear to have a plan B. While the threat of a minor shutdown is real, history has proven a high likelihood that a deal will be struck and a short-term patch will buy a month or two of funding before another round of government dysfunction rears its head.From an investor’s perspective, there are two potent...
    On September 20, 2024 / By
  • Finance 0

    Gold, Silver Or Equities

     No serious attempt to close the bullish gap yesterday, and triple witching ahead today into reasonably good S&P 500 market breadth. Bond woes that I telegraphed well before FOMC as knocking on the door, are affecting prior star performers of XLRE, XLP and XLU – clients were in the picture ahead of time, and the same applies to TLT as longer maturities show the rising yields pressure best (just as 10y yield highlighting the disconnect regarding short-term yields in the below chart). Remarkable array of winners features as well real assets with both precious and base metals moving up, and oil belatedly joining, making it to the top area...
    On September 20, 2024 / By
  • Finance 0

    AUD/USD Price Forecast: Continues Posting Green Candlesticks As It Pushes Higher

    AUD/USD keeps posting green candlesticks as it steadily creeps higher. The pair hit a new 2024 high of 0.6839 on Thursday and although there is not much spare room left above until it touches the long-term range high at 0.6870, the trend is short-term bullish, so it’s quite possible it could continue higher. AUD/USD Daily Chart  The Aussie is showing mild bearish divergence with the Relative Strength Index (RSI) momentum indicator (red dashed lines on chart above). This occurs when the price reaches a new high but the RSI fails to. The non confirmation is a bearish sign and indicates mild underlying weakness. It suggests AUD/USD is at r...
    On September 20, 2024 / By
  • Finance 0

    Soybean Commodity Elliott Wave Technical Analysis – Friday, September 20

    Soybean Elliott Wave AnalysisThe soybean market is currently retracing within a long-term corrective structure that has developed since the peak in June 2022. While short-term upside potential appears likely, the overarching trend suggests that a significant sell-off is poised to resume, potentially driving prices toward the lows seen in 2020.Long-Term PerspectiveBefore the decline that began in June 2022, soybeans experienced a robust bullish impulse wave starting in May 2019, which propelled prices from approximately $806 to significant highs. However, over the past 26 months, the market has surrendered more than two-thirds of those gai...
    On September 20, 2024 / By
  • Finance 0

    Analytical Overview Of The Main Currency Pairs – Friday, September 20

    The EUR/USD currency pair Technical indicators of the currency pair: Prev. Open: 1.1111 Prev. Close: 1.1161 % chg. over the last day: +0.45 % The euro is trading near $1.12, the strongest in three weeks, benefiting from the overall dollar weakness after the Federal Reserve cut interest rates by 50 bps. The Fed also signaled additional rate cuts of 50 bps this year and 100 bps next year. The euro also posted moderate gains on Thursday amid hawkish comments from ECB executive board spokeswoman Schnabel, who said strong services inflation is keeping core inflation at a high level. Swaps discount the odds of a 25bp ECB rate cut at the October 17...
    On September 20, 2024 / By
  • Finance 0

    Solana Flies 12% To Reclaim $140, Is $160 Next?

    Solana (SOL) joined the recent crypto market pump after climbing 10% on Thursday. SOL’s price broke above a key resistance level, reigniting the bullish sentiment among investors and traders who believe the cryptocurrency is soon poised to reclaim higher targets. Solana Breaks Above Key Resistance LevelFollowing the highly anticipated US Federal Reserve (Fed) rate cuts, the crypto market rebounded 5% in the last 24 hours. Most cryptocurrencies have registered green numbers in the past day, recovering from their performance in the past few weeks.Solana, the fifth-largest cryptocurrency by market capitalization, regained momentum on Thursd...
    On September 20, 2024 / By