Stocks closed at session highs today, with the S&P and Dow both gaining 0.6%, followed by 0.2% gains in the Nasdaq and Russell 2000.
For most of the day, the S&P traded slightly above its flat line, until buyers stepped in late in the session on no specific news. The market continues to withstand lingering U.S.-China tensions and virus concerns.
Biotech has been chilling out ever since both IBB and XBI hit massive Fibonacci resistance levels on Monday.
Gold and silver saw more breakouts today. There was a very limited late day swoon in the metals but then they managed a rally to close on the highs of the day. Today the world has $110 trillion of debt, in 2018 it stood at $35 trillion. So it’s not a wonder. Meanwhile, the percentage of bonds with negative yields continues higher.
Gold and silver year to date below. Gold is getting very close to those 2011 highs at $1900.
The reflationary trade is getting a little ahead of itself, but momentum can be a powerful thing.
The Scottish market strategist Russell Napier warns that investors should prepare for inflation rates of 4% and more by next year. The main reason: Governments have taken control of the money supply.
You would think that the gold and silver VIX (everything has their own VIX these days) would be imploding based on the action, but VXSLV and GVZ were up 43% and 34% today, so as gold and silver rise so does their volatility. Weird stuff.
Silver vs. silver volatility. The lower chart of silver volatility,( in purple) should be going the other way right?
The SPX has a gap fill up around 3330. That could be the next level. All-time highs would be about 60 points higher than that. It’s getting close.
We caught a stop on WB today which is a shame because the chart looked good. Its a China stock and they were heavy the last couple of days.
I told you the other day that the infrastructure names are setting up. Today I noticed the same in the aerospace and defence space. Keep you posted.
They are looking for laggards.