You name it, it got hammered today. Oil, gold and silver, bonds, stocks and Bitcoin all took a tumble today. Let's delve a little further to see what happened.
Apparently, according to a Zero Hedge article, Nick Timiraos, nicknamed 'FED Whisperer' basically said that rates are going higher and for longer. The talk since last October's 75 basis point hike was that there would be 'soft pivot'. Instead of another 75 basis point hike, it'll 'just' be 50 basis points. I didn't go deep into what Timiraos actually said simply because I didn't want to waste my time.
I already know rates are going up. I've listened in on some fascinating interviews with some very intelligent people and most of them are saying the same thing, that the FED will do everything it takes to save King Dollar and therefore, rates are going up. Those who follow me know that from recent posts, I've presented clear evidence a rate shock is on the way (Re; Mike Maloney - "Brace for impact").
I hope I'm wrong, really. Yet, the math says that interest rates must go higher than the inflation rate in order to tame inflation. Anyways, today investors got spooked by those comments by Timiraos and the reaction pretty clear. Have a look at gold...
It looks like a big drop doesn't it? Don't be fooled. It's actually a very small drop and I expect a quick recovery as we head into the Christmas shopping season. A lot of gold and silver is sold during the holidays. I do think this drop is only 'transitory' (Cue laugh from audience). An article on Kitco News states that Bloomberg Intelligence points to gold as top commodity performer in 2023.
But Poor silver. It got hammered down more than a dollar an ounce, after a meteoric rise just last Friday. Again, this is only 'transitory' (It's another buying opportunity. Back the truck up!). SweptOverNiagara Intelligence points to silver as top commodity performer in 2023! It was in the $17 range back in September. It's still up $4.50 since then.
The USD Index improved a bit. It was at 104.5 on Friday and at time of writing is at 105.28, a modest increase but nevertheless, it's clear the dollar benefited from today's little rout.
WTI Crude Oil was at about $80 through the weekend but suddenly spiked to $82.50 before suddenly joining the club and tumbling down to just below $77. It's holding at $77.34 and it looks to pause in the $77.50 range. Let's enjoy the break at the pumps a little while longer.
Bitcoin behaved similarly to oil. It too initially jumped higher. Bitcoin touched a high of $17,409 in the last 24 hours before falling to a low of $16,879. It's since recovered a bit and presently sits at $16,942.
I think the big deal today is the S&P 500 which broke below its 200 day average. I think we're finally really starting to see the effects of the first rate hikes from last spring. Using classical terms, we've been in recession for months. I have a feeling we'll be in an official recession soon.
There's more going on. Sometimes, it's really hard to keep up with all the information that's coming through. I've placed links in the references section for your perusal.
Peace and Love to everyone.
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Check out some of my previous posts.
Gold has broken 200 day moving average, a bullish sign.
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USAWatchDog's Greg Hunter interview with Jim Rickards.
194 million ounce deficit to push silver prices higher?
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Stolen Mt. Gox Bitcoin resurface after 7 years.
Central banks considering revaluing gold?
Mike Maloney - 'Fasten your seat belts and brace for impact'
