Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

SWOT Analysis: Rising Inflation Could Lift Gold Prices
By: Frank Holmes

Historical Repetition in the Precious Metals Arena
By: Michael Ballanger

Dr. Engelhardt: Economy Beholden to Fed Interest Rate Policy; Here's One Way Gold Could Reach $14,000+...
By: Mike Gleason

Why Silver Could Replace The Dollar
By: Hubert Moolman

In Next Crisis, Gold Won’t Drop Like 2008
By: Keith Weiner

Sentiment pitfalls, the gold edition
By: Steven Saville

Gold Season – Is This It?
By: GoldCore

Technical Scoop - Weekend Update August 19 2018
By: David Chapman

Bridging the ‘fourth turning’ with gold
By: Michael J. Kosares

Bitcoin: Landing Gear Engaged. Bottom Is Still a Process
By: Ryan Wilday

 
Search

GoldSeek Web

 
Warning: Three Major Bellwethers Are on Red Alert


 -- Published: Monday, 27 March 2017 | Print  | Disqus 

By Graham Summers

 

As we have repeatedly warned since mid-December, the “Trump trade” was based on hype.

 

This is not to say that President Trump will not succeed in generating economic growth… it IS to say that whatever growth is coming will do so in 2018 as opposed to the GDP growth of 5% that the market seemed to believe would be hitting in early 2017.

 

With that in mind, consider the following charts.

 

Freeport McMoRan (FCX) is a copper producer. As such this company is extremely tied to economic growth.

 

With that in mind consider that of the incredible 61% rally FCX staged post election night 2016, the vast majority of it 54% hit in November. Since that time, the chart went effectively nowhere with the exception of eking out a minor new high in January. And it has now unwound almost ALL of its election rally.

 

http://goldseek.com/news/2017/3-27gs/image002.jpg

 

As one of the largest courier businesses in the world, Fed Ex (FDX) is another economic bellwether in that its business is closely tied to economic growth.

 

Here again the story is the same: MOST of the chart’s gains came in November and since mid-December the chart has gone nowhere. FDX now has one last remaining line of support before the entire election rally move is unwound.

 

 http://goldseek.com/news/2017/3-27gs/image004.jpg

  

Machine manufacturing giant Caterpillar (CAT) is perhaps the single best economic bellwether on the market. And here again the story is the same: a massive rally in November, followed by four months of “going nowhere fast.” And once again, there is just a single line of support before the chart comes crashing down.

 

http://goldseek.com/news/2017/3-27gs/image006.jpg

 

Put simply, three of the most economically sensitive charts on the market are ALL warning that the Trump trade is in serious trouble. You can ignore them if you want… but smart traders are already positioning themselves for what’s coming.

 

Best Regards

 

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 


| Digg This Article
 -- Published: Monday, 27 March 2017 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2018



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.