Good morning from the Fun show in beautiful Tampa.
World equity markets take a breather today from the wild activity experienced earlier in the week. The Shanghai stock market today showed gains of almost 2 percent after the government lifted the circuit breaker rule and stepped in to stabilize the Yuan. I expect most believe this is only a Band-Aid approach to bring calm to the market. Ninety percent of the activity on the Shanghai exchange is retail investor activity. As the weekend approaches, the China retail investor is still very nervous knowing that the Government in the long run cannot control the direction of the market.
Gold down today after hitting a 9-week high yesterday. At the time of this report we see the dollar index higher and oil basically unchanged as the market awaits the job number at 8:30 eastern time.
Wall Street Gold traders feel a little better today, (not changing their bearish stance), but if world equity markets take another hit I expect a strong short covering rally to ensue. I believe if this happens it will be a confirmation to them that another Fed rate hike is not in the cards, no matter what these Fed presidents report on the business news channels.
Silver took her time to follow gold yesterday, but once she got started had a better day percentage wise than gold.
If you are looking for gold and silver this morning you find them hanging out on the street corner at 1100th and 14th Avenue. Stop by and say hello.
Have a wonderful weekend.
Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.