Market Update For November 14, 2016

TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

Market Update

A memorable and wild week is behind us. In my last report it was just an intuitive premonition that a big surprise might be upon us while the "facts" clearly spoke a different language. Now a change in this world has become tangible. Whether it is for the good or the worse will have to be seen. 

The most important insight to remember is that "nothing gets eaten as hot as it is cooked". Mr Trump definitely deserves a fair chance. Fair him in his deeds, and not in his words.

To understand the ugly election campaign take a look at this video from 2011. I think this is the exact moment Donald decided to show the world how wrong they are….

Now that the dust is starting to settle we can see financial markets that went berserk last week. While initially gold has been skyrocketing towards 1,335 USD, Trump´s win certainly was a disaster for the precious metals sector and accelerated the ongoing correction since early July.

Yet Gold´s trading volume last Wednesday was the highest in CME gold history. Somebody dumped a lot of paper gold into the market while at the same time Indians panicked into gold as their government suddenly and without a warning demonetized the 500 and 1,000 rupee notes in an effort to crack down on corruption. The banned rupee notes made up more than 80 percent of the currency in circulation, leaving millions without cash and threatening to bring much of the cash-driven economy to a halt. One can only wonder why the Indian government had to pick the week of US elections to demonetize the high value notes after planning this in secrecy over the past 10 months. They certainly have been putting ordinary people into difficulties. 

On top of all this one of the smartest investors Stan Druckenmiller told the press that he had sold all of his gold on election night. This guy has an outstanding track record but he definitely wasn´t right all the time. Should Trump indeed manage to turn around the economy and all the other problems there is no need to hold gold over the next couple of years but we shall not praise the day before the evening. I think its more likely that we will get a crack up boom, helicopter money and finally hyperinflation. The only way Trump might be successful is by drastically raising interest rates while at the same time flooding the markets with massive QE. But he will have to persuade a lot of incapable central banksters and politicians to implement such unconventional measures....

Compared to last week we have four bullish changes:

Gold Seasonality

Ratio Gold/Oil (good for the miners!)

GDX Goldminers Sentiment

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