What’s With Gold And The Dow Jones In Late September?

C:\Users\Owner\Documents\Financial Data Excel\Bear Market Race\Long Term Market Trends\Wk 671\Chart #10   DJ Step Sum 2017_20.gif

Moving on to gold’s step sum table below, gold’s daily closings have been overwhelmed by down days in the past month. Its step sum is down by six net daily declines (292-286=6), and its 15 count has remained negative for a long time, though at a -5, gold’s 15 count remains neutral. Actually I’d like to see gold’s 15 count go down to a -7 or lower, which would technically make gold oversold, and thus ready for a rebound.

Still, all that red below is a bit depressing. But as noted above, this is what markets do; they go up and then they go down. Yet for all the selling seen below, the bears have failed to drive gold’s BEV value below -10%, and that may be the key observation to take away from the table.

For the Dow Jones step sum table, we can see its bear box developing. Since August 21st the Dow Jones is down757 points as its step sum is up four net daily advances. Comparing gold’s with the Dow Jones table I can see why gold is down 3.94% in the past twenty-five trading sessions. I’m surprised it’s not down 10%.

But with all the daily advances the Dow Jones has seen since August 21st, why is it down 2.71% after the FOMC had “injected” $128 billion into the financial system during this time? How much longer before the idiots begin their Not QE-5?

Here’s some fake news from CNN Business on the commercial and residential real estate markets:

Commercial real estate flounders as housing market booms

By Paul R.La MonicaCNN Business

Updated 2:28 PM ET, Tue September 22, 2020

New York (CNN Business) The housing market is red hot thanks to record-low mortgage rates and consumers looking to flee cities for the suburbs.  But offices, shopping malls and other commercial real estate properties have been hit hard by the coronavirus pandemic.

This is all true enough; as published. Commercial real estate for the past two decades has declined as brick and mortar retail has lost business to internet merchants. Once one had to live in New York or Chicago to have access to merchandise originating from distance corners of the globe, a distinct disadvantage to anyone living in North Dakota or Wyoming. But the internet changed all that.   

As an example here’s a link for Japanese knifes offering both manufactured and hand forged kitchen implements. The selection offered for types of knifes and steel used in them is amazing, with prices ranging from $100 to over $2000!

Look at the recommendations for the knife seen in the link here; people from around the world shop here for knifes made by old samurai-sword smiths. Even Macy's or Marshall Fields from years ago couldn’t compete with this internet site when it comes to kitchen knives, or other consumer goods on other sites, and they have suffered for it.

Office space is a big CCP virus loser as many businesses have discovered how easy it is to have their “office workers” just stay at home and work on-line. This new arrangement saves them the expense of renting office space, so these companies aren’t planning to lease office space anytime soon.

The boom in single family homes is a monetary phenomenon. As seen in the chart below mortgage rates have been dropping since October 1981 when they peaked at 18.53%. In October 1981, with a rate of 18.53%, a $1000 monthly payment could afford a mortgage of only $64,000. A few weeks ago mortgage rates declined to 2.96%, where a $1000 monthly payment could afford a mortgage of $240,000.  

Truth be told, the collateral for both mortgages could be the same house. Forty years later this house now needs updated plumbing, a new roof and windows, but your real estate agent knows a real bargain when they see one.

C:\Users\Owner\Documents\Financial Data Excel\Bear Market Race\Long Term Market Trends\Wk 671\Chart #A   30 Yr Mort Rate.gif

What makes this CNN Business article so fake isn’t what it’s reporting, which is true enough as it goes, but in the obvious omissions not covered in telling this story. In time the CCP Virus pandemic will be proven to be no more a health hazard that is the flu. And the harm inflicted on retail merchants by the COVID-19 virus was completely unnecessary.

The “consumers looking to flee cities for the suburbs” are fleeing from riot zones. Management of these cities’ reaction to these riots has been to defund their police departments and quickly release any rioters apprehended by the police, allowing rioters to resume looting and burning their city. They also have actively prosecuted any business or home owner who attempted to protect their property and livelihood with firearms.  

The obvious question not asked in this CNN Fake News article was “who wants to pay property taxes to municipal governments like these?”

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