Loading ...Yes the Fed fired it’s bazooka today because the Dow would have opened down 1000+. With the new options cycle the effect of the newly bullish specs buying calls (because stocks are down and the Fed will not allow collapse and a bounce is omnipresent) is why stocks can’t rally in spite of this record debasement.
Eventually a bounce will materialize once the specs stop buying calls for the bounce, but obviously not yet. I’ve got the Dow down to as much as 15k before a sustainable b-wave bounce materializes. Obviously it could come sooner, but should not exceed 25k or so.
For PM shares they should be held captive by general liquidity conditions for a while yet, likely until the next wave down in stocks begins (after the bounce alluded to above), but both they, and bullion, should bottom well before stocks if history is a good guide. I expect to see a PM bottom this year, but again, if history is a good guide, this does not come until the broad measures of stocks have been declining for approximately 6 months — putting us into August/September.
Now, if the crash is faster this time, the timing of all this may be accelerated too, and if you are happy paying for PM stocks at these levels go ahead, however lower levels might still be in the cards.
Silver though, with mining not possible at these prices — a bottom is close — if not already in.
Silver stocks might continue to suffer with general liquidity conditions, but not the bullion too much longer.
As well, and in relation to the broads, PM stock specs have also been active, taking some ETF open interest put / call ratios lower (GDXJ, NUGT. JNUG, AGQ), so they should continue to be held back for the same reason — no squeezability.
Cheers