Alarm Bells Ringing For Stock Markets

Are we overdue for the “Big One”?  It seems everyone is buying stocks again.  And no one is interested in precious metals.  Mike Maloney believes we may have reached capitulation.  Mike explains in this short video two indicators that point to a near capitulation of the markets.

Unfortunately, investors are piling into a market that is topping, while they should be purchasing precious metals.  The downside risk to gold and silver is very limited, but this can’t be said for the broader markets.  Instead, the stock market has an extreme downside risk while the precious metals have unlimited upside potential.

In the short video, Mike explains the significance of the falling gold coin sales in the chart below:

Some precious metals investors have become frustrated by the lack of retail precious metals demand and sluggish prices, while the Dow Jones Index continues to head toward 50,000.  However, this is the very time to be buying precious metals when the majority are not.

Mike Maloney also explains more details of the overextended market in his video, The Everything Bubble: CODE RED:

Lastly, if you haven’t checked at Mike Maloney’s Hidden Secrets Of Money Series at GoldSilver.com, I highly recommend you click on the link and watch them all.  There’s a lot of excellent information and data on details of money and the precious metals.

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33 Comments on "Alarm Bells Ringing For Stock Markets"

  1. Please tell me, Steve, the price rise in silver/gold will happen in my lifetime. I only have about 13 years left on the warranty. Thanks for all.

    • Dont treat silver as an investment that makes you rich. When silver is worth a lot other things get dangerous so you can’t enjoy it much.
      If you want to get rich fast try out daytrading. I nearly made 90.000€ out of 90€ in a single month. . I just made a little mistake by setting the so called Stop-Loss a little too high and my trade got flushed out with a little correction before the real storm that would have made me about 90.000€.
      But still . . the motto of the stockmarkets is: You can loose everything (that you pay in). . but you can win WITHOUT LIMIT . . You can literlly make millions out of 100$ if you are patient and smart.

      • Arno Nym, more power to you. Very few can survive financially day trading, or any trading for that matter. You have to be as smart as WD Gann, as disciplined as a Marine and have the patience of a saint.

      • I tried day trading but wasn’t to successful , any tips for me?

        • Daytrading is very very simple. Dont be scared of the many numbers nad indicators. The only factor that makes it complicated is FEAR! The less fear the clearer the view and the more win.

          I think everybody can daytrade!
          BUT use money you don’t need. And dont start with much money. Remember it*s not really about the mass of money you put in . . it’s more about the timing. Like I said. I made a bet that nearly made me 90.000€ out of 90€ in one month.
          Everybody has 90€ and internetconnection but people are made to believe that trading is only for 1 percenters. In my opinion is there NO simpler way to make money.

          Starters:
          You have to loose a view times. That is part of the game.
          You can*t learn in an other way beacuse you have to learn to cope with the fear to lose. You have to train until you stop logging in every view minutes to see what happened and you can actually wait a day or more and trust your instinct.

          The point is:
          There are always 2 options for every chart on the earth. UP or DOWN! So your chance is always 50% to win endlessly (until it might reverse after years)
          All you have to do is to be really right ONE time without corrections that smash your stoploss. Just . . ONE TIME!

          Tipps:
          . . I could talk for days about trading tips.
          But the first I would say is: develop your own techniques and never listen to anybody else. Why? Because what everyone thinks and does is mostly wrong and published to make feel people feel secure about their lives. But you can use their agenda too by exploiting their wish to smash the silverprice.

          Watch a chart . . watch it for days . . listen to news that can affect the chart . . and then keep watching it again. Without trading. You will understand its characteristics like it is an animal.
          Then you make small trades to test your intuition. . and you always cash in fast . . train this until you see the biggest opportunitiy in this chart and bet everything on it. But keep in Mind: You will probalby lose. You have to see the big trades like lotterytickets.
          You propably loose everything a view times . . or even more. But you statisticly CANT be wrong everytime!! And that is where you cash in much much more than you ever lost. Thats how it works.
          There is no magic to it. The wallstreetsharks are more or less acting like the stockmarket is a religion but they gamble like eveyone else.
          Sure you can enhance your chances by knowing more about the world . . but even if you have NO idea you can shoot at it until it explodes.

          Just keept the chartpatterns in the backhead since many people trade after these patterns and together manifest them into reality.

          More tipps
          I .. (for example) like trading with many many small trades on ONE chart . . with small amounts of money. That way I can withstand a HUGE correction until my prefered bull is starting to run.

          You can also bet agains your other trade on the chart. Like: Down shortterm . . but up longterm. So you cash in all the small downs AND the big UP.

          Another tipp for the long term is to bet two opposing charts against each other and just wait. Like USD/EUR and EUR/USD . . you will have no win or loss BUT you can sit out all movements for a while until you know where it’s heading in the future. Then you dont bust your stopp loss that fast because you are alrady far away from it and you can start profiting now by selling the opposite trade. . . Now you have a longtime trade with HUGE leverage. ..

          That is good for political things that will change the whole direction of a country. Like Spain – Catalonia now.

      • 90% of day traders fail after the first two years and drop out, either because they went broke or incurred big financial losses trying to time the market. Are you part of that 10%? Honestly, I doubt it but if true kudos to you.

        • Money makes people sick. They behave like in a strong addiction and that is what causes huge losses. They open the champaign and order hookers when they haven’t even closed the trade.
          You have to treat the stock market with a healthy disrespect and you have to have a goal. They have no goal . . they just want to grab as much as possible and forget that they could loose their millions they already made in the proccess.

          I witnessed that over and over again.
          People get addicted to money like it’s heroin. And that is what ruins them. They can#t feel how much money 100.000$ because they aim for milllions

          I trade now with a specific goal every day. Make up to 5% a day.
          That is even with no knowledge possible. And I will write a book if I reached my goal. I think people should understand the sick nature of our criminal system but profit from it as long as every other 1%er is profiting too.

    • These videos present shoddy science. Again fearmongering to induce people to buy PMs. Stock market crash is not overdue. It may happen in 2-3 years, but not now.

      • 1. It is overdue.
        The US Goverment had everything ready for a 20 year civil war on September 2012. Everything was ordered to be ready around that month. Shortly before hitting the debtceilling.

        2. There is a point where science has it’s limmits in its capabilitys for future prediction. What they call “money” is kept alive via pure emotions and trust. If the trust dwindles and all people try to get cash out of their ATM’s the system collapses immideately! . . This can be triggered by ANY large event because the world is already collapsing.

        For example:
        http://www.zerohedge.com/news/2017-10-11/threat-supervolcano-eruption-yellowstone-greater-we-thought

  2. Thanks Steve, regards

  3. Investors are rather putting money into bitcoin with a breakout above 5000 which seems appear to me as a risk-on asset. I cannot see why people would change their tactics as real conditions are the same than a few years ago.
    Regarding bitcoin, I still think we will see 8000/10000 before year end before a crash.

  4. Good grief Steve! Your last two preceding articles were spot on, then today
    you include Mike BALONEY. He is worse that Tom Cloud.

    • DisappearingCulture | October 12, 2017 at 7:15 am | Reply

      A pathetic comment from someone who has sour grapes for breakfast. He has a dislike or hatred for anyone who sells PM’s becasue they can’t make the price go up for him. he isn’t interested in facts or fundamentals.

      • Sour grapes : these guy have been 100% wrong for nearly one decade now and they are pure capitalists : it is who makes money who is righ. Period.

        • DisappearingCulture | October 12, 2017 at 4:14 pm | Reply

          It isn’t as black and white as “who makes money [in the short term] is right”.

          • Maybe but the timing is essential in capitalism. I personaly do not understand how jim sinclair still have public apperance after such dismal results and forecasts.

  5. DisappearingCulture | October 12, 2017 at 7:43 am | Reply

    Folks, if you want to understand why the price of gold remains range-bound, read this article. Silver is similar to gold in regards to COT control http://investmentresearchdynamics.com/trading-and-investing-in-gold-follow-the-money/

    Precious metals dealers are not bad people becasue they don’t have control over this.

  6. Margin debt will be the killer of the stock markets.
    The sheer size of the margin debt bubble will ensure this.
    Stock holder’s sitting with a finger over the sell button will be too late.
    When that sell moment arrives, they will be selling into a NO BID market.
    The US asset (stocks) inflation is now 34% above the 2007 peak!
    The inflated paper wealth is just the same asset at ever higher prices.
    Paper wealth has the potential to go to zero value.
    Physical gold or silver DO NOT. They ALWAYS maintain true value.

  7. Maloney?Since years we suffer because of his wrong estimations regarding the silver/gold market.
    He has no clue!

    • DisappearingCulture | October 12, 2017 at 4:15 pm | Reply

      He has no clue?
      Moronic statement.

      • COTs just released at the 10th october evening are terrible, commercial shorts have not even decreased but increased again.
        I hoped that 1215 USD would be the bottom but I now think it will be breached in the next few weeks. That would mean not only another USD/JPY rise but probably another big rise in stocks worldwide and cryptos.

  8. Alarm bells have been ringing for many years for those who predict these types of stock collapse instead.

  9. “Thank you, JT

    I think I should tell you that my views on the situation have firmed up lately. I think we are near the end of what I now call “phase 4” in the process:

    – Phase 1 – deceleration of growth (c 2000)
    – Phase 2 – using cheap & easy credit to “fake” ‘business as usual’ (2000-08)
    – Phase 3 – crash, caused by inability to service excessive debt at ‘normal’ rates of interest (2008) (mechanism: loss of trust in banks)
    – Phase 4 – ‘monetary adventurism’ – policy of cheap money to co-exist with excessive debt (2009- )
    – Phase 5 – crash, created by ‘monetary adventurism’ (mechanism: loss of trust in currencies?)

    This is one reason for getting SEEDS on line now – because my hunch is that the current situation is running out of time.”

    https://surplusenergyeconomics.wordpress.com/resources/

    • Kind of thinking along same lines Houtskool. My pet theory has been to totally disregard most alt-media sites that present no material fact or instead offer warnings with dates etc. The exceptions have been sites like this with focus on energy costs, or Smaulgold’s, Koos Jansen, or Rory etc where they just try to get the raw data correct without putting on a one sided spin.
      In my opinion, it really boils down to game theory. An adversarial type of game theory as proposed by the late Professor Nash. No one party is going to change his behavior as long as he perceives the other parties are unwilling or unable to change theirs. Thus we are sort of stuck in this Nash equilibrium/stalemate. Disrupting the status quo is unthinkable, almost like nuclear war used to be, only now it seems that some neo-cons may have revised their “thinking” on this issue. Russia may not have any choice, like the rat in the cage who merely has no choice but to deal with the forthcoming electrical shocks in the classic behavior studies experiment.
      There really is no longer any structural free market basis for any of the markets, interest rates, stock indices, or even the cryptos. There is probably at least some evidence that precious metals are manipulated down IMHO.
      The problem with game theory is that there is no short to intermediate time frame limit /predictability when this “Mexican Standoff” moment of truth arrives, when everyone panics and scrambles. Paradoxically, those who read this blog are more aware of the issues, but are frustrated because they have watched as inflation rips through cash savings, PMs are suppressed, equities skyrocket with no traditional justifiable sound economic reason, etc. Very very frustrating and paradoxically those “in the know” almost wishing for a “collapse,” not because they are anarchists, but because they want an honest system upon which to build.

      In a very strange digression of mine, as I am often prone to do, I have been reading up on the Boar Wars (you are from Netherlands?)and Zulu-British wars of late, in particular, the Rourke’s Drift and Isandlwanna. I feel like the British defenders in a way are presented with the same dilemma. In the face of overwhelming numbers of Zulus (all the equity, real estate, student loan, car loan bubbles), versus a limited number of defenders with limited ammo and defensive fortication, at what point do you as a defender have to start shooting? Too soon, and you waste ammo and miss most of the enemy. Too late, and you may not knock off enough of the attackers before being overwhelmed. A terrifying situation either way.

      • Thanks Hubbs. I feel the same way. The ‘system’ has no choice but to extend and pretend, because if we don’t, the people in Europe will start burning mosques after another terror attack. Growth will be gone, people will live in poverty and their political correct spiritual feelings are simply gone, washed away by the lack of buying power and smartphones. In the US racial tensions will speed up and turn into uncontrollable madness. Pensions vanish and we will see hundreds of thousands of grandpas and ma’s begging for food. We cannot stop or everything implodes. That’s why we see all this nonsens in financial markets and monetary schizms. We ran out of affordable energy that’s needed to feed the beast; infinite growth on a finite planet. Now, most people still believe in bits & bytes. That will end, some very smart people with very good blogs say it will end sooner rather then later. How will our world look like without bits & bytes? Well, i can tell you there won’t be any cows left to look at, lying under a tree, chewing peacefully on a straw.

  10. At the precious metal exhibition in Germany none of the gurus appears.What might be the reason?

  11. I rather think the bad preticions where the reasons.

    • I think no one can predict the pm markets since they are controlled ? They should be much higher but get suppressed by the banks

  12. Linking PM price forecasts to energy production instead of supply and demand is probably the best approach I’ve seen. I have been in the PM game for a while and have come to the conclusion that the biggest influence on PM prices are the choices for alternative investments. Crypto currencies, FX trading is easier than ever, stock markets that are moving up at a moderate pace, relatively strong demand for debt instruments an derivatives. It’s not about price discovery. True PM prices will become apparent in the event of a crisis. I am a firm believer that Crypto will reign supreme, and when that becomes out of reach PMs will follow. PMs will be seen as very difficult to offload to capture price increases and convert to other assets. Anyway, there is a natural aversion to tradable investments that seem too difficult to deal with and therefore demand will remain suppressed. It’s all about timing – this holding for future generations stuff is not my priority. Quick conversion to other asset classes remains a priority for me. Moderate monthly or quarterly PM purchase remain as part of my strategy.

  13. If the DOW is heading to 50 thousand why would anyone want to buy metal. Who would have ever thought the road to a permanent bull market was negative real interest rates, it’s a beautiful thing for those who have capital and credit. Foreign central banks are loading gold all day. Will we get an inflationary event later, probably, maybe, and that’s what the fed wants is to short the dollar. It’s a boom/bust economic cycle, some foreign countries are moving to avoid the economic shock of such policies, gold helps some, but it’s my worst investment at this point. We should be looking at the lack of demand for U.S. gold coin and thinking .. are folks getting stretched because, I buy au/ag with disposable income, physical gold is about as close to a sunk cost as it gets. It’s quite pricey from a historical perspective as well, so future inflation is already cooked into the current price.

    • C,

      Nice comment. You need to go get a job on CNBC stating what a wonderful job the Fed and Central banks are doing. Furthermore, you can also mention that the bankers are doing GOD’S WORK, as Goldman Sachs CEO stated a few years back.

      steve

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