I am not surprised by yesterdays sudden crash in gold and silver. These things will happen more often on days when trading volumes are less and/or some key bullion trading nations are closed. Such moves are manipulated with the sole aim to create panic among retail investors. Sometimes these types are moves are insider trading moves wherein the big traders knows exactly the price at which certain buy stop losses or sell stop losses will get triggered.
One year ago, British voters cast their ballots in favor of leaving the 28-member European Union, defying multiple opinion polls leading up to the Brexit referendum that said the remain camp would notch a narrow victory. In a pre-Brexit Frank Talk last year, I wrote that Brexit would be regarded as the most consequential political event of 2016. President Donald Trumps surprise election notwithstanding, I stand by my earlier comment.
While the market is searching for a top before the next larger pullback begins, I have no indications just yet that such a top has been struck. But, I still believe we will revisit the 2300SPX region before we begin the next larger rally phase towards 2600SPX.
As the Mainstream financial media continues to promote the biggest market bubble in history, only a small fraction of investors are prepared for the disaster when it finally POPS. The markets are so insane today, it seems as if fundamentals dont matter any more. However, they actually do if we look at the numbers closely.