To explain, the red line above follows the S&P 500, while the green line above follows US private building permits (released June 16). If you analyze the arrows, you can see that the first almost always turns around before the second . For context, the S&P 500 initially peaked before building permits in 2018 and concurrently in 2015. However, in 2018, when the S&P 500 recovered and continued its ascent – unlike building permits – the index benchmark US stocks suffered a decline of about 20%. So, if you analyze the right side of the chart, you can see that building permits peaked in January and have declined significantly. And if history is any indication, the S&P 500 will eventually follow suit.

In conclusion, the PM imploded on June 17th, as the apprehension of the decline and the sharp revaluation of the USD index brought down the guillotine on metals. And with the latest FED dot plot, similar to bullet holes in the PM, the ambulant casualties are still far from being cured. With soaring inflation and the Fed likely to become even more hawkish in the months to come, the cycle has shifted significantly from the golden loop environment that metals once enjoyed. And with the two-day price action likely the opening act of a much bigger game, PMs could wait months for another round of applause.

Thanks for reading our free analysis today. Please note that the above is only a small fraction of today’s global gold and silver trading alert. The latter includes multiple details on bonuses such as targets for gold and mining actions which could be achieved in the coming weeks. If you want to read these bonus details, we’ve got some great news for you. As soon as you sign up for our free gold newsletter, you get free 7-day, no-obligation trial access to our premium gold and silver trading alerts. It’s really free – Register today.

For an overview of all of today’s economic events, check out our economic calendar.

Przemyslaw Radomski, CFA
Founder, Editor-in-chief
Sunshine Profits: Efficient Investing Through Diligence and Care

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All essays, research and information found above represent analyzes and opinions solely by Przemyslaw Radomski, CFA and the associates of Sunshine Profits. As such, it may prove to be incorrect and be subject to change without notice. Opinions and analyzes are based on data available to the authors of the respective trials at the time of writing. Although the information provided above is based on careful research and sources believed to be accurate, Przemyslaw Radomski, CFA and its associates do not warrant the accuracy or completeness of any data or information reported. The notices published above do not constitute an offer or a recommendation to buy or sell securities. Mr. Radomski is not a registered securities advisor. By reading the reports of Przemyslaw Radomski, CFA, you fully agree that he will not be held responsible for any decisions you make regarding the information provided in such reports. Investing, trading and speculating in any financial market can involve a high risk of loss. Przemyslaw Radomski, CFA, Sunshine Profits employees and affiliates and their family members may have a short or long position in any security, including those mentioned in any of the reports or essays, and may make purchases. and / or additional sales of such titles without notice.

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