When Markets Are As Extended, They Can Top On Anything

We had a bit of a turnaround Tuesday today all of the major US stock market averages were higher in the morning and we closed broadly lower on the day. In fact the Dow Jones Industrials Average (DJIA) did make a new all-time record high this morning before closing down about 60 points so though the decline in the Nasdaq was a little bit greater. We had a 0.82% decline in the Nasdaq, the Dow was only down by about 0.3%. The S&P 500 Index though had a bigger decline as it was down about 0.7%, so the broader averages took a bigger decline than did the Dow.

Now, I don't think the technical damage is extreme. Yes, we made new highs and close lower but it really wasn't an outside day, I mean we didn't close below Monday's lows for example which would have been an outside reversal but we'll see. You know, when markets are as extended as they are, of course, you know, they can top on anything.

Investing: How To Profit From The Trump Train Wreck

Peter Schiff speaks in Vancouver at the International Metal Writers Conference on how to profit from the Trump train wreck. (Market Vectors Gold Miners ETF (GDX), SPDR Gold Trust ETF (GLD))

Housing Starts Declining, Trouble Ahead?

We had an unexpected big drop in housing starts. This is the third month in a row that the starts are down but not only where housing starts way down but building permits were also way down so that means that this trend is likely to continue. The last time we had three consecutive monthly declines it was in 2009. What was going on in 2009? Oh, the greatest recession since the Great Depression! (KB Home (NYSE:KBH), Lennar Corporation (LEN), SPDR S&P Homebuilders (ETF) (XHB), D.R. Horton (DHI))

A Hawkish Federal Reserve

We actually got a hawkish hike not only did the Federal Reserve raise rates but they did nothing to dampen expectations for future interest rate hikes. In fact Janet Yellen in her prepared remarks and in the press conference that followed was very upbeat, very optimistic on the economy not worried about anything and no longer talking about the need for some kind of confirmation that prior economic weakness was transitory. She thinks that it's clear skies as far as the eye can see.

Big Reversal In Bitcoin

It wasn't just the stock market that had big reversals I guess it was the crypto currencies as well particularly Bitcoin. You know, I mentioned the last couple of times that I was talking about Bitcoin and the kryptos, the shrinking market share that Bitcoin had in the crypto world and that continues right now. The market cap of Bitcoin is now down to about 40 percent of the total market cap of all the crypto currencies.

Gold Stocks: Performing Much Better

Gold stocks continued to trade much better than they have been, I mentioned that on my last podcast even though gold was down 11 dollars on the day, gold stocks were down but not that much, down just a little bit. (Newmont Mining (NEM), Barrick Gold (ABX), Market Vectors Gold Miners ETF (GDX), Market Vectors Junior Gold Miners ETF (GDXJ), Goldcorp (GG))