GSR……..75 to 1…….

epstein end of day:

https://youtu.be/pHXWSogLpMw?t=32

Cory and Mr T – Good commentary today on the current initiatives that China has on their credit expansion, on the French Elections impact on Euroland, on the latest in “Transitory” Fedbabble, the expectations for the Yen carry trade, and the health of the lending sector to small business loans. You guys covered a lot of ground today.

Much appreciated!

Obama once dreamed of being Trump, manuscript shows

http://www.foxnews.com/politics/2017/05/03/obama-once-dreamed-being-trump-manuscript-shows.html

Gold, silver and commodities need the BoJ to start tightening. Unfortunately, there is nothing on the $usdjpy monthly chart to suggest that is going to happen any time soon. $usdjpy looks to me like is in a new bull market after making a golden cross for the first time in at least 20 years on the monthly chart. Now, of course gold could outperform yen going forward, but that is little consolation if they are both going down. Also, no one can deny that gold, silver and commodities have been tied to the hip with $usdjpy from a directional standpoint since the mid 1990s (tops in $usdjpy correspond with bottoms in commodities).

Until $usdjpy tops, there will be no bottom for commodities, gold and silver.

Right now there is a giant cup and handle/inverse head and shoulders on the $usdjpy weekly chart (it has a diagonal neckline). The neckline is currenlty coming in around 116. When that neckline breaks, $usdjpy is going into the 130-140 range. From there based on the monthly chart I expect $usdjpy to hit 180 eventually. Needless to say, I think gold will likely be at or below $900 (its 200 month moving average) and silver to be in the single digits.

The monthly GDX chart is headed lower in the next at least 2 months. The stochastics tell you all you need to know. They are not yet oversold, but they will definitely hit oversold before any kind of bottom is reached. If this month is bad enough, I will concede that the stochastics could hit oversold even if next month is positive. What I expect to happen is $hui to drop into that June 14 FOMC meeting and then it should get some sort of relief rally, bottom. Of course, it is possible the stochastics embed in oversold territory, which will confirm we were never in a new bull market (heck, the weekly stochastics probably confirmed that on the drop from the 2016 highs–they stayed embedded in oversold territory instead of bouncing immediately like they should in a real bull market).

Fed still in control of the con game………..