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The Rotation To Defensive Stocks Continues

Cory
September 10, 2018

With US markets holding at or near all time highs there is a general rotation of money into more defensive stocks. Chris Temple and I discuss why money is flowing in that direction and where some of the worrisome signs are coming from.

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Discussion
19 Comments
    Sep 10, 2018 10:28 AM

    The gold/silver miners are extremely oversold versus the stock market.
    GDX:SPY weekly:
    http://schrts.co/qVwfcp

    Sep 10, 2018 10:30 AM

    GDXJ:DIA weekly:
    http://schrts.co/6GK2qp

    Sep 10, 2018 10:35 AM

    Gold is extremely overbought versus silver and looks like its three months of outperformance is coming to an end.
    http://schrts.co/chR7mE

    Sep 10, 2018 10:48 AM

    I bought a defensive stock this morning yielding 5.7%, BTI@47.5
    Now watch it drop to 40.

    b
    Sep 10, 2018 10:51 AM

    I’ll consider buying more gold at under $1000, might be a good price (maybe) but the wait for it to increase will be a consideration.

    CFS
    Sep 10, 2018 10:10 PM

    The lies of Obama exposed and the economic incompetence of Obama clearly explained graphically:

    https://youtu.be/GvFdhrt5204

    Sep 10, 2018 10:11 PM
    Sep 10, 2018 10:42 PM

    I’m shorting FXI. Expect it to get as low as 30. My puts are up 46%

    Sep 10, 2018 10:42 PM

    DXY could hit 110.

    Sep 11, 2018 11:15 AM

    Silver…….rolling over again……$13.90’s…….looks insight…………..jmo

      Sep 11, 2018 11:06 AM

      Silver looking good……..buy, buy……….two years from today….You will be happy….jmo

        Sep 11, 2018 11:08 AM

        The gold-silver ratio has been one of the most reliable technical ‘buy’ indictors for silver, whenever the ratio climbs above 80. The gold-to-silver ratio has now spiked above 85, which is the highest level of this entire 18-year bull market! In fact, you have to go back 27 years to 1991 for the ratio to be higher than it is today. Amazingly, the ratio is currently higher than it was at the depths of the 2008-09 financial crisis (circled in the chart below).

          Sep 11, 2018 11:09 AM

          Historic Ratios for Comparison
          The ratio of silver to gold in the earth’s crust is 17.5:1. In Roman times, the price ratio was set at 12 to 1. In 1792, the gold/silver price ratio was fixed by law in the United States at 15:1, which meant that one troy ounce of gold was worth 15 troy ounces of silver; a ratio of 15.5:1 was enacted in France in 1803. The average gold/silver price ratio during the 20th century, however, was 47:1.

          Sep 11, 2018 11:10 AM

          Info…..from 321

    Tom
    Sep 11, 2018 11:03 AM

    long BPMC