Last Friday, in a further disconnect between Main Street and Wall Street, the Dow shot up 455 points because unemployment numbers came in a bit lower than feared… despite erasing a decade of job gains.
The NASDAQ rose 71 to 9,192, registering its sixth consecutive day of gains.
Despite a broad range of dismal economic news sweeping the globe, the Dow, S&P 500, and NASDAQ Composite have spiked over 30 percent from their 23 March lows.
Yesterday, the Dow fell 109 points, and today it was down 457 points.
Gold, closing today at $1,701, has maintained its $1,690 to $1,710 trading range.
Bitcoin has also remained stable in its $8,000 to $9,000 range, as speculators seek alternatives to fiat currencies during a period of unprecedented cheap money injections by central banks.
Brent crude, at $29.50 and West Texas Intermediate at $25.39 remain in the “rally” range after sinking recently to 20 year and history lows, respectively.
PUBLISHER’S NOTE: With more than half of the S&P’s companies reporting their first-quarter earnings, the result is likely to be an average decline of 13.7 percent, based on earnings already announced and analysts’ projections for the rest. The drop would be the sharpest since the third quarter of 2009, even though the index already has rebounded from its March lows.
TREND FORECAST: The support point for gold remains $1,450. Gold will continue to gain as governments continue to print worthless paper to keep banksters and Wall Street gamblers rolling in cheap money to speculate with. People who don’t fall for the central banks’ con job will continue to store value in gold and Bitcoin, keeping prices for them strong.
TREND FORECAST: Unquestionably, the central banks and governments will continue to invent new schemes undreamed of to pump countless trillions into equity markets and economies.
Evidenced by equity markets rising while economies are collapsing, this signals the absence of true economic fundamentals and harsh reality in the money-junkie addicted New World Disorder.
Yet, eventually, the funny money injections from central banks will dry up in many nations as their economies collapse under the load of endless debt and/or when inflation spikes as their currencies deflate, making its worthless money even more worthless than it already is.
The longer central banks keep flooding markets with cheap money to keep things looking good, the harder the world’s economies ultimately will crash.
Stock Markets Have Best Month in 33 Years
In April, U.S. stock markets turned in their best monthly performance since the rally after October 1987’s “Black Monday” crash.
The FTSE All World index of worldwide stocks registered its strongest month since 2008, and U.K. blue-chip stocks also are in a bull market, meaning they have gained more than 20 percent from their recent lows.
Tech stocks led the U.S. market rally, with Amazon’s shares up 28 percent and Netflix’s gaining 24 percent as millions of people stranded at home are shopping online and binge-watching television.
Again, the key reason why markets are behaving in contradiction to the reality of the worst global economic crisis in 90 years are not economic fundamentals, but the unprecedented cheap money injections by central banks.
“The markets are on a sugar high right now,” said trader Andrew Left. “They’re not making much sense to me.”
Mr. Left, however, has now put more money into the market.
As with many investors, his skepticism about the durability of the rally seems to have been replaced by a fear of missing out on whatever gains can be had before the merry-go-round stops.
Is This Silver’s Moment?
As investors have sheltered their financial assets in gold during the economic lockdown, the metal’s price has remained near or above $1,700 for weeks.
Silver’s price has lagged. But now, the also-ran metal might be closing the gap.
In March, as the economic panic was taking hold, an ounce of gold was priced at more than 125 times than an ounce of silver, which was selling at slightly more than $11, an 11-year low. That wide a spread has not been seen for more than 350 years, according to data amassed by gold trader Ross Norman.
Silver demand, also used in manufacturing, is also pushing prices lower. Used as a key ingredient in electronics and solar panels, for example, silver prices sank as the economic lockdown shuttered industry around the world.
With gold still flying high, lockdowns lifting, and industrial activity reviving in Asia, now a growing number of investors see silver as a bargain. The metal had narrowed the gap with gold to 113 times by early May with more room to run.
Silver could reach $20 an ounce by the end of the year as the economy perks up, according to analysts at Bank of America.
