How Crazy Has the Rally in Gold Been? 472% Year to Date Crazy

Nothing has outperformed gold this year. Senator Jakegint has been resurrected from his crypt, in which he was entombed several years ago amidst heinous precious metal losses, in order to actively campaign for the Rafael Cruz campaign and to relish in the recent rally in gold. While everyone is talking extreme shit about Apple and the specter of oil gushing higher, gold has been making folks rich again.

The 3x upside ETF, dubbed JNUG, is up an astounding 472% this year.

Another levered upside gold ETF is NUGT, higher by more than 380% for the year.

The overall sector is higher by triple digits, led by silver.

Some of the individual percentage gainers have defied the laws of gravity.

Wherefore, Jakegint lives. Death to the fiat currency cabal!!!

I always try to tell people who use the service ‘just because a stock is overbought or oversold, that doesn’t mean it’s a sell or a buy.’ That ideology is hard for some people to grasp, as most are programmed to believe overbought to be synonymous with sell.

Not the case.

We do not try to time tops or bottoms, per se. Everything is data dependent, fully transparent, for the user to make a judgment call.

Case in example: on March the 30th of 2016, Exodus flagged a systemwide overbought signal. Some people saw this and straight away thought it equated to sell. I tried to explain to them that it wasn’t the case, that stocks tended to keep shooting higher when markets were ripping to the upside.

Here was my post from that day.

Here is the backtest data for the SPY after Exodus‘ oversold and overbought signals, all actual events and not made up in hypothetical lab situations.

If you shorted SPY with a holding period of 5 days after our OS signal, you made money 87% of the time over 30 instances. On the other hand, had you bought SPY after the system flagged OB, with a 5 day holding period, you would’ve made money 93% of the time over 30 separate instances. This is systemwide data stretching over the past 36 months.

What does it all mean?

Buy extreme weakness and buy extreme strength for easy dunk shot stock market victories. Everything else in between is trench warfare, sort of where we are now.

This is a market of extremes, swinging from pessimistic apocalyptic scenarios to hedonistic cocaine party triumphs. Humans are a depraved, sordid, crazed, species.

Trade accordingly.

Back in 2014, HAL bid $28 billion to acquire the assholes over at BHI. Much to their chagrin, the government didn’t like such a deal, as it posed anti trust issues. Plus anyway, I am sure the SLB lobby was pressing the child molesters in Congress to oppose such a deal, as it would mean heavy competition for them.

Bloomberg is reporting HAL might pull out of the deal on Monday, effectively fleecing shareholders of $3.5 billion, in what will be owed to BHI for canceling the deal.

$3.5 billion termination fee.

Amazing.

At one point, UPL was being revered as one of the next up and comer oil majors, with significant natural gas and oil holdings. Leverage is a bitch. Now they get to sell off assets at fire sale prices to Exxon, and enter the wastebin of failed enterprises.

UPL is listing $3.9 billion in debt and $1.3 billion in assets.

“The low commodity prices, and especially the low natural gas prices that prevailed throughout 2015 and have continued through the first four months of 2016 have had a devastating impact,” Chief Financial Officer Garland Shaw said in a filing explaining events that led to the bankruptcy.