Gold Miners Continue to Shine, Currently the Best Performing Sector Over the Past Two Weeks

Let me show you my charts.

On October the 11th, while many of you gold traders were throwing yourselves into lit fireplaces, Exodus was speaking to its members, ever so quietly, and alerting them to the fact that it was oversold.

See how the oscillator was at its lowest point two weeks ago? Fast forward to today, gold is the best performing sector in the market, up by more than 10%.

Today’s gains further cement the idea that weak economic news is a positive for gold, all related to Fed rate hikes. Naturally, this is inherently stupid, since gold is a play off inflation. But there isn’t any inflation and it has morphed into a protest trade, people disaffected by markets who are sick and tired of Fed policies and wanting a way out of their sphere of influence.

From my vantage point, gold trades up sharply if the market delves into panic mode and it also will trade higher if the central banks continue to denigrate fiat currency via QE.

Today’s winners.

This is a long tail trade for me, something unusual for this site. Since entering the money management field in 1997, I’ve managed to do very well and now I’m interested in preserving what I have and making money a better way. I can’t deal with the horseshit anymore and much prefer to use Exodus and a few macro themes to further my investment evolution.

Bear with me. This is a work in progress and I’m constantly tinkering with new methods. Speaking of which, I’ll reveal my ‘FIST OF DEATH’ short sales tomorrow or the day after.

All of a sudden, an inventory draw of 5.7m barrels occurred. The market was expecting a build of 2.75m. If I recall correctly, just last week there was a big build. This numbers and stats are utter horseshit, but it inspires traders to take directional positions. Today, and for the better part of the last 2 weeks, the direction is up.

WTI is breaking out, up more than 3% — providing a well needed lift to the energy sector.

This is the oil and gas drilling sector oscillator in Exodus. This is predictive, using our algos. As you can see, it’s at the bottom of the recent range.

Word of caution, however, we’re heading into seasonally dreadful months for oil stocks. November is particularly noteworthy.

For the day, traders are taking advantage of the bullish climate and bidding up oil stocks, especially those heavily shorted.

CNN has a long rich history of doing this sort of horseshit. This one is especially hilarious, in that it was so blatant and transparent, it made them look like preposterous morons.

CNN drops live feed right as Congressman calls Hillary a liar, mentions Wikileaks.

Just a coincidence.@wikileaks #PodestaEmails12 pic.twitter.com/DNhB0FVgvQ

— Paul Joseph Watson (@PrisonPlanet) October 19, 2016

Granted, I am heavily biased against J. Harwood. He reminds me of someone I once punched in the face. His smugness on my financial channel is annoying. He’s heavily biased towards the Hillary campaign and I’d be fine with that, if only he manned up to it and stopped trying to pretend he was a hard news guy.

You’re not fucking fooling anyone, John. And this email to Podesta proves it.

.@JohnJHarwood thinks it's amazing how reporters would burn time asking the next president about her emails #PodestaEmails12 pic.twitter.com/poSJsGYaRW

— The_Real_Fly (@The_Real_Fly) October 19, 2016

I just wasted about an hour of my day, sifting through J. Harwood’s emails to Podesta (lolz) and am disgusted by what I read.

See what you’re making me do John? Quit being such an asshole and do your job without being a fucking shill.

In spite of the fact that there’s zero evidence to suggest Russia is behind any of the damning Wikileaks revelations, Washington insiders keep blaming them. Today, GOP waterboy took the Hillary Clinton position in demonizing Russia by suggesting ‘foreign governments’ were behind the leaks and he wants nothing to do with them.

Really? So the true story here, according to Marco, is that ‘next time it will be us’, and not the fact that the leaks have laid bare a culture of corruption unseen since the Nixon era.

This is what you call an establishment bitch.

Sure, don’t look at the Wikileaks or even talk about them, no matter what they reveal. The truth is a lie and the preservation of elitist power is the primary concern.

Like it or not, Wall Street truly doesn’t give a shit about Main Street. When I was managing money, often times I resented the demands out of Main Street, as I was disconnected from the real world — only focused on my next trade.

This narrative plays out on a daily basis in the markets — as investors clamor for Fed policies which do little for the average Joe and much for the extraordinary Joseph. This morning housing numbers came in worse than expected. Futures are rising on this news and commodities are catching a bid. The play here is to hope the economy weakens enough to prevent a Fed hike in December.

Residential starts declined 9 percent to a 1.05 million annualized rate, the lowest since March 2015, a Commerce Department report showed Wednesday in Washington. The median forecast of economists surveyed by Bloomberg called for a rise to 1.18 million. Permits, a proxy for future construction, jumped 6.3 percent to the fastest pace since November.

“New-home construction seems to be in a holding pattern,” Jacob Oubina, senior U.S. economist at RBC Capital Markets LLC in New York, said before the report. “But I don’t think the housing recovery per se is stalling out.”

Work on multi-family homes, such as townhouses and apartment buildings, slid 38 percent to an annual rate of 264,000. Data on these projects, which have led housing starts in recent years, can be volatile. Starts on structures with at least five units were the lowest since June 2013.

Estimates for total housing starts in the Bloomberg survey of economists ranged from 1.1 million to 1.2 million. The previous month was revised to 1.15 million from a 1.14 million pace.

Permits increased to a 1.23 million annualized rate. They were projected to rise to a 1.17 million pace after 1.15 million the prior month, according to the survey.

Single-family house construction rose 8.1 percent to a 783,000 rate, the most since February, from 724,000 the previous month.

Three of four regions posted a decline, led by the Northeast with a 36 percent drop, the report showed. Starts in the West were unchanged.

The velocity of money continues to decline, thanks to Fed policy and a litany of regulations — such as Dodd Frank. We find ourselves in a weird world where growth plods along at 2%, yet so many economists keep publishing reports of an imminent breakout to the upside. It never happens and the risk keeps leaning to the downside, with a very sluggish consumer.

If you’re stock picking, good luck. From a macro perspective, there’s little to like about the growth of this economy and large macro trends for stocks.

The now disgraced Bob Creamer, recently exposed for being part of a leftist movement to rig elections, announced today that he was ‘stepping back‘ from being a malevolent asshole. In other words, he is taking some well deserved time off from ‘Democracy Partners’ — an arm of the DNC.

Thank heavens for finance bloggers having to do the work of staff journalists, who are very busy bees being corrupted by disgusting politicians. Tyler from Zerohedge did a little digging and unveiled Mr. Creamer’s numerous visits to the Obama White House — numbering in the hundreds, 45 in 2016 alone.

Here is Bob doing his thing in the Project Veritas expose.

White House attendance log

So, why do you think Bob was there?

Remember, elections aren’t rigged. That’s just ridiculous. Maybe they were just community organizing?

That’s a fuckload of visits.

I am sure this is all a big misunderstanding. The good folks over in ceviche-ville would never allow themselves to be paid off, in order to relieve themselves of a hacker, terrorist, fucker — living in their London offices.

Almost immediately after Julian Assange’s internet access was revoked, a Bill Clinton appointed judge ruled that the Ecuadorian cyber-theft lawsuit v Wells Fargo could proceed to trial. While it’s possible that this was going to occur anyway, it’s equally possible that Judge Lewis Kaplan might’ve been inspired to rule against them too.

A lawsuit by an Ecuadorean bank alleging that Wells Fargo & Co (WFC.N) is liable for authorizing the transfer of $12 million stolen in a 2015 cyber heist can go forward, a U.S. judge ruled on Tuesday.

The decision by U.S. District Judge Lewis Kaplan in Manhattan was in response to Wells Fargo’s motion to dismiss the lawsuit by Banco del Austro, which sought to hold the U.S. bank responsible for failing to halt the transfers made via the SWIFT network.

The 2016 lawsuit took on new importance in the wake of this year’s heist at the Bangladesh central bank, in which cyber thieves used the SWIFT global messaging system to swipe $81 million from an account at the Federal Reserve Bank of New York.

Via Wikipedia

On May 5, 1994, Kaplan was nominated by President Bill Clinton to a seat on the United States District Court for the Southern District of New York vacated by Gerard Louis Goettel. He was confirmed by the United States Senate on August 9, 1994, and received his commission on August 10, 1994. He took senior status on February 1, 2011, and was succeeded by Judge Ronnie Abrams.

And there’s just one more minor issue with regards to Judge Kaplan and the government of Ecuador. He was the one who ruled against them in their plight to collect damages from Chevron, for leaving their rain forest in tatters, for the meager sum of $9 billion.

An attorney for a New York City lawyer, Steven Donziger, who was heavily criticized by Kaplan, called the 2nd Circuit decision “unprecedented in American law” and vowed to explore all options on appeal.

“Never before has a U.S. court allowed someone who lost a case in another country to come to the U.S. to attack a foreign court’s damages award,” attorney Deepak Gupta said. “The decision hands well-heeled corporations a template for avoiding legal accountability anywhere in the world. And it throws the entire international judgment enforcement framework out the window.”

It went to appeal and were ‘outgunned on a profound level.’

She’s a bedraggled, sick, demented, establishment, crony, globalist, oligarch enabling, authoritarian, eugenics supporting maniacal plotting bitch. Aside from that, I’m sure she’ll represent the nations of Saudi Arabia and China very successfully over the next 4 years.

Get rich quick! Crooked Hillary Clinton's pay to play guide: pic.twitter.com/uKh5sCFfrv

— Donald J. Trump (@realDonaldTrump) October 17, 2016

Is he toast, begs Vanity Fair in a recent article depicting the fucked state of a certain B. Ackman?

If you’ve been tracking the illustrious career of Montauk Bill, you’ll want to read that pieced linked above.

Here are some of my favorite spots.

“I think he hits a brick wall at about 197 miles an hour,” says Marc Cohodes, a Wall Street short seller. “I think he’s done. I think he’s a dead man walking and he’s completely un-investable.”

I am told that David Einhorn, the founder of Greenlight Capital and another Ackman nemesis, has done an extensive analysis that shows that Pershing Square investors have taken it on the chin. (Einhorn declined to comment.)

It is unlikely, in the end, that Ackman will go broke. A source close to Ackman suggests that he has more than $6.5 billion in permanent capital, giving him a safety net for his problems. In a savvy move at the time, in October 2014, Ackman raised more than $4 billion in permanent capital by selling stock, in Amsterdam, in a new company, Pershing Square Holdings, to investors. Months later, in June 2015, he raised another $1 billion from a bond offering. He can use the proceeds of these deals to make new investments, and not worry that investors will demand their money back as they can in his private hedge fund.

For such a smart guy, he’s so fucking stupid. A great man once said ‘success has defeated you.’ Indeud.