Metals Set For A Massive Price Spike As Bear Market Rally Ends
Metals Set For A Massive Price Spike As Bear Market Rally Ends from King World News
As the bear market rally comes to an end, it now appears the base and precious metals are set for a massive spike.
Bear Market Rally Exhausted
By Bill Fleckenstein President Of Fleckenstein Capital
February 7 (King World News) – Stock market bulls took a break today and the indices fell more than 1% in the first couple of hours. There was no proximate cause that I could see. Perhaps the bear market rally has finally exhausted itself, which is how they typically end, but after the little maniacal run we have seen I’m not in any hurry to reach a conclusion. (Some may blame it on negative trade headlines, but those came after the slide began.)…
After the early dip, the market fell some more in the afternoon, but then rallied a little late in the day to trim the losses to the 1% or so you see in the box scores.
Away from stocks, green paper was flat, fixed income was higher, and the metals gained a little bit as well, while the miners kind of just flopped around and finished slightly lower.
There is not much more I can add given where we are, so perhaps it is just as well that there will be no Rap tomorrow, as I will be traveling. The question is, however, whether we will see some big volatility, as so often happens when I am on the road, for some mysterious reason. In any event, Ask Fleck will run as usual.
Also of importance…
Expect Huge Rally In The Base Metals
From top Citi analyst Tom Fitzpatrick: Base metals appear to be bottoming, with copper, nickel, and zinc especially showing positive price action (see charts below).