Statman's Sunday look at the markets: The DOW JONES, BITCOIN, and PRECIOUS METALS. supporting charts and commentary.

Welcome Steemian friends. I hope your weekend is a good one! It is late Sunday morning Florida time!

I have decided of late to do a weekend market report. Yes, my passion is baseball and historic sites. My profession was "the markets" and being on the right side of them. And I saw Wall Street 40 years ago from the inside out. Maybe I can share some insight and help a few people. That is my intent. the opinions are my own. Please do your own didligence.

Keeping EMOTION out of things, lets look first at BITCOIN (and the cryptos).

chart: currency strategist.

As I write we are a bit below the above chart (now about 7500). I wrote, on the way to 19,000, SELL at 15000, hold on the ay down at 10000, buy at 8000. We then rallied to the spot I said was tough sledding, a bit over 11,000 (lots of resistence), and the likely test of 8000 "Do not sell". And if we don't rally from this 7492 as I write early in the week, we can see as low as 6000. Painful? You bet. I'd not hesitate to be a buyer here. I firmly believe you are going to see dramatically higher prices before the year is out. I'll write "why" in another report. This is a maturation period. Note the "bad" news re: Facebook and Google, that may not be such bad news. Bitcoin doesn't need to advertise on Google and Facebook. And not being there adds legitimacy and maturity to this investment. Do you see "buy such and such" stock on these venues? Hardly.
The best market timer I have followed for 40 years Arch Crawford is sticking with 40,000 for Bitcoin, or more.

The Dow Jones Industrials: While the near term (several months) could show a decent( it's trying) rally, I'd sell it! Yes the sentiment indicators I've written of lately are bullish (fear in the market), we had SELL numbers in early January. I called this in January. The put/call ratios were some of the most negative in many years, indicative of a major top. It does not take much for complacency to set in in this market. Thus, while people may feel safe in this market, they are not. See charts below:

chart: Peter Bockvar and KWN

Above see the inflation warning. It is worse than the "untruths you are being told by the Gov't statistics". And to worsen.

Chart: Peter bockvar and Bloomberg Financial

Above see the LIBOR 3 month chart.

The Libor (England) is the wholesale rate of money. Rates are headed higher, bonds lower and stock WILL follow the bond market. "THEY will attempt to keep the market up. "QE" etc. But international tensions, trade wars, the Chinese and Japanese unwillingness to hold our mountain of debt..(unless they are paid more..i.e. higher rates), portend for bad equities markets longer term. Yes, EVEN American political instability!

Lastly, the precious metals. We are in a seasonally poor time. Gold and had a chance to break out to 1400 in January. It did not. I see this mild decline almost to an end. this 1310 level can soft land to 1280. No big deal. See charts below.

The current envirnment is going to be the perfect storm for silver and gold. Actually silver has the potential to greatly outperform gold. there will be a mania into precious metals. By the way keep an eye very shortly on the Chinese and a "Gold backed" currency.

Chart courtesy of von Geyerz.

For the sake of redundancy I'll let the silver chart speak for itself. Right now, commercials are going long and have dramatically coverred shorts. This is a buying opportunity of huge proportions.

I will comment mid week. Thanks for your UPVOTE and FOLLOW Yankee-statman.