Correlation Economics Backup

Remember, gold that is not in your hands is not yours. People with gold in Gold AE have lost all. See this article . I wonder if this still stands there in Abu Dhabi. Aah, memories...

Remember  my post on KYN ,  SIMO ,  TAICY ,  TYG ,  EWZ ,  XIN , GIMB ? All have been doing well. GIMB has given a handsome dividend of 4% while appreciating 7%, I'm amazed how well this stock screener idea works. I'm still keeping this stock in my portfolio as it is undervalued and can continue to rise, but let's go to another stock for our readers. Track record 7-0.Time to move on. If I don't have any ideas anymore what to buy, I use the  stock screener . What you want to do is filter on 4 attributes: market cap, P/E, dividend yield and percentage change. 1) Market Cap: do not choose small companies as they are mostly fraudulent or don't have sustainable earnings. Don't choose big companies because these are not volatile enough to get fast profits from. I'd filter between 200 million and 4 billion. 2) P/E ratio: choose the companies with the lowest P/E ratio, these companies are dirt cheap while still having earnings. Cheap is below P/E of 5. Bu...

There is a new peculiar correlation emerging between the USD/CNY exchange rate and Crude Oil. This correlation didn't exist before, we should monitor if this will hold up.

A day after the Yellen rate hike we watch what happens with the premium on gold and silver. I see a bullish rise in premiums. Premiums on bullions from mines are getting higher, hitting 27%. APMEX silver premiums are steady and rising at 26% for generic junk silver bags. There is notable interest from China as premiums keep surging higher for silver, hitting 11% (without VAT tax adjustment). China gold premiums are also rising above 0% level. Very interesting is that premiums for gold coins at APMEX are rising to 4.3%, the highest since I monitored it.

The Advance-Decline Line measures the amount of advancing stocks minus the amount of declining stocks. It is a leading indicator for the stock market. For example: When a lot of stocks in an index go down, while the index itself goes up, it means that the move up was the result of a select group of large companies that were going up, while most of the stocks in that index went down. This is a bearish indicator and the Advance-Decline Line will go down. Here are some charts and it seems that the NASDAQ is the most bearish and NYSE is the most bullish. NYSE : NASDAQ 100: Dow Jones: S&P 500:

Charts are still bullish for precious metals as large commercials are long and managed money is short.     Silver premiums are rising steadily to 30% for silver at APMEX.    Silver premiums in Shanghai are rising.   Surprisingly high premium for gold coins at APMEX.