MSA Says Momentum Trigger is Close, ($2700 Not Crazy)

Morning Markets

VBL

Aug 16, 2024

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Housekeeping: Good Morning.

Gold Revaluation is happening (quite literally) before our eyes

Today:

Commentary: Silver price action defies data
Premium: MSA Re-ignition level for the day

Equity Recap:

US equities rallied on Thursday after a stronger than expected retail sales report. Large caps lagged small caps

Premium Markets:

Silver Defies Data

Retail sales came in stronger than expected:

U.S RETAIL SALES (MOM) (JUL) ACTUAL: 1.0% VS 0.0% PREVIOUS; EST 0.4%
U.S CORE RETAIL SALES (MOM) (JUL) ACTUAL: 0.4% VS 0.4% PREVIOUS; EST 0.1%

Silver, despite a very strong dollar and weakening bonds and in the face of a tepic Gold rally, proceeded to ramp the rest of the day along with stocks, defying the economic data’s implications

Silver’s 4.01% move from bottom to top yesterday…

Notable: China isn’t buying Gold while India buys. Instead they are buying Silver…

Bottom line: Silver is now in Catch up mode to Gold again and with the Gold/Silver spread up here, there are sellers of gold and buyers of Silver again

Gold Momentum, Levels Near

Micheal Oliver sent out a Gold communication last night to subscribers alerting them of proximity to a price that would likely reignite momentum higher. That price action starts above is $2493 basis October and gets even more confirmation above $2503

All of these fairly significant trend metrics offer a tight cluster of upside breakout resumption levels—which argue the arm-wrestling of the past several months is over and the acceleration process resuming.

If Gold rallies, Depth Equals Height…

We will tell you how to better interpret this info and utilize it in your own trading at bottom and share an idea or two on how we will use the levels

Full analysis premium at bottom…

Market News:

"Advanced retail sales accelerated 1% on the month, much better than the 0.3% estimate. In other economic news, weekly jobless claims totaled 227,000, a decrease of 7,000 from the previous week and lower than the estimate for 235,000. The reports come the same week as data showing that inflation eased slightly in July." Source: CNBC

"Federal Reserve Bank of St. Louis President Alberto Musalem said he believes the time is approaching when it will be appropriate for the US central bank to reduce interest rates. Source: Bloomberg

"U.S. consumers might be spending carefully, but they are still flocking to Walmart stores. WSJ

"A bipartisan group of 19 lawmakers sent a letter to Meta asking why ads for illicit drugs on Instagram and other apps have continued to proliferate while the company is facing a federal probe over the practice." Source: WSJ

Politics/Geopolitics:

US official said mediators concluded a 'constructive day' of discussions on Gaza ceasefire and talks are to continue on Friday,
Hezbollah has said that the counterattack will not occur during talks with Qatar, via Kann's Kais citing the Washington Post; "The response can wait, it is not urgent and has no time limit.".
Russian President Putin's aide said the attack on Kursk was planned with the participation of NATO and Western intelligence, and Ukraine would not have attacked Kursk without US support, according to Al Arabiya
North Korean leader Kim said in a message to Russian President Putin that Russia will be victorious in a "sacred war" for peace and justice

Some headlines via NewSquawk or DataTrek