That’s a quote. While gold and silver enter what he calls a phase of massive acceleration. That was on Sunday when he dropped by for the founder’s discussion, which we’ve just emailed to premium subscribers everywhere. But first, we’d like to make a special announcement as it is. For those of you interested in technical analysis, as well as the book I keep threatening to write, well, an announcement. Over the past year, I’ve been putting together chapters of a book that I hope to release within the next six months. It has been a collaboration with Terry Wooten, my friend and legendary financial editor who was in no small part responsible for the Dow Jones Newswire tapes that you read every day on terminals.

Part of my process has been organic, where I write down experiences and Terry masterfully edits them so that raiders can better understand my particular thought process. What I will be doing today after this program with your permission is share the raw material for one such chapter later on this morning. It involves how the gold market and other markets are managed by various players. It stems from a parallel explanation by none other than Jesse Livermore, who introduced a concept called the accumulation barrel or accumulation cylinder. The concept will be a central part of what we discuss in this special technical analysis portion of the book I am working on and sharing presently.

So I’ll be sharing that chapter with you pretty much in full before Terry does his work on it. The topics we’ll be discussing are the cap cover trade and accumulated structure as the BIS facilitates, the BIS as the ultimate backstop, cap and cover the classical pattern, fight after the cap and accumulate the right side of the pattern and Jesse Livermore’s accumulation barrel, how it fits in with this whole structure. That’ll be coming out later this morning, early afternoon. It’ll be a podcast if we get it done properly. And we’ll give that to you at the same time that we give it to Terry so he can put it together for the book for us.

First, the markets. Ten year olds are 420 up one. The dollar is 98, 99 up 10. The SV 500 is 69, 72 down a smidge. NASDAQ is up 21 at 25, 750. The VIX is 1521 up 10. Gold in Shanghai, 94, I’m sorry. Silver in Shanghai, 94 last. 85, 63 last in US spot. Gold, 45, 86 down 11. US, 47, 59 up 53 in Shanghai. Copper, 597 up 4 continuing to March. Beware the odds of January. We’re close. WTI participating now in these rallies up 80 cents, natural gas of 12 cents. Bitcoin up 884.

Ethereum up 40. Palladium down 22. Platinum down 8. Gold, silver down another 50 basis points, 90 basis points I should say. And grains are offered uniformly. So the funds are getting out of grains again. Okay, to the main story. Michael Oliver describes the equity market as locked in a prolonged topping process where short-term upside marks deeper structural weakness. He notes that long-term momentum charts now show stocks sitting at fragile inflection levels warning that investors are dancing on glass as leadership from names like Nvidia, Apple, and Microsoft continues to fade. In past cycles, he argues, losing leadership has never rotated cleanly into new winners at bubble peaks, referring to, of course, the new narrative.

Oh, the leaders aren’t in video anymore. The leaders are cyclicals. It’s a narrative telling people to rotate, but eventually they rotate and de-gross. That’s my comment. Oliver contrast this with monetary metals, which he believes have already transitioned into a higher velocity phase. Central bank liquidity responses, he says, are inherently supportive for gold. Gold loves that quote, because it’s money and they’re destroying money or the other money, I should say. Even a move to 8,500 gold would largely replicate prior bull market ratios. In his view, meaning it’s increasingly becoming apparent that we could outdo those prior epics.

So, but even not outdoing that epic puts us at about 8,500. The implication is clear. Equities remain in late cycle transition while gold and silver are positioning for their next major acceleration. Now, on that note, you know that I’m long as I L and S I L J and short AIQ against it, which has done well for the past two weeks. That’s because I’m not long silver and all you guys are long silver making money. So good for you. So that, that interview, that complete Sunday session has been sent out and also includes Commitment Traders CFTC analysis.

Other news analysis, we put out eight stories yesterday and well, you could see them there. We already discussed this, the coming soon part. We’re going to move right to the data. The data this week is CPI and PPI, not jobs and employment data. We would say to you, CPI is important, especially since no one’s talking about it, but zero hedge is. And we just put a link to their story in there in the first paragraph. Economists expect Tuesdays, US CPI to snap back in December after November is unusually soft reading, which was curved by the government shutdown with headline CPI seen rising 0.3 month over month, same as core CPI 0.3 month over month.

Annual rates are expected to hold a 2.7 year over year for both headline and core remaining below September levels and signaling a continued deflationary, disinflationary trend. And then they go through that the way they do, explaining the breakdown of the items as viewed through Goldman, JP Morgan, as well as their own take. That’s titled December CPI preview. Snap back from government shutdown distortions. And that’s, that’ll be at an 830. And we already did that. Since we’re doing technical analysis, I thought I’d do a couple of charts today that I haven’t been doing normally.

That’s Polly, by the way. I like Polly, but we’re not talking about that right now. Uh, GDX, you look at this and you say, holy shit, right? I’m tapping that what Michael and I talked about. You say, holy shit, that’s really high. But when you go like this, oh, it doesn’t go back far enough. When you go back to this, this structure compared to stocks in general, GDX versus the broader market, it’s really just getting going. So you could also make the case that this is going to stay where it is. And stocks are going to drop the broader market, but it’s just something to be aware of.

That’s GDX. Here’s gold. Not much to say except that. Actually, I’ll say this. If this is an exponential blow off rally, then why is it happening so orderly? We haven’t begun to blow off. Just keeping myself honest. Silver, same idea. So tapping into what Michael said, we’re entering into a high velocity era. So it could go on for three months. It could go on for six months. We go on for two years, but it really does seem like it’s being held back. And I’m not telling you $500 or $1,000. I’m just saying it really seems like it’s being held back.

And we’re actually going to talk about this formation. A lot of you are familiar with the cup and handle. Here’s the manic, the mania, the sell off, the bottom, the orderly accumulation, and the cutting loose the chains. And then what I’m looking at right now, you may be familiar. I said I’m short AIQ and long SIL, which so far, so good. But I want to look at Nvidia versus SIL. That’s pretty cool, I think. And it’s not so much a comment on how cheap SIL is because Nvidia is over it. To me, it’s a comment on how overvalued Nvidia is.

And yeah, you can make the case that Nvidia is not overvalued. It’s the new economy, et cetera, et cetera, et cetera. And I get you on that. But the arrogance of humanity, thinking that they’re better than everything out there all the time, 24 hours a day, is just a chicken getting ready to come home to roost. Remember, Nvidia was a shit company, not a shit company, a good company that had a good idea. So who’s to say this will drop off a little bit? Now you know why I’m short tech against being long miners.

And also in the daily, for those of you more short-term oriented, that. Now what is that? Let me make this a little bit easier for you. That is a Bollinger Band wining in Nvidia versus SIL. But the one that I like more, which is actually what I was looking at is AIQ versus a SIL. You see that yellow bar there? That yellow bar came out yesterday, the day before, the day after I should say I got short AIQ. And now here we are down here with a Bollinger Band breakout. Now, I’m very happy to see that from a daily point of view, but from a weekly point of view, it’s saying we could be oversold, the eight and nine.

So let’s see how it acts the rest of this week. I’m Vince. Have a great day. Well, thank you, Vincent, for another great show this morning. And thank you to you at home for being out there and joining in here and watching along with us. Fun to talk with so many of you in the chat. And if you enjoyed the show, go ahead and hit that subscribe button and the notification bell so that you can stay posted as these different events continue to unfold in the precious metals markets. And just in case you missed what Vince had to say yesterday, well, that one is coming your way now.

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