Sharemarkets on brink of collapse

As the FED last week announced that interest rates will be higher for longer, potentially staying elevated through all of 2024 – markets seem to be pricing in the full effects of this extended period of pain. The SP500, NASDAQ and DowJones have all suffered from poor trading sessions, most recently seeing sharp and serious declines, as we’ll show in charts today.

With economists citing either ‘September is always a bad month for trade’ or ‘The recession is finally here’, regardless of the headline, the sentiment is still the same. Will September 2023 prove to be too much for markets to bounce back from, leading into a FED induced recession?

With Gold and Silver still reasonably underpriced (especially in USD) they could well provide a moment of safe haven to protect investors from current economic headwinds. Precious metals have always giving investors access to an asset class that is reasonably uncorrelated to market swings, protects against inflation and is wealth you can literally hold in your hands. 

If markets are positioning for a correction in the coming months, what would you rather be holding? 

We’ve included a small commentary on our charts today for you.

Gold daily, with 200MDA

Gold, dropping through its 200MDA last week has continued to show weakness this week and is struggling with its recovery. We started to see a higher lows pattern, however this looks to be breaking down presently as it finds a new range of trade.

Silver daily, with 200MDA

Silvers chart showing quite clear patterns, with higher lows, but also starting to show lower highs as well. 

US500 daily, with 200MDA

Note the high printed in pink, and we’ve been setting lower highs since July.

Serious downwards pressure towards the 200MDA, potentially crossing through within the coming days.