The Morning Call---Gold is setting up for another leg higher

 

The Morning Call

 

1/6/26

 

The Market

         

    Technical

 

            Monday in the charts.

            https://www.zerohedge.com/markets/bonds-stocks-oil-gold-crypto-jump-dollar-dumped-amid-maduro-mayhem

 

Note:  the S&P made a new higher low yesterday (good news) but remains below

its all-time high. I remain cautious until the barrier is breached.

 

            Monday in the technical stats.

            https://www.barchart.com/stocks/momentum

            https://www.barchart.com/stocks/sectors/rankings

            https://www.barchart.com/stocks/signals/new-recommendations

 

            Gold is setting up for another leg higher.

            https://www.zerohedge.com/the-market-ear/gold-setting-another-leg-seasonality-turns-sweet

 

            Bitcoin chart triggering squeeze deja vu.

            https://www.zerohedge.com/the-market-ear/bitcoin-chart-triggering-squeeze-deja-vu

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

The December ISM manufacturing index was reported at 47.9 versus estimates of 48.0.

https://bonddad.blogspot.com/2026/01/december-ism-manufacturing-report.html

 

                        International

 

The December Japanese manufacturing PMI came in at 50.0 versus forecasts of 49.7; the December German services PMI was 52.7 versus 52.1; the December composite PMI was 51.3 versus 51.5; the December EU services PMI was 51.5 versus 51.9; the December composite PMI was 51.5 versus 51.9; the December UK services PMI was 51.4 versus 52.1; the December composite PMI was also 51.4 versus 52.1.

 

The December German CPI was 0.0% versus expectations of +0.4%.

 

                        Other

           

                          Update on housing inventory.

                          https://www.calculatedriskblog.com/2026/01/housing-january-5th-weekly-update.html

 

            Overnight News

 

In late night Truth Social post, Trump announced that Danish territory is now an American “protectorate.” Denmark and the broader NATO alliance are extremely concerned the US could imminently seize Greenland and paralyze the NATO alliance. 

 

            Monetary Policy

 

              Fed credibility and Powell’s performance (and the survey says……).

              https://talkmarkets.com/content/fed-credibility-and-powells-performance?post=548324

             

 

            The Dollar

 

              Why economic growth slowed after 1971.

                https://www.forbes.com/sites/johntamny/2026/01/04/slow-growth-since-1971-the-floating-dollar-just-begs-for-attention/

 

              Calling for a weaker dollar is the stuff of economic ignorance.

              https://www.realclearmarkets.com/articles/2026/01/05/calls_to_weaken_the_dollar_are_the_stuff_of_economic_ignorance_1156615.html

 

                          Dollar on track for further declines.

              https://www.ft.com/content/1712a946-5861-444e-9740-d488c865c5cf

 

                          The dollar’s role in global reserves the lowest in decades.

              https://www.zerohedge.com/markets/dollars-role-global-reserves-lowest-decades

 

            Tariffs

 

              The truth about tariffs is emerging.

              https://talkmarkets.com/content/global-markets/the-truth-about-us-tariffs-is-finally-emerging?post=548115

 

            2026

 

              The meltup is still on.

              https://www.ft.com/content/cb840ba1-7e4b-4c6c-9e15-e72becfc6d3a

 

              From JP Morgan’s trading desk.

              https://www.zerohedge.com/markets/jpmorgans-trading-desk-starts-2026-tactically-bullish-heres-why-and-its-4-favorite-trades

 

     Investing

 

            Precious metals are not predicting an economic collapse.

                https://www.advisorperspectives.com/commentaries/2026/01/05/metals-arent-predicting-economic-collapse

 

            The AI debt boom does not augur well for investors.

            https://www.ft.com/content/d36f3392-9a73-476a-9357-8ff311bb04da

 

    News on Stocks in Our Portfolios

 

What I am reading today

 

How long will it take to ramp up Venezuelan oil production? (feel free to ignore the political part of this narrative)

https://mishtalk.com/economics/how-long-will-it-take-to-ramp-up-production-of-venezuelan-oil/

 

 

 

Visit Investing for Survival’s website (http://investingforsurvival.com/home) to learn more about our Investment Strategy, Prices Disciplines and Subscriber Service.