* Big day in gold today; gold broke over $1200 for the first time in almost over a year, in fact we hit a new 1-year high
* I saw gold trading above 1260 at one point in the morning, that was up better than $60 on the ounce; It closed up 49.10, I believe at $124.90
* Remember, I was on CNBC "Futures Now" earlier in the week and gold was around $1180-$1190 and they were trying to press me on where I thought it would go, and I said, it's going to go higher, I'm bullish in the short term, the medium and the long term
* But I'll tell you one thing: when gold brakes through $1200, it's going to move to $1300 very quickly and people are going to be surprised
* It's just been one day and we're halfway there
* Gold stocks still reflect a lot of skepticism on this rally; Gold stocks were up about 7% on the day
* Gold stocks have a long way to go to catch up
* I mentioned on the last podcast, Dennis Gartman, who got bullish on gold, told people not to buy, he said wait for a pull back
* Well the people who are waiting f or a pull back are still waiting and they missed this entire $50 move
* The stock market was the mirror image of the gold market today; at one point, with less than an hour to go, the Dow was down 400 points again, the NASDAQ was maybe down about 60
* Then all of a sudden there was a rumor floated that the United Arab Emirates was considering meeting with other OPEC nations about a production cut and all of a sudden the market rallied
* The NASDAQ actually rallied positive; the Dow got to about -170 and then they rolled over on the close, Dow down 254, NASDAQ down 16.76 - horrible close
* Of course the weakest stocks on the day continue to be the financials getting decimated to new lows
* Goldman Sachs down about 4.5%, Morgan Stanley down 4.5%, Bank of America down 6.8% - many of these companies making new 52-week lows
* But outside the financials, the debacle du jour, in the stock market is Boeing, which is a Dow component, was down 7% on the day, near a 3-year low; the lowest I saw inter-day was -12%
* The news is that the SEC will investigate their accounting practices - that can't be good
* Also they reported that they are going to be laying off workers in an effort to contain their costs
* It's not just about bad oil loans, that's part of the story, that's just the tip of a huge iceberg
* In fact, the market rallied because of the rumor of OPEC is making moves to support oil prices
* We hear people saying that what the stock market needs is higher oil prices. No we don't!
* Higher oil prices will help oil stocks, but they're not going to help the overall market market because some guy writes an algorithm that runs a program that says, "Buy stocks when oil goes up"
* Steve Liesman said on CNBC recently that he never would have believed the market would be so dependent on oil prices

* A lot of people make that mistake, assuming that oil is driving the stock market but the same factors are dominating both: fear of higher interest rates and weakness in the U.S. economy
* But eventually, I think oil prices will go up, and the stock market will continue to go down
* Many people are hopeful that Janet Yellen's second trip to Capitol Hill, this time talking to the Senate, might save the market; apparently that was not the case
* Janet Yellen, this time, in the Q&A was closer to admitting that negative rates are coming
* She actually said they would consider doing it if the economy needed it
* All the discussion is going straight to negative rates and skipping over zero interest rates and QE
* There was no discussion about reversing December's .25 rate hike
* If Janet Yellen is thinking about negative rates, she has ready considered zero rates and QE

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Janet Yellen Channels Scott Nations – Ep. 142