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Stewart Thomson

Stewart Thomson

Stewart Thomson is a retired Merrill Lynch broker. Stewart writes the Graceland Updates daily between 4am-7am. They are sent out around 8am-9am. The newsletter is…

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The Gold Pendulum Swings To Bull

Graceland Updates 4am-7am
Aug 28, 2012

  1. We're only as good as our last trade. Please click here now.

  2. A week ago, the charts indicated that silver was potentially set to begin a long period of outperformance against gold. That has seemingly started "on cue".

  3. Note the black HSR (horizontal support & resistance) line that was created by the lows around .01873 and .01889. Like a wild bull, silver has charged into that price area, on enormous volume.

  4. Investors should consider booking light profits on trading positions now, while entertaining the view that this is probably only the opening act of the "big silver show".

  5. Where should you reload your trading gun with fresh silver bullets? Please click here now. Note the highlighted buying area.

  6. There is a difference between booking profits and calling a top. Generally speaking, professional investors sell into strength, while amateurs try to call turns.

  7. Silver is overbought against both gold and the dollar, but it could make more highs during this rally, before correcting.

  8. Gold is also slightly overbought on the daily chart, but that doesn't mean it turns down. Please click here now. Gold has rallied about $90 higher, since mid-August.

  9. Note the black HSR line in the $1675 area. There's another one at about $1715. We can't know if gold will decline from here, or rally up towards $1715. Since I'm heavily long gold, obviously I'd prefer the next move to be towards higher prices.

  10. Please click here now. Gold may be making a short term top, or it could be consolidating between $1660 and $1680, before launching a powerful surge to $1700-$1715.

  11. The $1647.50 price zone appears to be key support, and I have buy orders there.

  12. If the price surged to $1715, then I would recommend booking more profits, and placing buy orders in the $1680 area.

  13. It's critical that investors carry long term core positions that are never sold, because gold is the ultimate asset. It is wealth itself. That's a concept that is hard for many people to understand.

  14. Another key wealth-building concept that is difficult to grasp is the difference between a "buy signal" and a "bullish event". Please click here now. You are looking at the GDXJ daily chart.

  15. It could be described as a "technician's dream". Price has surged to a new minor trend high, on very good volume.

  16. I view the rise to $22.37 as the most important technical event to occur in junior gold stocks in almost two years, but that doesn't make it a "buy signal".

  17. Please click here now. If GDXJ rises to $23.38 or higher, the $22.18 area becomes a buy zone for traders.

  18. If GDXJ rises to the $27.16 area that I've highlighted on the chart, and then declines towards $22.18, the area around $22-$23 becomes an enormous buy for long term investors.

  19. To view the current key buying areas for GDXJ traders, please click here now.

  20. Note the blue HSR lines highlighted with green circles at about $22.50, $19.83, and $19.09. Those are your points of action, and mine, for buying!

  21. I've noticed a big change in the general morale of the general gold community over the past week. I want to see that vibe "amped", with a bullish view of the GDXJ chart.

  22. Most investors have given up on QE3, but I'm holding to my prediction that it occurs in September.

  23. Volume is the technical lie detector of all major market moves, and it is building on each rally in every precious metals sector.

  24. Gold is entering the strong season, and Iran-Israel tensions are increasing. Overall, the gold market pendulum is moving quickly and decisively, from bear to bull!

Special Offer For Website Readers: Please send me an Email to freereports4@gracelandupdates.com and I'll send you my "High Fives" report. There are five key reasons why I believe QE3 happens in September, and I'll lay them out for you. I'll include analysis of five senior gold stocks that could surge higher very quickly!

Thanks!
Cheers
St

 

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