"No warning can save people determined to grow suddently rich" - Lord Overstone

  • 21 hours The FANG Stock Investors Should Avoid
  • 2 days Is This The Death Of The iPhone X?
  • 2 days Is London Still The Financial Capital Of The World?
  • 2 days Is Gold Staging A Comeback?
  • 2 days The $200 Million ‘Golden Parachute’ For Rupert Murdoch
  • 2 days Bitcoin’s Breakout Is Not As Bullish As it Seems
  • 2 days Farmers On Edge As Trade War Hits U.S. Grain Shipments
  • 2 days Is Silver Poised For A Massive Break Out?
  • 3 days Meet The Hedge Fund Billionaires Club
  • 3 days The Next Housing Crisis Could Be Right Around The Corner
  • 3 days Cartel's, Pirates And Corruption Cost Mexico $1.6 Billion Per Year
  • 3 days Africa’s Fastest Growing Economy
  • 3 days The Blockchain Boom Hits The Utilities Sector
  • 3 days Why Smart Money Is Selling Off Right Before The Bell
  • 3 days Tech Giants Rally Ahead Of Earnings Reports
  • 4 days Global Debt Hits 225% Of GDP
  • 4 days The World’s First Trillionaire Will Be A Space Miner
  • 4 days How Student Debt Could Cause The Next Real Estate Crisis
  • 4 days This $550 Billion Industry Is Betting On Bitcoin
  • 4 days One Commodity Set To Soar On Russian Sanctions
Oligarch Risk: The New Red Flag For Investors

Oligarch Risk: The New Red Flag For Investors

Investors are scrambling to diversify…

Tech Giants Rally Ahead Of Earnings Reports

Tech Giants Rally Ahead Of Earnings Reports

Earning season has just begun,…

Resting on the Bernanke Decision

Often is the case that the dollar will reverse just before or within days of a major anticipated news event. If I'm right, today's potential bottoming tail candlestick just shy of the Fed's announcement tomorrow may be an indication of a Bernanke disappointment. On this basis, the dollar has bottomed and will likely undergo a sharp upward reversal into the remainder of this week.

If however the market likes what it hears since now days language itself is a measure of stimulus, then expect to see a sharp 1 to 2 day downdraft which will finalize this current decline.

Either way, I do not expect this deeply oversold condition to at all be making any accommodationgs for QE3 tomorrow, or anytime soon for that matter.


Larger Image

IF the dollar does drop another day or two, Gold will likely make an advance to psychological resistance at 1800 before marking a short-term top. Otherwise, a top is in, and prices should intiate into a corrective phase over then next 3 to 4 weeks stalling at its 50 day moving average.

I also want to emphasize that this upcoming pullback should reside anywhere between 1650 and 1700, but it may be the very LAST time this year we ever see the metal price trading here again. The Reason being is a soon glory cross that will confirm the re-emergence of a new bull market.


Larger Image

Say what you want about moving averages, but they seemingly have provided as a worthwhile indication of trend changes throughout history. And while no indicator is perfect, judging by price alone, the yellow metal has lately been certainly acting very strong.

I expeect by mid October this cyclical turning point will be within a larger framework of drastic inflationary measures pursued by all nations to artificially revive their homeland currencies. Consequently, Gold will materialize into a hyper-inflated market that decouples dramatically from all other asset classes.

Remember, 95% of people are not actually convinced of a GOLD BULL until the trend is in its latter stages. And only then does it become too expensive to buy. The only arguable explanation that would end the bullish case is until real rates surpass one, or at least when the public figures out that those levels can be realized.

I don't see that happening anytime soon, especially not tomorrow,do you?

 

Back to homepage

Leave a comment

Leave a comment