• 287 days Will The ECB Continue To Hike Rates?
  • 288 days Forbes: Aramco Remains Largest Company In The Middle East
  • 289 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 689 days Could Crypto Overtake Traditional Investment?
  • 694 days Americans Still Quitting Jobs At Record Pace
  • 696 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 699 days Is The Dollar Too Strong?
  • 699 days Big Tech Disappoints Investors on Earnings Calls
  • 700 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 702 days China Is Quietly Trying To Distance Itself From Russia
  • 702 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 706 days Crypto Investors Won Big In 2021
  • 706 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 707 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 709 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 710 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 713 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 714 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 714 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 716 days Are NFTs About To Take Over Gaming?
Trade In Counterfeit Goods Hits Half A Trillion Dollars

Trade In Counterfeit Goods Hits Half A Trillion Dollars

The counterfeit market has breached…

How Millennials Are Reshaping Real Estate

How Millennials Are Reshaping Real Estate

The real estate market is…

  1. Home
  2. Markets
  3. Other

Silver And Bank Stock Lovebirds

Graceland Updates 4am-7am
Jan 8, 2013

  1. Gold functions like an alarm clock. A rising gold price usually indicates that financial uncertainty and volatility are the dominant market themes.

  2. Inflation that begins to get out of control can cause the price of gold to rise almost vertically, but during the transition period from deflation to inflation, bank stocks and financial companies tend to be the best leading indicators.

  3. Please click here now. You are looking at the monthly chart of the XLF financial sector ETF. The $16 area is one of strong resistance.

  4. A correction is to be expected, but there are signs that the financial sector is on the verge of a substantial trending move to the upside.

  5. Please click here now. I've highlighted a large bullish ascending triangle in green. Note the blue circle around the current price. XLF appears to be trying to stage a breakout.

  6. The target of the triangle pattern is roughly the previous highs in the $26 area.

  7. If financial stocks begin to surge higher, it would likely signal an end to deflation, and a beginning of inflation. That would be very good news for your gold and gold stocks.

  8. I'd like you to take a closer look at the current price action of financial stocks. Please click here now. You are now looking at the XLF weekly chart, and I've highlighted an upside breakout from what appears to be a truly monstrous inverse head and shoulders pattern.

  9. That breakout suggests that a "reflation of the world" theme is probably now set to replace the deflationary mindset held by most investors.

  10. In regards to gold: "People seem to be universally bullish, but the price isn't moving..." - Reuters News, Jan 8, 2013, quoting Ross Norman, the top-ranked LBMA gold forecaster.

  11. Ross has a good track record, but I have some concerns about his view that most people are currently bullish about gold.

  12. He's obviously correct that the gold price is stuck in a quagmire, but rather than "universally bullish", I see most investors as bearish and demoralized.

  13. Please click here now. That's the latest Hulbert "Gold Sentiment Chart". He surveys a large group of gold timing services.

  14. I see overwhelming bearishness on that chart. Hulbert uses his survey as a contrary opinion indicator, and it has a superb track record of calling intermediate term movements in the gold market.

  15. Silver is the metal most likely to benefit from a "reflation of the world" theme. Platinum and palladium should also do well.

  16. If you have 100 units of risk capital to allocate to the metals market, I think 70 units for gold and 30 for silver is a good way to handle real risk and potential reward.

  17. Reflation can lead to hyperinflation, and gold is the metal you want to hold the most of, in such an environment.

  18. Central banks tend to take very drastic action when inflation starts to go out of control, and that can hurt metals like silver, platinum, and palladium.

  19. Regardless, it's silly to worry about the popping of an inflationary bubble when it is just beginning to get inflated!

  20. At this point in time, silver is my "metal of choice" for fresh buys. Please click here now. That's the daily chart for silver.

  21. After bursting above the black downtrend line, the breakout was confirmed by a 14,7,7 Stochastics series crossover buy signal.

  22. It's normal to take several weeks, or even longer, for intermediate trends to really get going, after such buy signals appear on a chart.

  23. Amateur investors have a tendency to want to rush things a bit, and then throw in the towel just as the real move gets underway.

  24. Silver looks superb at this point in time, and the budding breakout in financial stocks may be the surprise catalyst that makes every silver investor's upside dream come true!

Special Offer For Website Readers: Please send me an email to freereports4@gracelandupdates.com and I'll send you my free "Golden Head Fakes" report. Learn how to place profitable short term trades in the metals markets, by selling technical breakouts, and buying breakdowns!

Thanks!
Cheers
St

 

Back to homepage

Leave a comment

Leave a comment