My last post that covered Gold could not have been better. I called for itleast $100 down on the day of the high and we have dropped $107 as of yesterdays low. Now what?I have drawn a horizontal line where I feel there is support in this market, and it is in the 870 area. I do think we will bounce from there. If we don't the huge fraud of this market might finally be revealed. Regardless of what you might read, there is no correlation AT ALL between dropping stock prices and gold prices. Some of the biggest stock drops in history have been followed by huge price drops in GOLD.
I will say this though, it is a cute little fairy tale that has gotten some legs from, I know this will be hard to believe, the people who benefit the most from having it rise! It is the coin dealers and others selling GOLD that are perpetuating this fraud. It is no different from the Real Estate people who kept hyping Real Estate as it rose into the strosphere. Buy now or be priced out forever, etc..
Go ahead and buy it for whatever reasons you might have, just make sure it is not because you think the stock market will continue to decline. If you don't believe me just pull up a chart with the SP 500 at the top and the Continous Gold chart below, and look at all of the extreme decline periods. 9/11 is the only recent period where Gold happened to rise when stocks went down. There is not a consistent relationship here so do not be hoodwinked by these crooks. The best recent line I heard was there is no reason not to pay a $200 premium from the spot price when buying gold coins because we are going top $3000 anyway! I would like to walk in the studio of that dude's radio show and ........ for that discussion he had. Joe Batalia should be called Joe I will Tell you a Tale...ia. Seriously folks is anyone really that stupid that they would pay a premium of that amount on anything in the world right at this point?
Oh wait, I know, IT IS DIFFERENT THIS TIME!
4 comments:
It does look like gold's moment hasn't come yet. It will probably be in a range between 700 and 1000 for a few months. If and when the treasury bond market starts to unravel (last bubble to burst?) AND gold breaks out 1000, watch out.
I don't think it is ever coming based on my studies of markets but I trade short term so I do not really care what is going to happen 6 months from now. I am more concerned about 6 days from now. The dumb money is chasing that market, not the smart money, itleast at the moment anyway.
Could you share some details on your studies as why you think gold's day may never come? Thanks.
I just study history and what has typically occurred. The idea that is being sold as to why GOLD will go way up is a concept that has no historical precedent. I have no idea if it is correct, but I base all of my trading decisions on patterning things that have cause and effect in prior instances.
Gold has never been an effective flight to quality from stocks. Anybody who has studied that relationship knows that. Now, whether or not it might be this time by chance, I cannot say. Gold investments should be based on inflation views, and since we are in a deflationary spiral now, I do not see why Gold should rise. I will grant you it has held up better than any other commodity. Maybe that is due to the excessive hype it is getting from everyone on the radio, TV etc.. It is so reminiscent to me of the Real Estate Bubble that I really see no difference.
I watch inside players and what they are doing, and they are selling right now, especially in Silver. That is a sell signal to me, I don't care what Chicken Little ( Glenn Beck ) or Sean Hannity tell me, I want to be the opposite of them in investing strategies.
Maybe the world is truly ending and GOLD bars will be the only viable barter item, and I will be proven wrong. Short of that, until we get into an inflationary cycle, I do not think Gold is going to rise a large amount. It is in an uptrend so buying dips is prudent at 870 area but I am looking to short it up on this bounce we are getting.
Post a Comment