Its been a slow day so I thought I would get the Wednesday stock report finished early.
Gold Market Analysis
Technical analysis to forecast future price trends of gold and other precious metals, as well as the US Dollar and the Euro.
Speaking dispassionately, the chart below (courtesy stockcharts.com) shows three historically bearish break-downs (blue arrows) and three potentially important bearish developments (purple arrows).
To paraphrase Einstein, not everything worth measuring is measurable and not everything measurable is worth measuring. The purchasing power of money falls into the former category.
The past couple months have been a roller coaster ride for investors and traders.
Author Note: This is the first of three articles that examine the threats and opportunities facing the world economy.
Man-made financial phenomena imitate nature, but more importantly they are subject to the powerful laws of economic nature.
On Friday the price action in gold caught the attention of most market participants as gold put in a monster move to the upside in light of risk assets such as the S&P500 selling off sharply.
As of the end of May 2012, gold suffered the indignity of its first "bearish" year after its long-term bull market began in 2001.
I really don't have much to bring your way this week beyond charts.
Tonight I want to bring everyone up to date on the many H&S top patterns that have been forming for sometime now.
There is a lot of lopsidedly-bullish analysis on China in the mainstream press and in the "blogosphere".
"When Injustice becomes Law, Resistance becomes Duty." -- Thomas Jefferson
IT'S TIME TO FACE THE TRUTH
We're still up in the air as to what is going to pass in Europe but perhaps this week we will see.
The fortunes of Europe's beleaguered euro currency have been heavily influencing US markets. Both stocks and commodities have been battered down recently by overwhelming euro bearishness.
The Biblical story is told of a tower built ever higher in order to achieve contact with the heavens, lest they be scattered upon the earth. They were scattered when the tower fell.
Gold's biggest problem since February has been one of relative weakness. This weakness in turn has kept the market-moving hedge fund players away from gold.
"Has gold finally bottomed?" That is the big question we are going to attempt to answer in this update.
It's time to update our long-term weekly charts showing how the gold sector, as represented by the Barrons Gold Mining Index (BGMI), has performed in US$ terms, gold bullion terms and S&P500 (SPX) terms
With a bank run in near full force in Greece and the country on the verge of exiting the Euro while still searching for a leader the world markets are reeling but gold and silver are finally catching a bid.
Gold stocks have been pummeled mercilessly this month, their price action looking almost apocalyptic.
Normally catching a bottom is not difficult. Bottoms tend to occur instantly while market tops form during a process. Yet, I've found that bottoms of long-term significance do not occur instantly.