Bear's Lair

Bear Markets always follow Bull markets and a severe stock market correction is long overdue. Bears Lair will spot, monitor and analyze the stock market correction as it develops.

 

Early August's sharp stock-market plunge ignited an explosion of bearish theories.

Gold is trading above $1900/oz once again, pushed up by continuing financial turmoil in the Eurozone, weak US economic data and strong words from a voting member of the FOMC who reiterated his conviction tha

Gold has been rocketing up to and through the price levels that we laid out many months, ago, though a couple of months later than we had expected.






 

The current strength in the gold market is remarkable. Let's look at gold's Bear's Eye View (BEV) from its credit crisis low of 23 October 2008.

Now that Mr. Bernanke's speech is old news, what was the financial media thinking exactly?

It was another week of watching and sitting for the swing trading portfolio.

Fear is the greatest buy signal ever seen in the stock markets. This overpowering emotion flares fast, driving excessive selling that rapidly hammers stock prices down to irrational oversold levels.

US Dollar Chart

It was another absolutely madly volatile week, especially as we moved to the end of it. It's a day-traders bliss, but I'm not a day-trader. It's not an easy way to trade, and every tick counts.

 





 

Gold is now running up through the series of price targets that we laid out early this year, though a couple of months later than we had originally expected.

"No country upon earth ever had it more in its power to attain these blessings than United America.

Gold has enjoyed an amazing rally in recent weeks, catapulted higher by the extreme fear sparked by the sharp stock-market correction.

The past few weeks traders and investors have been completely spooked from the surge of negative news and collapsing stock prices. This fear can be seen by looking at the volume on the GLD gold ETF fund.

Gold has shown impressive strength over the past couple of weeks having risen as high as the $1800 area.

To say it was a volatile week would be an understatement. Wild, fast swings of 400 points or more in the Dow is something we rarely see.

With the plunging stock markets terrifying traders, many are running for the hills. Steep selloffs always generate intense fear, a scary emotion from which we humans are naturally hardwired to flee.

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I didn't get the chance to get to the free weekend letter this weekend and I apologize, but in my defence it is summer and the sunny days have been few and far between this year so with family and friends ho

It's sure been an exceptionally-ugly week in the US stock markets!

I had two purposes in writing today's commentary. The most obvious intent is to help people avoid committing financial suicide in our real estate markets.

All numbers and calculations are destined to turn to zero unless they are underwritten by philosophical underpinnings which themselves have values as well as clear cut, realistic and sustainable str

Back in Mid-May of this year we had a big rally in the Dollar and Gold was correcting hard. There was a bit of Dollar Bull hysteria at the time which I felt was quite unfounded.

Over the past seven trading sessions we have seen stocks plummet in price because of the debt issues in the United States.

"A fondness for power is implanted in most men, and it is natural to abuse it, when acquired." -- Alexander Hamilton

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