Gold Editorials & Commentary

Earlier in this report, I discussed common misperceptions on how gold behaves during cycles of inflation and deflation.

It was quite an euphoric week for the bulls as they took full advantage of the window of opportunity before the onset of 1st quarter earnings announcements. For the week, the Dow gained 340 points, or more than 3%, and the S&P 500 rose 4%.

Source: Baseline

Chart: Recent massacre of gold by speculative selling

During the last part of 1998 and continuing into 1999, there has been an increasing amount of soul-searching among intelligent people around the world over the condition of our money system, asset market price levels, political problems in many countries, and h

Wednesday's "Popover" stock market. .

Chart Symmetry is designed around the observation that prices tend to change direction along certain preferred gradients. Different preferred gradients are linked though the Fibonacci ratio.

Although scant attention is usually paid by most analysts to the Dow Jones Utilities Average (DJUA), it indeed demonstrates a respectable record of anticipating important turns in the Dow Industrials Stock Index.

In the coming weeks and months, one of the most reliable leading indicators for the U.S. stock market will not necessarily be a broad-market, capitalization-weighted index or momentum indicator.

Well, I suppose the answer has to be yes. Even as you're going down for the third time, with an anchor caught around your neck, and a shark noshing on your ankle, there's a glimmer of hope. But as a practical matter---look out!

The quarter-end rally couldn't quite hold today as the Dow closed at 9,786, after trading at 10,000 this morning (3/31/99).

After briefly again printing Dow 10,000 . . . in early Wednesday trading, the market sold-off a bit, in harmony with our call for what would happen if there was an early rally as opposed to early decline.

Chart Symmetry is designed around the observation that prices tend to change direction along certain preferred gradients. Different preferred gradients are linked though the Fibonacci ratio.

After experiencing a brief correction early last week the Dow Jones Industrials promptly reversed its falling trend and continued its bullish trend by week's end.

Technicals -

Midweek snapback behavior . . . was part of the advance pattern call. And while commencing aerial combat over Yugoslavia (not just Kosovo) complicated the blue-chip backdrop, our market forecast in fact was not dependent on any of this.

The far-eastern financial crisis has spilled over into Russia, and is now threatening Latin America. The American economy is doubtless going to suffer from the same illness, and financial markets everywhere are jittery.

If you have read any of my previous articles, you know I'm pretty consistent with my theme - the gold and silver markets have been manipulated for the past decade and a half by the twin forces of the lending of precious metals and the abnormally large short pos

It has been our plaintiff cry for the last six months that the gold mining stocks, particularly of the undervalued speculative variety, offer by far the greatest potential for profits for the lowest price in today's severely overvalued stock market.

This month I'd like to present another way of looking at aggregate market levels besides the traditional PE ratios, price/book value, price/sales ratio, dividend yields and the other more commonly used approaches.

Where to now?

Better ask your Ouija board, since no one can predict with any certainty whether Dow 10000 will be the bull market's last hurrah or merely a fuel stop on the way to the moon.

President Clinton and Treasury Secretary Robert Rubin are currently proposing the sale of $1.5 to $3.0 billion worth of IMF gold reserves for the purpose of debt forgiveness to benefit the world's poor.

I heard another analyst today interviewed by the financial media say when commenting on Dow 10,000, "that's all anyone talks about." Another analyst said he couldn't wait until the Dow reached that level "so we can all get on with our lives." Seemingly all of t

Chart Symmetry is designed around the observation that prices tend to change direction along certain preferred gradients. Different preferred gradients are linked though the Fibonacci ratio.

As expected, it was a wild and particularly challenging week with "triple witching" options expiration. Today (March 19), the Dow traded as high as 10,085 but closed at 9,904. For the week, the Dow rose 27 points and the S&P500 gained about ½ of 1%.

One of the great risks investors face now that we are at the peak of greatest bull market in stocks the world has ever seen, arises from a widespread ignorance and bias against gold as an investment.

If you're in Asia, you're already "enjoying" a bull market in gold, although I must note that the word "enjoy" may not be very appropriate since many are struggling to survive the bursting of the speculative bubble.

Not much "green" seen. . . on this Saint Patrick's Day, as repeated declines were aborted by the press of equally frequent rally efforts.