first majestic silver

Great Expectations

Both the VIX (S&P500 Volatility Index) as well as the Bollinger Bands Indicators gave us buy signals on Friday, August 31st, which goes along with what I have been talking (speculating) about over the last few months. As you are all well aware, I am convinced that history repeats so looking back, there have been five prior VIX buy signals in 2012 and in each case, stocks were sharply higher within days and weeks of each signal. This goes right along with the Jaws of Death pattern and the new all-time high that I have been speculating on, and we may get the whole of that move in 2012. A preponderance of the time, the Jaws of Death Megaphone pattern sees its final wave reach its upper boundary (not a requirement). While there is always the possibility that this VIX Buy signal could fail, the odds suggest it will not.


Like the Jaws of Death, both the Treasury and Stock Market Bull Traps seem to be aligning themselves foretelling the biggest crash in history.


According to my reading of Bernanke's Jackson Hole speech last Friday, I believe QE3 is coming and will probably be announced at the FED'S September 12th/13th meeting. The speech sounded to me like he was signaling the markets that he plans a strong stimulus program and he does not need to see further deteriorating economic conditions to do so. He used the term "gravely concerned" about the jobs situation. Since the idiotic Humphrey Hawkins Law was passed, the Fed was given a conflicting dual mandate to maintain both price stability and support employment. They clearly have failed at both tasks. Since the employment mandate is not being achieved, Bernanke is convinced that more needs to be done to turn the employment situation around.

Later in the day John Williams, the President of the San Francisco Fed, practically announced that the Fed will be doing a QE3 to stimulate the economy, sooner rather than later, before a negative economic shock hits the system. He emphasized flexibility, without being specific on limits or types of programs. Clearly, this coming QE3 is planned, ready, and about to be announced either during the DNC Convention or soon after.

Bernanke has, as I have previously mentioned, the added incentive to do his utmost to get Obama re-elected, since if Romney wins the presidency, HE WILL BE LOOKING FOR A JOB in the very near future. Listening to Bernanke and Williams on Friday, if both don't believe that the economy is on a growth path, they can at least hope that by passing QE programs hundreds of thousands of jobs have been created, which means they believe another QE program will create jobs. If he wants to continue to be the Fed Chairman, in his mind, he has to do another QE program now and he has the votes. Most of the voting members of the Fed's Open Market Operations Committee are, against all evidence to the contrary, in favor of more immediate stimulus. Like all Liberals, they cannot see any other alternative for creating jobs, which is an absolute must for Obama to win.

Most analysts believe that another QE program will be bullish for stocks (of which I am not so sure), precious metals and commodities as it will definitely fuel the fires of inflation. It could also turn out to be a deflationary step for the US Dollar.

In spite of Friday's large rally, which came on rising volume, stocks tanked after the speech, probably because of those who were disappointed that QE3 wasn't formally announced, but then stocks rallied sharply after the speech was dissected and it was clear that stimulus is surely in the wings. The key now is for TRADERS ONLY to buy the Rhetoric and sell the News.

The key for precious metals is to see if Gold can break out above $1,725, which would convince everyone that the correction pattern is over and that Gold and Silver are headed for new all-time highs.


Regular Rates: $299 for 13 months or $529 for 2 years new subscribers can get a 5 month Trial Subscription for only $99

To subscribe, call 561-840-9767 as we accept most major credit cards or mail a check for the required amount to (do not forget to include your EMAIL address):

Aubie Baltin CFA, CTA, CFP, PhD.

2078 Bonisle Circle

Palm Beach Gardens FL 33418

[email protected]


Please Note: This article is for education purposes only and is designed to help you make up your own mind, not for me to make it up for you. Only you know your own personal circumstances so only you can decide the best places to invest your money and the degree of risk that you are prepared to take. The Information and data included here has been gleaned from sources deemed to be reliable, but is not guaranteed by me. Nothing stated in here should be taken as a recommendation for you to buy or sell securities.

China is poised to become world's biggest gold consumer.
Gold IRA eBook

Gold Eagle twitter                Like Gold Eagle on Facebook