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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.

 

The past couple months investors have been focusing on the equities market. And rightly so with stocks running higher and higher.

There is no indication on gold's long-term chart that its bullmarket is over, it appears to be simply pausing to consolidate after its sharp rise last year.







 



GLD - on sell signal.

Around this point in the fractal cycle in the late 70's, Gold busted out of its channel to rise sharply higher, along with Silver.

In our 19th March commentary, we wrote:







 



GLD - on sell signal.

All in all it was a pretty quiet week in the US markets long with precious metals while we saw a huge and swift drop in terms of US bonds this past week which is not something we see everyday but markets seem to be digesting that n

The beleaguered gold stocks have spiraled lower this month, heaping misery on poor fools like me naive enough to invest in them.

Ben Bernanke's smiling face on the cover of the April issue of The Atlantic is a testimony to how short America's collective memory is.

Recently, I read an article about how Congo born, Dikembe Mutombo, an all-star NBA defender, was nicely scammed in a fake gold deal.

Gold and silver have been in corrections since they both had exceptional rally phases that topped out last year. Gold topped out with a double top, one high in August and the other high in September.

Gold and silver are very close to entering the mania phase of this bull market. In order for gold and silver to go into the mania phase, value has to be diverted from somewhere, and that "somewhere" is most likely stocks.

Recently, I read an article about how Congo born, Dikembe Mutombo, an all-star NBA defender, was nicely scammed in a fake gold deal.

This week may provide some trading opportunities for us if all goes well now that most traders are investors are all giddy about stocks again.

It was another strong week for US markets that is set to power many stocks higher soon.







 



GLD - on sell signal.

The world's stock markets are increasingly interrelated. The psychology of traders, which drives most short-term price action, is continuously shaped by the nonstop torrents of global newsflow.

This week's downside breakout in the T-Bond futures market and the associated rise in the T-Bond yield has prompted us to re-visit the relationship between gold and interest rates.

Lost amid the hoopla after the Dow recently achieved a milestone in closing above the psychologically important 13,000 barrier is another, more significant benchmark. Gasoline prices hit a record seasonal high this week.

Just when we think that Bernanke has exhausted his ability to come up with harebrained schemes to distort prices, he proves us wrong.

In this report I want to focus on just some simple but effect indicators such as moving averages and Fibonacci retracements.







 



GLD - on sell signal.

With Iran waxing belligerent again, oil has been making headlines lately. Stock speculators and investors are anxiously watching its price, gaming how oil stocks are likely to react to various oil-price scenarios.

"Is the Fed a Failure?" is the title of an article by Gene Epstein in the 27th February edition of Barrons magazine.

The HUI has been in a bull market since the very end of 2000 and has created one bullish chart pattern after another.

"By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens" -- John Maynard Keynes

Over the past 5 months we have seen volatility steadily decline as stocks and commodities rise in value.

There is a lot of cycle evidence that suggests a top is coming in March 2012. How significant a top is hard to say, but the odds are the coming decline will be at least in the 10 percent area.

The week was dominated by strong markets and stocks but the main focus was the huge gold and silver smashing which was obviously a successful attempt to take prices down. It was manipulation plain and simple.

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78 percent of the yearly gold supply--is made into jewelry.

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