Gold Editorials & Commentary

GLD - on sell signal.

Europe has become something of a four-letter word among American investors and speculators lately. Weak European stock action has been mesmerizing stock-index-futures traders here in the States.

Looking at Gold and Silver's post-credit crisis Bear's Eye View (BEV) Charts; Monday's decline wasn't much of a Bear mauling on the metals.

A tsunami doesn't start with a bang, but with a whimper. The first sign is a little hump in the water way out in the distance that is barely notable.

We recently witnessed a key bearish "Outside Reversal Week" reaching new highs for the rally from the August 9th crash bottom, but then ending the week lower than it began.

Early August's sharp stock-market plunge ignited an explosion of bearish theories. And with the headline stock indexes still grinding along near lows over the month since, fears of a new bear market continue to proliferate today.

Whenever it suits Team Titanic from the increasingly tense helm, more phony comparisons are trotted out in baseless news stories posing as legitimate analysis.

There are many different industry groups in which investors can risk their investment capital. At the NYSE, people can make (or lose) money investing in consumer goods, high-tech, financial services, basic materials and many other enterprises.

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 that the Fed should continue its large scale monetary sti

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. This is the equivalent move for Gold that we have recently seen Silver making.

GLD - on buy signal.

The Jackson Hole Conference was a dud. To the astute student observer, something happened never seen before. The US central bank chief admitted failure, if only people could properly interpret and translate his words of helplessness and disappointment.

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? A significant number of financial writers have been anticipating discussion of QE III or QE III Lite which clearly were never even on the Fed Chief's radar this week.

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

GLD - on buy signal.

US Dollar Chart

Dollar Commentary

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.

The people who are looking at the gold market as if it's a deflating bubble are ignorant, or more likely ignorant and lazy.

Something big is going on in the United States in a sentiment change, an altered state of psychology, a growing sense of panic. My opinion is that the nation has entered the early stage of comprehension among the population of systemic failure.

After this week, it's safe to say that the dead-cat bounce in the 2007-11 bear market is over. It ran from the March 2009's -53% bottom, until April 2011, when it climbed back to its BEV -10% line.

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. It's just not for me, or most people.

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.

GLD - on buy signal.

"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 and Silver have emerged in the last 12 months as the dominant asset group. They led the entire 2000 decade, still gathering disrespect. They do not require respect from the Wall Street and London crowd.

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