Gold Editorials & Commentary

GLD - on sell signal.

This week ended with the Mr Bear tipping over the portfolio valuation of professional money managers, and individual investors, alike. He's after garbage, and there is no shortage of that in the world's financial markets.

The grinding 6-week-old bottoming process following the stock-market correction is doing its job, shaking out all the weak hands.

What a trading session Wednesday was with the FOMC meeting and the FED coming out leaving the Fed Funds Rate unchanged at 0.25% and saying the economy is looking weak and will not likely to get better any time soon.

Wow!! The billboard signals of extreme crisis are overwhelming. Three years of near 0% with no recovery. A full year of ample USTreasury and mortgage bond monetization with no recovery. Tons of cash aid deliveries to the big US banks with no recovery.

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.