Gold Editorials & Commentary

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. Last week it was reported that the Fed was considering a new way of putting downward pressure on long-term interest rates.

In this report I want to focus on just some simple but effect indicators such as moving averages and Fibonacci retracements. The first chart shows some daily moving averages that have come into play at some point in the bull market.

GLD - on sell signal.

Scattered diverse and almost uniformly unfavorable and dangerous events are unfolding, as the global economy and financial structure undergoes the equivalent of endless earthquakes and bombardment of solar emissions.

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 article draws on the work of economist George Selgin to argue that the answer to the question is yes, the Fed is a failure.

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

The HUI has been in a bull market since the very end of 2000 and has created one bullish chart pattern after another. On the chart below you can see all these beautiful pit stops or resting periods, in red, before the next leg up could begin.

There can be no doubt that the stock market is moving on to a new phase in its bull market. No kidding, that's all that CNBC talked about this week.

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.

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

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.

GLD - sell signal this week.

Mining shares and the precious metals were hard hit on Wednesday after Fed Chairman Bernanke appeared before Congress. Bernanke gave his view on the U.S. economic outlook during and offered a mixed message.

As we have discussed in a previous article, our Fractal Model suggests the wave for Gold in US Dollars will sweep up into the $3500 to $3600 area into the mid-year time-frame.

This morning we are seeing the US Dollar index move higher retesting a short term breakdown resistance level. What this means is that the dollar fell below support and is not slowing drifting back up to test the breakdown level.

The market has come a long way since October when the price low was established in the major stock averages. It has come even further when compared to its March 2009 bear market low.

With the 'breaking news' on Tuesday morning being the fact that the Dow Jones Industrials had broken 13,000 for the first time since 2008, the immediate spin from the majority of the mainstream press revolved around 'see, its all better now'.

The week was interesting as we basically stalled out for the most part with many US indexes and stocks, especially coming onto the end of the week.

GLD - on buy signal.

"Anti-government extremists opposed to taxes and regulations pose a growing threat to local law enforcement officers in the United Sta

With the 2012 elections looming, politics are increasingly dominating newsflow. And it is only going to get worse, news will be all politics all the time by summer.

"No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, o

Listen to the empty words of the last bailout for Greece. Credibility with the Jackass was lost back on the third bailout, well over a year ago, out of the six bailouts in total. Perhaps it is seven comprehensive final bailouts. The pattern is clear.