Gold Editorials & Commentary

This week, the professional stock market boosters, who masquerade as wise market commentators, filled the airwaves with celebratory musings on the significance of a record high Dow.

This article is taken from a September Special Report for subscribers to the Hat Trick Letter, a piece of the same name. Several paragraphs are deleted which appear for paid subscribers, while others are shortened to manage the length.

The free traders can think of only one thing it seems, and that is cheap consumer prices. While I love cheap prices, I abhor "free Trade" as I wrote in my book, which is now five years old.

There's the housing bubble and the commercial office space bubble. There's the Bond-market bubble and its two progenies, the junk-bond market bubble and the emerging-market-debt bubble.

Below we show all the Fibonacci phi mate turn dates so far for 2005 and 2006. The yellow arrows show the trend reversal that occurred each time.

Inter-market relationship is very complex , and like price itself, is dynamic and subject to constant change. One of the most influential factors in the financial markets is interest rates.

The charts below (courtesy bigcharts.com) shows a comparison of the Dow Jones Industrials relative to the S&P 500 going back 30 years. (quarterly) and 3 years (daily)

Two interesting points which emerge are:

In the past two weeks I was treated to two particularly moronic public statements from market experts.

Once in a while, a worthwhile exercise challenge is to think "out of the box" on an important topic. This article focuses on housing, and in particular Fanny Mae, the weakest among the Govt Sponsored Enterprises (GSE).

Ever wonder how it came to be that everything we use and need, seems to be made in China? I often wondered, and now a fantastic piece by the Washington Post, explains it all.

With regard to silver coinage, Mexico has followed the model established by the Roman Empire 2,000 years ago.

In the last update posted on the 17th it was predicted that gold would stage a rally to alleviate the oversold condition that existed at that time, and that this rally would take it about $595 before it reacted back again. Today gold attained $594.15 intraday.

Inflation

One can't help but feel a sense of dread about the consensus views on the risks of inflation. "With oil dropping there is no longer a risk of inflation" Really?

The gold smashup - that's what gold bugs have faced over the past several weeks. Just two weeks ago gold appeared to be poised to breakout and begin another big bull run. Everything seemed to be lined up.

"How to win friends and influence people". This was the catch phrase of Dale Carnegie - a guy who offered a self improvement course a couple of generations ago.

Over the past several weeks, oil and gas prices have fallen sharply, prompting many to conclude that the bull market has finally run its course.

There are several possible scenarios for the world's and US economies. They involve currencies quite naturally, because it is the various currencies which are used to buy stuff around the world.

To listen to the Bears over the past few years, you would have thought we would all be in breadlines and soup kitchens by now. So far, all of the ranting about doom and gloom sounds more like the boy who cried wolf than accurate forecasting.

Years ago (30 to be exact) when I began buying stocks, the only source to check how the portfolio was doing was to read the weekend financial section of the newspaper. Back in those days, short term meant a few months.

I have received questions asking why strongly suggested in the August 8 and August 15 editorials that the "HUI Fractal" work that I do suggested that we would see a new low for this corrective phase, yet I decided to focus on the upside.

Failure of support in the $600 area has led to gold dropping back into the target zone for this move - the $560 - $580 area.

Over the past several days gold prices have plunged by over $60 per ounce and silver prices have dropped by close to $3 per ounce. Popular excuses for the carnage include lessening tensions in Iran, falling oil prices, and diminishing inflation fears.

Last week it seems my "Bond Market Has It Right" stirred up a little hornet nest under my doorstep. Ok by me, since most feedback was in agreement and positive.

With the release of the U.S. Mint's new pure gold American Buffalo gold coin, First Strike coins have again become telemarketers' favorites. Despite the U.S.

Ever hear the line, "With a friend like you, who needs enemies?" Not bad, and it seems to this scribe that it applies to several items and institutions.

Gold has been correcting for 4 months since the 12 May 2006 peak. It is time to consider whether the correction is nearly over or whether we can expect more down or sideways action.

Judging from the emails I receive from the public, there are more traders than I expect who pay attention to my commentaries, and therefore, I feel somewhat obligated to provide ongoing guidance, and our course of action.

The Office of Federal Housing Enterprise Oversight (OFHEO) was created as an independent entity within the Department of Housing and Urban Development, a department of the Government of the United States.

References and claims have been made lately that the US Treasury market has it wrong, that the long-term yields should be much higher in accordance to the troublesome stubborn rising price inflation.