Gold

Stocks Rally Powerfully

This continues to be a range-bound market, although we are in the midst of a powerful rally fueled by hopes that the European crisis will be addressed. Well these hopes are misguided because fundamentally a single currency needs a single debt. Until European leaders figure this out, nothing will change. The 50-day moving average was breached today, which is a constructive. However, I wouldn’t feel too comfortable about the sustainability…

Fakeout Moves Before the Gold Rally

I look for fakeout moves. For example, following the “fat finger” waterfall crash last year, there was a major rally. The spike rally in silver earlier in the year was a fakeout move in reverse. Sustained rallies and sell-offs tend to last longer than people expect, but eventually the opposite trend emerges. The market gets just enough people bulled or beared up before a suckerpunch move. This is what makes…

Patience As the Crisis Unfolds

All bears are not created equal. Some are deflationists, some are inflationists. Some predict the end of the world on any stock market correction, some are buyers on corrections. While I’ve warned that the future is very bleak, I’ve also always cautioned that you need to get the timing right. The big crisis is NOT here yet. Let Europe collapse first, then let’s start talking. I’m sure the panic surrounding…

Monster Correction in Gold

Right when I say I’m going to take some time off unless something major happens, gold falls $100. Interesting. I guess I’ll have to comment on today’s move. I said earlier this week that when a correction came, it would be a monster correction. There were basically two scenarios for gold: 1) a rocket launch to unbelievable levels, and 2) a monster correction. We now know it was the latter….

Volatility is Here

As I write this, gold is trading at $1710 in the overnight markets and Asian stocks are selling off. This debt crisis is finally coming front and center. What happened to the “green shoots” economic recovery? The truth is volatility is here and things will get far more interesting. Gold and Silver Gold and silver have been in a cyclical uptrend the past decade. Cycles¬†oscillate¬†up and down around a prevailing…