It too often happens that when everyone thinks the same thing the opposite happens. Guess that means that some deep pockets have created the situation to do the opposite.
Gold's dropped $10USD in just 4 hrs - this is either a false negative (bear trap) or a break through last week's tight range to establish a downside bearish trend. Tonight's trading on the NYMEX will confirm either way I expect. Personally I'm hoping on the former but the longer this plunge continues the less likely that's the case. Has June's annual tax-loss-writeoff-triggered slide in the PoG started early? If so, that's surprising given there is unlikely to be the same extent of losses this year that Gold bugs incurred in the 2011/12 and 2012/13 tax years.
I'm bewildered - yes, I know that JP Morgan, Goldman Sachs and other charlatans have been talking down the PoG to buy it cheaper but surely they aren't believed to this extent.
Last edited by Bobcat.; 27-05-2014 at 09:39 PM.
To foretell the future, one must first unlock the secrets of the past.
I'm bewildered - yes, I know that JP Morgan, Goldman Sachs and other charlatans have been talking down the PoG to buy it cheaper but surely they aren't believed to this extent.
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Conspiracy theory Alert!!!!!!!! Are you 'trading to it' Bobcat?
Can it get worse? For sure, bearing in mind that the chart of the S&P doesn't include dividends. Let's hear from Peter Schiff, Mike Maloney, Jim Sinclair, Jim Rickards, Rick Rule and all the other schiffheads.
So we finally saw the breakout last night & to the downside equities also broke the shackles in the US shooting higher on the back of further M&A activity. So lets get this straight. Equities are at record levels & all of sudden it makes sense to pay a whopping premium to takeover a company. Smartest guys in the room or just, mine is bigger than yours? Similar to gold when it shot through $1650 on the way to $1920 very sharply, we are seeing bad decisions being fueled by hype & greed in the equity markets. Gold gave a clear signal when it got over bought & was in bubble territory & equities for mine are now doing the same & I think the resulting crash will also be similar to what we saw in gold.
Hopefully you find my posts helpful, but in no way should they be construed as advice. Make your own decision.
So we finally saw the breakout last night & to the downside equities also broke the shackles in the US shooting higher on the back of further M&A activity. So lets get this straight. Equities are at record levels & all of sudden it makes sense to pay a whopping premium to takeover a company. Smartest guys in the room or just, mine is bigger than yours? Similar to gold when it shot through $1650 on the way to $1920 very sharply, we are seeing bad decisions being fueled by hype & greed in the equity markets. Gold gave a clear signal when it got over bought & was in bubble territory & equities for mine are now doing the same & I think the resulting crash will also be similar to what we saw in gold.
How are your long-suffering clients doing Daytr?
Fact is equities are not in a bubble, gold is a has-been punt, propped up by the 'very smart chinese and indians'. And not forgetting the 'very smart central banksters' who have lost well over $600 billion.
I saw this guy present at Diggers & Dealers about 10 years ago. He's a real showman, knows how to whip an audience into a frenzy. Very smart guy though & worth a read.
Looking at the daily chart you can see that it's likely the breakout will be downwards. A breakout continues in the direction of the original trend MOST of the time, if it goes below about 1275, we're liable to see much lower.
As I predicted 26 days ago. What'll happen when the 'very clever' indians and chinese start to panic?
There you go again - throwing up your historical graphs as though they are relevant for today's decisions...well actually they are but not in the way you suggest. The growing gap between S&P500 returns and those of Gold's since Christmas 2012 would indicate that a sharp convergence is overdue.
The price of gold fell only $5 last night, and it's now holding firm at around 1258. Don't be surprised if we see Gold trade above 1265 tonight, with 1260 confirmed again as a key support level.
Yes, trading to it.
Last edited by Bobcat.; 29-05-2014 at 12:51 PM.
To foretell the future, one must first unlock the secrets of the past.
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Originally Posted by Skol
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