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Bear's Lair
Bear Markets always follow Bull markets and a severe stock market correction is long overdue. Bears Lair will spot, monitor and analyze the stock market correction as it develops.
We always look to a new year with a great deal of HOPE, but this year there is also a fair amount of trepidation.
The purpose of this high level analysis goes beyond an attempt to explain why an economic depression is virtually inevitable. It seeks also to identify a possible pathway out of the economic quagmire.
A weak start and strong finish to the week for gold and silver should have set you up for a great weekend.
In this most tumultuous year for the financial markets, gold bullion rose 5.8%. In so doing, it outperformed all asset classes and investment strategies other than unadulterated short selling.
"Accepting losses is the single most important investment device to insure safety of capital. It is also the action that most people know the least about, and are least likely to execute.
The 3 main predictions made over the past several weeks have come to pass - bonds have topped out and come close to completing a Head-and-Shoulders reversal, the dollar index has rallied further to our target in the 84 - 85 area an
While gold was extremely popular the past few years, I think it's safe to say crude oil is unbeatable for popularity, as it's a resource which almost everyone uses on a daily basis and it affects all of us in the wallet when oil pr
The earth itself provides many valuable analogies for massive dislocation in the relief of grand energy differentials.
As I crank up Dylan's great album "Before the Flood" disc two, the bank bailouts have once again been pushed to the forefront this past week like the second round of the flood which in many cases is more devastating than the first.
I find from time and time that gold stocks tend to lead the price of gold during extreme times and as I mentioned in last weeks report the HUI index has warned us up to 7 days in advance, before gold made sizable drop.
Just what is the link between retail gold coin prices and the apparent manipulation of gold futures & options...?
“Time is more important than price; when time is up price will reverse.”
W.D.Gann
"If you don't use your eyes for seeing, later you will use them for weeping."
F.W. Foerster
WORLD WIDE RECESSION
Last week gold and silver remained in a trading range moving sideways, while crude oil had a large pullback on very heavy volume.
It was a rather slow week in the gold company news sector but the mine closures and spending cuts continued.
There are those who are arguing that the equity markets are due for a bounce - maybe even an upward surge in prices. Some are very seasoned analysts who have decades of experience under their belts.
Gold traders should have exited today as prices are showing strong signs of lower prices in the near future. Gold slid over 4% this week so far, while gold stocks have dropped an average of 9%.
The marquee line best describing the past two to three months has been that the Dollar Death Dance has been fueled by failure of US banks & corporations, along with sponsored assaults against speculative hedge funds.
We've been here before haven't we? Gold has been in a rising trend for some considerable time, taking it to trendline or resistance targets, and then "wham!" it gets whacked back down again.
Gold Trading: Gold closed higher for the week with very low volume due to the holidays. It is difficult to get a feel for where stocks and commodities are headed in the near term because of this light volume.
There are some important similarities between the present and the 1930s.
Happy New Year
As is obligatory for commentaries written on January 1, I offer my wish for readers to be healthy, safe, happy, and prosperous throughout the new year.