Gold Editorials & Commentary

Just as teenagers are going to find out about sex, adults are going to find out about day trading.

Say this for the kids, at least they're using condoms.

Chart Symmetry is designed around the observation that prices tend to change direction along certain preferred gradients. New readers are advised to read the first article in this series to discover how Chart Symmetry works. The link to this article is :

The stock market is certainly taking on all the characteristics of a runaway train, completely out of control and destined for an accident.

Never in the past 71 years has there been a week like last week (week of April 12) which saw the Dow set five consecutive record highs at the same time the S&P 500 Index declined for four consecutive days and key stocks like IBM and Wall Mart declined 10%.

A "B Wave" Rebound. . . or the first phase of a thrust to new highs.

Bankers hate precious metals; they cannot create them, to lend, with the stroke of their pens. Bureaucrats hate them also, for to obtain enough of them from the people to finance their grandiose schemes would require tax rates guaranteed to cause a revolution.

Chart Symmetry is designed around the observation that prices tend to change direction along certain preferred gradients. Different preferred gradients are linked though the Fibonacci ratio.

Distribution under the cover of a firm Dow Jones umbrella . . . has been our straight forward multi-day assessment here.

Earlier in this report, I discussed common misperceptions on how gold behaves during cycles of inflation and deflation.

It was quite an euphoric week for the bulls as they took full advantage of the window of opportunity before the onset of 1st quarter earnings announcements. For the week, the Dow gained 340 points, or more than 3%, and the S&P 500 rose 4%.

Source: Baseline

Chart: Recent massacre of gold by speculative selling

During the last part of 1998 and continuing into 1999, there has been an increasing amount of soul-searching among intelligent people around the world over the condition of our money system, asset market price levels, political problems in many countries, and h

Wednesday's "Popover" stock market. .

Chart Symmetry is designed around the observation that prices tend to change direction along certain preferred gradients. Different preferred gradients are linked though the Fibonacci ratio.

Although scant attention is usually paid by most analysts to the Dow Jones Utilities Average (DJUA), it indeed demonstrates a respectable record of anticipating important turns in the Dow Industrials Stock Index.

In the coming weeks and months, one of the most reliable leading indicators for the U.S. stock market will not necessarily be a broad-market, capitalization-weighted index or momentum indicator.

Well, I suppose the answer has to be yes. Even as you're going down for the third time, with an anchor caught around your neck, and a shark noshing on your ankle, there's a glimmer of hope. But as a practical matter---look out!

The quarter-end rally couldn't quite hold today as the Dow closed at 9,786, after trading at 10,000 this morning (3/31/99).

After briefly again printing Dow 10,000 . . . in early Wednesday trading, the market sold-off a bit, in harmony with our call for what would happen if there was an early rally as opposed to early decline.

Chart Symmetry is designed around the observation that prices tend to change direction along certain preferred gradients. Different preferred gradients are linked though the Fibonacci ratio.

After experiencing a brief correction early last week the Dow Jones Industrials promptly reversed its falling trend and continued its bullish trend by week's end.

Technicals -

Midweek snapback behavior . . . was part of the advance pattern call. And while commencing aerial combat over Yugoslavia (not just Kosovo) complicated the blue-chip backdrop, our market forecast in fact was not dependent on any of this.

The far-eastern financial crisis has spilled over into Russia, and is now threatening Latin America. The American economy is doubtless going to suffer from the same illness, and financial markets everywhere are jittery.

If you have read any of my previous articles, you know I'm pretty consistent with my theme - the gold and silver markets have been manipulated for the past decade and a half by the twin forces of the lending of precious metals and the abnormally large short pos

It has been our plaintiff cry for the last six months that the gold mining stocks, particularly of the undervalued speculative variety, offer by far the greatest potential for profits for the lowest price in today's severely overvalued stock market.

This month I'd like to present another way of looking at aggregate market levels besides the traditional PE ratios, price/book value, price/sales ratio, dividend yields and the other more commonly used approaches.