Gold Editorials & Commentary

"A fondness for power is implanted in most men, and it is natural to abuse it, when acquired." -- Alexander Hamilton

The week was owned once again by talk of a debt ceiling. The markets didn't like it and had a pretty hefty fall and annulled any bullish pattern they had. Now we're seeing 200 day averages being tested or close to it for most major US indices.

GLD - on buy signal.

I remember my first sin. I committed it when I was six years of age and in first class. I was a shy and skinny kid. Traits I would eventually lose. My big passion, which continued till age 11, was playing and collecting marbles.

It was an exciting trading session Wednesday to say the least… With all the uncertainty floating around it is causing the stock market to be more volatile than normal.

It's the thick of summer now and I'm trying to take it pretty easy this weekend and perhaps another weekend or two while the warm weather is here.

GLD - on buy signal.

Averaging $96 so far this summer, crude oil certainly doesn't feel cheap. Nevertheless, its technicals are looking increasingly bullish. After recently bouncing out of a major correction, oil appears to be embarking on a new bull-market upleg.

The economic theory in textbooks must be updated to account for Fiat Soft Science. An important third factor determines price. It is not demand, as most Deflationist Knuckleheads claim.

The dollar is and has been in a strong down trend for many years and I feel as though it's getting close to another major land slide. It could take place any time in the next month or so according to my weekly chart analysis.

The big talk these days is of the debt ceiling in the US having to be raised. The US is lucky they can do this unlike other countries such as Spain, Portugal, Greece, Ireland and others who need to be bailed out or pass huge austerity measures.

GLD - on buy signal.

Copper is growing increasingly popular among speculators, who are catapulting this unassuming base metal up into the rarified ranks of market-darling commodities.

"According to the Wall Street Journal, economic experts now fear there may be a second recession: A second recession? When did the first one end?" -- Jay Leno (he must have become a subscriber of mine?)

The past couple months (May and June) have been tough on precious metals and crude oil. But recent price action shows that buyers are stepping back into the market buying up these commodities once again.

On Wednesday gold broke out from a 10-week long box or rectangular consolidation pattern to commence its next major upleg.

Take a short break from all the hubbub in the United States over the faltering USEconomy, the reckless politicians pretending to come to a USGovt budget agreement (small or large), and the tacit admission by USFed Chairman Bernanke that indeed QE3 is very likel

Traditionally, the long-term trends in the stock market and gold are counter-cyclical to each other. But there are those periods of market history where the Dow Jones and gold rise and fall with each other.

(In 2001 palladium reached $1,080/oz when gold was only $300/oz and platinum $715)

It's been an exciting couple months as stocks and commodities have moved like they are a roller coaster at a theme park.

It was another absolutely fantastic week.

GLD - on sell signal.

Thursday, the NYSE 52WK High-Low ratio increased to 8.90%. I was thinking that we may have another pseudo-bull run in the stock market in the coming weeks. Then one day later (today, Friday 08 July) the ratio got knocked down to 1.35%.

In the 19th century a saying, long since forgotten, was current on Lombard Street: "There is nothing easier in the world than the banker's profession - provided that he can tell a real bill and a mortgage apart."

Thanks to their powerful decade-old secular bull, commodities are growing increasingly popular among investors and speculators. Naturally the prudent ones are always looking for insights to optimize their timing in buying low and selling high.

This has been an interesting year for both gold and oil. There has been wild price swings due to extreme political, economic and weather events round the globe making these commodities a little more difficult to trade than normal.

Every few years, a tremendous opportunity arises. The autumn months of 2007 and the autumn months of 2008 offered such an opportunity to buy silver. That $11 silver price is long gone. Many smart folks seized it.

It was another absolutely fantastic week.

The big talk these days is of the debt ceiling in the US having to be raised. The US is lucky they can do this unlike other countries such as Spain, Portugal, Greece, Ireland and others who need to be bailed out or pass huge austerity measures.

A couple weeks back on June 19th I posted my analysis on how the stock market was bottoming and that we needed a couple key sectors to participate before we would get a solid bounce.