"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat
Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput
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Gold loses battle for $1750- needs to push through $1765
The failure by Ol' Yeller to extend past $1750 has tripped some of the shorter term technical indicators into a sell mode. As you can from looking at the blue downtrend line, Gold cannot seem to extend past this line. The positive is that it is also holding the uptrending red support line with the result being a tightening pattern or almost a type of coil that is forming.
Gold bulls need to watch this carefully as a failure to hold above $1650 will send the metal very quickly towards the $1600 level where it must find active buying to prevent a deeper setback in price which could potentially take it first towards $1550 and even towards the $1500 level should it fail to hold there.
A push back through $1765 turns the chart pattern friendly with only a closing push through $1800 allowing for the resumption of a strong uptrending pattern and a test of the all time high.
All eyes in gold are on Europe for the time being as its fortunes are tied to developments there. If the European ministers meeting in Brussels this coming Friday come up with a plan that assuages fears of investors/traders in regards to the sovereign debt crisis there, gold should extend to the upside as the market will move towards the risk trades again. If they disappoint, gold is going to be fighting some very strong headwinds as the Dollar will rally and possibly take out strong resistance near the 80 level on the USDX.
Sorry Dan, but this is getting depressing.
ReplyDeleteIt doesn't get any better than this. We never had it so good.
ReplyDeleteThe cartel pushes down on gold during peak periods of sovereign debt crisis - like now. It's part of their new strategy I believe until the longs can simply blast through resistence. Gold is making a beeline for 1700. Longs are simply put - sick of the cartel's pinning it down at 1750. Unfortunately, there is currently only one side of the trade to make real money on.
ReplyDeleteLooking for a drop along with everything else, except the Dollar. The market will cleanse itself like Oct 2008-March 2009. Holding(less than 15%) very little of anything except a little uhedged miners, small amt of oil etf (times pointing towards war in middle east) short term Govt securities and Cash(85%). Waiting for the drop, then straight up with the miners again. Too volatile and Macro dependent for my blood.
ReplyDeleteHey Dan - Thanks for all you do. I appreciate it.
ReplyDelete