"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


Monday, May 12, 2014

Gold Chart

A quick update for those interested in observing the price chart... the metal bounced from support near $1280 on continued Ukranian unrest. That continues to reinforce the significance of the level. If it goes ( on a closing basis ) watch for a significant round of speculative long side liquidation.

One thing I am noticing is the series of LOWER HIGHS being made in this market. Each time it manages a pop from Ukraine events, the high is made at a lower level. That tells me that the events there are losing significance in the mind of many traders and that it is going to take a much more severe flare up in tensions to enable the bulls to push past chart resistance levels. The region near $1320 should hold any bounce to keep the picture bearish. A push through that level, particularly if it can breach $1330 or so, would spook a lot more bears. If not, they will use the rallies to sell.

I am watching to see if gold can manage to sustain any sort of closing price above the $1300 level.

The HUI is stronger today holding above support between 218-215 but remains well off any resistance levels.


  1. where you see lower highs , i see a broken downtrend , then higher lows and higher highs …. aren't charts wonderful ?! best

  2. Traders are now selling gold into strength as it has faded all day long.

    Meanwhile, the economy continues to improve as investors are shaking off Ukraine and once again buying the "Glam" stocks like CRM, TRIP, UA, NFLX, FB, BIIB, all of which are up 3% - 6% on the day.

    Russell 2000 is a paltry 3.5% off its world record highs, despite the "horrifice correction", whilst GDX is still flopping around like a dead fish near decade lows.

    And it appears like SPY will join DIA today to close at fresh, new world record highs.

    Stay in the System.

    Avoid the Q & A broo ha ha........

    1. "Wisdom is the reward you get for a lifetime of listening when you'd have preferred to talk.

      Doug Larson"

    2. And that quote is not ment for Mark...

  3. Dan
    I have read Russia has 54% of Platinum and Palladium mine production...As far as I am concerned we are now at war with Russia...these metals are essential to the U.S. automotive industry...Why cant Russia sanction or withhold supplies to the U.S. (their enemy) as we enter the war cycles?

    1. As far as I can remember, Putin and Lavrov are still talking about US / Europe as their partner.
      Strange way to talk about an enemy.
      War will come soon enough, don't push for it :)

    2. you know Hubert , sometimes I wonder if this is a case of the frog and the bowling water … more than 60 people were murdered last week on both sides , and you have people commenting about scaling things down … in my opinion the next obvious thing to happen is russians entering the ukraine at some point … If that crazy woman tymoshenko gets elected , and she probably will , she even threatened of a revolution if she didn't … so much for democracy , huh ? , things are going to get real nasty in the ukraine … the poor ukranians , are fucked , any way you put it … this is like germany and russia dividing poland amongst themselves … i am not saying we will have a full blown out war , but a nasty civil war is already very likely . Its going to be a looooong summer … , and then a precarious fall , winter for these poor people . But hey … everything is fine … Mr market says so … i guess a conflict in europe works out nicely for the US . Otherways I just don't understand the need for all this , and why are the amerikans so aggresively pushing both sides into another stupid and needless war.. and most importantly , how come europeans don't seem to give a shit , I find this whole thing quite surreal… who was going to say a few months ago … we really are puppets

    3. Anon,
      You always complain about how we should be sticking to trading, charts and stuff and not give any opinions outside that realm. Now, you seem to be assessing the European geo-political events and extrapolating from little (mis) information provided by doubtful media. perhaps you meant everyone but you.

    4. " how come europeans don't seem to give a shit".
      After 2 world wars, you start getting used to it...

    5. " how come europeans don't seem to give a shit".
      Plus now we have Facebook and Candy crush, it's more interesting.
      Good night, all.

  4. well , I think this topic has a lot to do with the market , but you are right i guess , not much added value … was just thinking aloud , will keep it to a minimum … but since I am at it , I must tell that for the first time I just saw about 10 minutes ago a freaking drone the size of a shoe box flying straight level flight above my house …! I thought it was a toy at first , but that was no toy … it went straight perfect flight , red light , until I lost sight of it , about 300 meters high i guess … holy shit ! I am in the south med , perhaps checking out contraband across the straight … holy shit ! first time I see one , it freaked the crap out of me

    1. If you see a small red spot like a small light somewhere on your body, then you can start being scared :)
      This is big brother, my friends, get used to it and learn Kung Fu to fight agent Smith.

  5. Ukraine is in the preliminary stage of a civil/financial war...
    Nato could be in W. Ukraine by July...A private army (Blackwater) is involved...Russia is sending mercenaries/private army into E. Ukraine....The U.S. crossed the line... Russia will have no choice as conditions escalate but to enter and liberate the people under attack in E. Ukraine

  6. Just remember fellows, that in these frightening situations that the first casualty is the TRUTH. Do not jump to conclusions; swb


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