Category Archives: Metals

Bears Will Be Bears

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Another classic V shaped day with a very strong gap down where the gap was filled by the close. Pretty much par for the course for the feeble bears of 2014 and unlike the low on Monday last week, the low yesterday is a decent candidate for a post 5 DMA run retracement low.

Yesterday morning I gave my target range on SPX for this retracement as 1995-2033, with a likely retracement low time area between yesterday and tomorrow with an ideal low made today. Yesterday’s low was at 2034.17, so that was effectively a hit of the target range, within the target time window. I’m counting that stat as played out now, and any further downside is a bonus before the continuation upward that I am expecting.

On the daily chart the low yesterday was two points above the lower band, which I count as a hit, and the close was two points above the middle band, which I count as a hit of the middle band rather than a break back above it. We may see a reversal back down here at the middle band, but if we see a close (3+ points) back above that today the break back up should be respected. There are still open daily sell signals, but they won’t be invalidated unless RSI breaks back above the higher of the divergent RSI highs, and after this retrace we could run up to over 2100 without invalidating these. SPX daily chart: (more…)

The Way Is (Probably) Shut

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SPX made yet another marginal new high yesterday making a total of five new all time highs over the last two weeks, all in the 2070s within a total range of less than six points. That’s a lot of effort from the bulls to fail to get get over what has so far been extremely stiff resistance. In the event that the bulls are unable to push through this resistance , or spike through but can’t sustain trade over the 2070s, there is now a very nicely formed pair of nested double tops lighting a path down to a retest of broken resistance at the 2019 high. SPX 5min chart:

141205 SPX 5min Nested Double Tops

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Huey, Dewey & Louie

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huey.dewey.louieLooking around the gold sector at some of those who have tried to keep ‘em bullish all the way down. The peddlers of hope are irrepressible.

Huey writes that gold stocks are well supported by the enormous expansion in the global gold jewelry business. In fact, according to Huey Western mining stock shareholders stand to reap substantial reward from the relentless growth in gold jewellery demand.

Do you hear that? Not just have an end put to their misery but if they will just hang in there a while longer they will be in line for a substantial reward… all due to a supposed fundamental underpinning that has nothing to do with the investment case for gold miners… and is not nearly the best driver for gold either. Keep bafflin’ ‘em with bullshit Huey. All the way down… unbelievable. (more…)

Goldzilla

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goldzilla“History shows again and again how nature points out the folly of man” –Blue Oyster Cult, Godzilla

I would have written off the gold sector long ago in its ongoing bear market had I thought for one moment that gold’s utility as insurance against the acts of monetary madmen/women in high places had been compromised in any way. On the contrary, the monetary metal is simply having its price marked down in a bear market while its value, especially given its current price and all that has gone on in the financial system over the last 3 years remains just fine.

Indeed gold, an element dug out of the ground for centuries, once as money and now as a marker to sound money systems will one day be shown to be a calm oasis from the fallout to global monetary shenanigans currently ongoing. At least it would be an oasis to those who have valued it as such. It is going to feel like a giant dinosaur (minus the kitsch value) ripping through a city built on paper to the multitudes who have taken the bait on the current too big to fail global inflationary operations. They will fail. Timing is the only question. (more…)