Here is what we posted before easter on the market. Think it is a bit bullish here right now. Especially with this inverted head and shoulders that is about to break.
I am targeting 1400 on the S&P in the coming weeks. There are lots of bears out there, and that only adds to the case this market could be ready to melt up a bit.
I’m typing this from the my car so I hope this is able to get through to my blog. I will try to be brief and to the point!!
It is obvious from the chart below, that every man and his dog is going nuts over gold. And if you are a subscriber to our newsletter you would probably realize why. YES there are many economic problems that are continuing and they will not go away quickly like the governments around the world keep saying. Last time a similar event occurred, many people flocked to gold. Those people made a great money, and others learnt a valuable lesson. Now we are just seeing history repeat itself.
Have a look at the chart below.
I have been holding gold for a long time, and have been buying on the big dips so it has been paying off big time. I am also a buyer of bullion and gold coins, which has sort of become a little bit of a hobby now. BUT I MUST TELL YOU SOMETHING VERY IMPORTANT! The way I have been making money on gold is on BUYING the big pullbacks. I feel that this massive move up in gold prices has happened to quickly and caught people in a panic, not to GET OUT OF GOLD, but to GET IN!!!! and quickly. And now we are back at previous highs, and what I would call in a double top area. This can sometimes sound the alarm bells, for a down move.
We are now seeing a double top in gold here and there is a bit of resistance. If you own gold, good for you! but if you are intrested to buy gold for the long term, it is probably better off to wait, as I have been. If commodities come under a little bit of pressure, due to continuing deflation, we could see prices come WAYYY down. But if that occurs, it will be time for you to become a gold shark, and put your money down on the table, as I have described above.
BUYING HIGH AND SELLING LOW, is the quickest way to go broke as an investor. SO remember BUY LOW, SELL HIGH and you cant go wrong. If gold starts falling…say 100 pts or so, we could see more of a significant sell off after. So, BUYER – BEWARE!!! In no way am I saying dont buy gold, but just be careful at these current levels.
I am a bully old boy in Gold at the moment, and I seem to be sharpening my horns as of late. Anyone that knows me understands that I have been buying this bad boy since about the 500 / ounce level. Even back then every man and his dog said there was NO CHANCE it would go higher….WELL sorry to say….IT DID.
If the US dollar goes down the tube, then this is going to do even more to strengthen the current gold prices..Now the pattern in gold is very interesting as of late, and as one of those sneaky yet dainty chartists I had some spare time up my sleeve so instead of getting into other mischievous activities, I thought would help you out and post a quick little analysis on what I think about gold at the moment..
I think this is where I should MOO… and warn you, this is quite boring analysis, but I guess not as boring as the life of a bull!!
The way the economy is at the moment, you might feel like you have a noose around your neck. Not the big boys, these economic bailouts have given them the chance to keep their big houses, expensive cars, fat bank accounts, mistresses…. Need I go on?
This Economic bailout rally has not really done much for you and me but?. The Economic Bailout rally, is my terminology for what has been going on lately. Bailout this, bailout that. That money tree in the backyard of the government seems sprouting furiously. How convenient! It’s like having your favourite fruit tree in the backyard, only when you pick off one piece of fruit miraculously and almost instantaneously two pieces of fruit grow in its place!
In all my 15 years as a trader I have never seen the crazy actions and reactions I have seen in this current market environment. If you understand a little bit about how this crazy world operates, you would understand this saying “Always Expect The Unexpected!” These economic bailout plans and actions went down quite well at first, but people are slowly waking up to what is going on now. Especially those that read my blogs or posts.
ANYWAY…
I was going through my charts earlier this morning and a few things literally jumped out of the page at me. Got me a little bright eyed, but that might have something to do with the 8 or so coffee’s that I had put away before lunch.
Below I explain this Economic Bailout Rally (with a chart) a bit more in detail, and 3 critical things that have gone on during this hyped up, don’t-worry-this-recession-is-nearly-over ” Economic Bailout ” rally…
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