Chart usGOLD   Chart usSILVER  
 
Food for thought
In Gold we trust
.  
Search for :
LATEST NEWS  :
MINING STOCKS  :
Subscribe
Write Us
Add to Google
Search on Ebay :
PRECIOUS METALS (US $)
Gold 1294.08-0.58
Silver 19.630.01
Platinum 1404.500.00
Palladium 794.900.90
WORLD MARKETS
DOWJONES 16409-16
NASDAQ 40969
NIKKEI 1451699
ASX 544532
CAC 40 443226
DAX 941092
HUI 220-2
XAU 90-1
CURRENCIES (€)
AUS $ 1.4802
CAN $ 1.5214
US $ 1.3810
GBP (£) 0.8222
Sw Fr 1.2199
YEN 141.4400
CURRENCIES ($)
AUS $ 1.0724
CAN $ 1.1022
Euro 0.7241
GBP (£) 0.5957
Sw Fr 0.8831
YEN 102.3800
RATIOS & INDEXES
Gold / Silver65.92
Gold / Oil12.37
Dowjones / Gold12.68
COMMODITIES
Copper 3.040.02
WTI Oil 104.590.83
Nat. Gas 4.740.21
Market Indices
Metal Prices
RSS
Precious Metals
Graph Generator
Statistics by Country
Statistics by Metals
Advertise on 24hGold
Projects on Google Earth
Big Moves Coming in December, January & February
Published : November 26th, 2012
533 words - Reading time : 1 - 2 minutes
( 6 votes, 4/5 ) Print article
 
    Comments    
Tweet

 

 

 

 

Well how was that for the start of a new intermediate cycle? While many analysts were calling for continued losses or even a market crash I repeatedly warned traders that an intermediate degree bottom was coming and that markets routinely rally violently out of those bottoms, often generating 5-8% gains in the first 12 to 15 days. This particular intermediate bottom has already gained 5% in just the first five days.

As I've been saying all along, I think the market will easily make new highs in the next two or three months, possibly even significant new highs, or a test of the 2007 top as QE3 starts to work its magic.

That being said, stocks and gold are now due for a short-term breather. Why is that you ask, if all markets have just formed major intermediate cycle lows? The reason has to do with the daily dollar cycle. Friday marked the 24th day in the current daily cycle. That cycle generally runs about 18-28 days trough to trough. At 24 days the cycle is well into the timing band for a bottom and bounce.



 

That bounce should force stocks into a short-term correction, or sideways consolidation, and gold into its next daily cycle low.

 


 

However, don't be fooled by any short-term corrective move as stocks and gold have all clearly formed major intermediate bottoms. There are always corrective moves along the way, nothing goes straight up, but intermediate cycles don't usually form a final top until sometime around week 12-15. As last week was only week 1 of a new intermediate cycle, we probably don't need to look for a final top until sometime in February, or early March.

Coincidentally, that is when the dollar is due to form its yearly cycle low. A yearly cycle bottom is the most severe cyclical decline other than a three year cycle low (the next one of those isn't due until mid-2014). I think we can safely assume that QE3 is going to complete the head and shoulders topping pattern for this particular three year cycle, and just as I said months ago the
dollar topped back in the summer when the CRB index formed its final three year cycle low.

 


 

The dollar should now head generally lower over the next year and a half with brief bear market rallies similar to what we just experienced. This will drive an inflationary phase that should drive all asset prices higher into mid-2013, and commodities into a super spike in mid-2014 (this is when I expect gold to reach its next C-wave top at roughly $4000).

By mid-2013 inflation will start to take its toll on the economy, and stocks will stagnate and begin an extended topping process as inflation continues to surge, similar to what happened in 2007/08.

 


 

I think we will experience the same phenomenon this time as QE3 eventually generates the same unexpected consequences and spikes commodity inflation.

 


 

Traders need to be prepared next week for some kind of corrective move. Understand this is not the beginning of another leg down, but a second chance to get positioned for what should be a very profitable intermediate degree rally over the next 2-3 months.

 

 

 

 

Tweet
Rate :Average note :4 (6 votes)View Top rated
Previous article by
Toby Connor
All articles by
Toby Connor
Next article by
Toby Connor
Receive by mail the latest articles by this author  
Latest comment posted for this article
Be the first to comment
Add your comment
TOP ARTICLES
MOST READ
TOP RATED
MOST COMMENTED
Editor's picks
RSS feed24hGold Mobile
Gold Data CenterGold & Silver Converter
Gold coins on eBaySilver coins on eBay
Technical AnalysisFundamental Analysis

Toby Connor

Toby Connor is the author of Gold Scents, a financial blog with a special emphasis on the gold secular bull market. Toby's premium service includes daily reports and an extensive weekend report.
Toby Connor ArchiveWebsite
Most recent articles by Toby Connor
4/8/2014
3/30/2014
3/9/2014
3/5/2014
2/14/2014
All Articles
Comment this article
You must be logged in to comment an article8000 characters max.
 
Sign in
User : Password : Login
Sign In Forgot password?
 
Receive 24hGold's Daily Market Briefing in your inbox. Go here to subscribe or unsubscribe.
Disclaimer