|
1. The gold market feels like the Indy 500 track on race day. All the cars of the precious
metals sector are revving their engines on the start line.
2. The junior gold stock sector seems to be revving its
engine the loudest of all. To get a visual picture of why I hear that sound,
please click
here now.
3. I’ve compared GDXJ to CDNX, and you can see
that a head & shoulders bottom pattern has formed, suggesting that junior
gold stocks are poised to significantly outperform the general junior
resource sector.
4. Both the GDXJ daily chart and the 30 minute chart
have very bullish patterns in play. Please click
here now. Indicators like MACD are moving higher and selling has dried up.
5. When few sellers remain in an oversold market,
strongly bullish news can send the price higher surprisingly quickly.
6. Please click
here now. This 30 minute chart showcases an island bottom. GDXJ is
currently “chewing” at resistance in the $19 area.
7. I expect GDXJ will burst through that resistance and
charge higher, but it’s important to remember that charts show
investors a picture of what is probable, not what is guaranteed.
8. The most probable scenario indicated is that GDXJ
makes its way to the dotted black line I highlighted on the daily chart at
$27.16, but Ben Bernanke could throw a monkey wrench into our victory dance.
9. Dr. Bernanke is scheduled to speak publicly today
and tomorrow. There’s no question that the “recovery” has
lost steam, and it would seem logical that anything he says should be
supportive for gold.
10. Unfortunately, some money managers believe that Dr.
Bernanke is concerned that not enough effort has been made on the “austerity front” by congress,
and he is withholding further QE until a bigger crisis develops.
11. I don’t think he would do very well in a
battle against the US Treasury. The decision to devalue the US dollar is a
decision that can only be made by the Treasury.
12. If Dr. Bernanke gets overly forceful with his
austerity ideas, the current administration could
order him to focus on diluting the value of the dollar, so they can maintain
their spending levels.
13. If a monkey wrench does arrive on the GDXJ scene,
and the price drops below the lows at $17.37, it is critical that rather than
panicking, you are able to buy that
decline.
14. Please click
here now. You are looking at the daily gold chart. A small but bearish
head & shoulders continuation top pattern has appeared.
15. For a second interpretation of the current trading
range, please click
here now. Symmetrical triangles can be reversal patterns, but usually
they consolidate an existing trend.
16. These gold charts suggest that investors in the gold
community need to be on their toes, because the jury is still out in regards
to whether gold has bottomed or not.
17. One concern of institutional money managers is that
in the short term, weakness in the stock market could affect gold.
18. Please click
here now. That’s a 60 minute chart of the Dow, and the bullish head
& shoulders pattern suggests that traders are anticipating some good news
from Dr. Bernanke.
19. Gold is view more as a “risk on” asset
right now, so any events or news that is positive for the Dow is also going
to be generally positive for gold.
20. If Dr. Bernanke does say things today that are
negative for the stock market and negative for gold,
I think he would make President Obama and Tim Geithner quite angry.
21. Any “Bernanke
Sell-off” in the risk-on markets is likely to result in President
Obama reading him the riot act. I think the entire Fed would quickly reverse
course and begin to make a lot of statements that are positive for both the
Dow and gold.
22. Whether there is one more small sell-off in the gold
market or we have completely bottomed is not really very important, because
of the enormous upside potential for the gold price.
23. Rising commodity prices have not gone unnoticed by
the Fed. Please click
here now. The CRB is a general commodity price index, and it has just
pushed above key resistance at about 293.
24. Ben Bernanke knows that the economy is slowing down while commodity prices are rising.
That’s not a good situation and it puts him in a position of being between a rock and a hard place. As US
elections approach, I believe this conundrum must be resolved in favour of
monetary easing, and therefore in gold’s favour too, or Ben Bernanke
risks being the recipient of President Obama’s wrath!
Special Offer For Website Readers: Please send me an Email
to freereports4@gracelandupdates.com
and I’ll send you my free “Heavy Hitters” report.
I’ll show you five of the hottest junior gold stocks in play now, and
where I would buy them with substantial amounts of risk capital!
Thanks!
Cheers
St
|
