Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
Gold & Silver Prices in
In the same category

Euphoria Stage

IMG Auteur
Published : December 03rd, 2012
317 words - Reading time : 0 - 1 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...

 

 

 

 

I think we are on the verge of entering the euphoria stage of this cyclical bull market.






The euphoria phase is where the rate of change starts to accelerate as traders become convinced that the economy is booming, and will continue to boom into the foreseeable future (the last bull market), or in this case that QE3 is a magic elixir with no unintended consequences.

During this final phase the character of the intermediate cycles should change and instead of a modest move above the prior intermediate top we will see a strong acceleration and a significant and sustained breakout above the September high of 1475. All of the traders that have convinced themselves that QE is having less and less effect are about to be caught off guard as we move into the euphoria phase of the bull market.

You can see in the chart below that in 2006/07 the intermediate cycle accelerated rapidly past the prior intermediate top at 1326 in a classic runaway move. While this certainly felt good at the time, it was the beginning of the end as the housing and credit bubbles began to implode.




I think we are on the verge of something similar as I believe QE3 will drive the market high enough to test or marginally break the all-time highs. However, it’s also going to start an upward spiral in commodity inflation that will eventually poison this fragile economy and be the straw that breaks the camel’s back.

CHRISTMAS SPECIAL
For the next couple of days I'm going to run a Christmas special, one penny for the month of December. This is only valid for new subscribers. If you have already subscribed to the SMT premium in the past the system will charge you the regular $25 monthly rate. At the end of the month your subscription will convert to the normal monthly charge unless canceled before then.


 

 

<< Previous article
Rate :Average :0 (0 vote)
>> Next article
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.
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Gold: April 2015 Update
30 Marovertheedge
"I have been invited to speak at the Mines & Money Mauritius Conference in June 2015 again. If you would like to join you can receive 25% off your ...
Greece Needs the Magic Formula t...
30 Marovertheedge
Wow dude. "Idiocracy" is obviously not just another dumb-ass movie. I admit that I should have recognized your devotion to Brawndo (it has ...
The Finanser Interviews Jon Matonis
29 Marovertheedge
"In late 2009, I got introduced to Bitcoin by a random email from Satoshi Nakamoto. I didn’t give it much thought at the time and then 3-4 months ...
Gold Effect on Mining & Shale Wa...
27 Maruser4779-1
A jumbled and rambling article, seasoned with hyperbolic rant, but redeemed by interesting information. So 3/5. A good editor could turn this into ...
Oil Surges, Gold and Silver Spik...
26 Marovertheedge
"That a country would choose to directly intervene militarily in the affairs of another country is a dangerous precedent, ..." Precedent?<...
Water Wars Loom Over California ...
26 Marovertheedge
Ellen Brown should stick to what she understands versus geology, hydrology and financially available technology. Example: "With discussions...
Kicked to the Curb
24 MarFalconflight2
I'm both ashamed and disgusted by the government 'of, by, and for the people,' every bit as much as I am ashamed and disgusted by the People.
The Silver:Gold Ratio, 1687-2011
24 Marconey1
"large new deposits of silver were found"? So what was found by ECB that enabled them to cough up an extra trillion euros for failing European econ...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Mining Company News
Trevali Mining(Cu-Le-Zn)TV.TO
Commences Mining at Caribou Zinc Mine in Anticipation of Q2 Mill Commissioning
CA$ 1.09+6.86%Trend Power :
Corporate news
Rockcliff(Cu-Ni-Pl)RCR.V
Solvista Gold Corporation and Rockcliff Resources Inc. Enter Into Letter of Intent Regarding
CA$ 0.04+16.67%Trend Power :
Corporate news
Pele Mountain Res.(Ag-Au-Cu)GEM.V
Executes MOU with Major Chinese Rare Earth Player to Pursue Opportunities of Developing Rare
CA$ 0.05+66.67%Trend Power :
Corporate news
Duran Ventures(Ag-Au-Cu)DRV.V
Signs Memorandum of Understanding for Tolling Operation in Peru
CA$ 0.02+50.00%Trend Power :
Corporate news
Waseco Res.(Ur-Au-Gems)WRI.V
Announces Non-Brokered Private Placement
CA$ 0.04+0.00%Trend Power :
Financings
Metanor(Au-Pa-Pl)MTO.V
Intersects 8.64 g/T Over 5.8 Meters at Bachelor Mine
CA$ 0.04-11.11%Trend Power :
Corporate news
Hudson Res.(Ag-Au-Cu)HUD.V
Reports Robust Preliminary Economic Assessment (PEA) for Specialty Alumina Production From th
CA$ 0.50+0.00%Trend Power :
Corporate news
Western Copper(Cu-Le-Zn)WRN.TO
and Gold Provides Casino Update and Reports Year-End Results
CA$ 0.58-3.33%Trend Power :
Corporate news
Western Copper(Cu-Le-Zn)WRN.TO
and Gold Provides Casino Update and Reports Year-End Results
CA$ 0.46-2.09%Trend Power :
Corporate news
Corona Gold(Ag-Au)CRG.TO
Provides Update on Voluntary TSX Delisting and Application for Listing on Canadian Securities
CA$ 0.31+3.33%Trend Power :
Corporate news
Comments closed
Subscribe to 24hGold’s daily market briefing
  • Prices and data of precious metals in 119 currencies and world mining companies
  • Daily analysis of the economy, markets and more
  • Free, daily and indispensable
Stay informed, subscribe now !
* Your email will never be shared.