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
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
Is the gold price manipulated?
28 Julkeith95
... if one takes the dumping of an usually high tonnage of gold at an illiquid time in the gold market aka the Monday one week ago - then such 'b...
Gold Reserves and GDP: China is ...
30 JulWilliam Tan
Shakespeare was right; "The world is a stage." Unfortunately we have all the bad actors acting at once.
Iran Agreement Boosts Peace, Def...
28 Julsonora69
You have a point. The 2003 Iraq invasion is mostly now considered an ill-advised and unjustified destabilization, with regional & political consequ...
Why we should abandon the State
28 Julovertheedge
What a gigantic pile of horse excrement. Cherry pick everything that has gone wrong. Completely discount the hard fact that the author and ...
Iran Agreement Boosts Peace, Def...
26 Julkeith95
How about the US invading Afghanistan in 2001, Iraq in 2003 ... leading to the current unrest in the middle east while supporting the 'Saudi's' ......
Take Possession of IRA Metals We...
24 Julericgolub
Internal Revenue Code 4975 language suggests that whether the gold is held directly by the IRA or by an IRA LLC (which is nonetheless still subject...
Gold Miners Nearing Rebound
24 Julsonora69
Silver has already made a 50 cent down and up round trip as of 3:30. This is happening on a Friday, with the stock markets failing to make an advan...
Why Pensions Are A (Big) Black Swan
25 JulS W.1
No (pensions) are not a black swan, which is totally random unforeseen event.
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Mining Company News
Mawson Res.(Au-Ur)MAW.TO
Restarts Drilling at the Palokas Gold Prospect in Finland
CA$ 0.16-5.88%Trend Power :
Corporate news
Goldcorp(Cu-Le-Zn)G.TO
Achieves Record Quarterly Gold Production; Updates 2015 Cost Guidance
CA$ 16.46-1.38%Trend Power :
Production
Claude Resources(Au-Cu-Ngas)CRJ.TO
Provides Date for Q2 Results and Conference Call
CA$ 0.63+5.00%Trend Power :
Corporate news
Richmond Min.(Ur-Au-Gems)RMD.V
- Exploration Update
CA$ 0.09+0.00%Trend Power :
Corporate news
Arianne Phosphate(Ur-Mo-Ti)DAN.V
Extends the Term of Warrants
CA$ 0.86+2.38%Trend Power :
Financings
Anaconda Min.(Au)ANX.TO
Reports 12.83 g/t Gold Over 4.38 Metres and 8.55 g/t Gold Over 4.97 Metres from Channel Sampl
CA$ 0.04-20.00%Trend Power :
Corporate news
Capstone Mining(Ag-Au-Cu)CS.TO
Second Quarter 2015 Financial Results
CA$ 0.90-5.26%Trend Power :
Financials
Taseko(Au-Cu-Mo)TKO.TO
and Soda Creek Indian Band Sign Participation and Cooperation Agreement
CA$ 0.65-2.99%Trend Power :
Corporate news
Tinka Resources(Ag)TK.V
commences 10,000 metre drill program at Ayawilca zinc project, announces new IP results & tar
CA$ 0.18+2.94%Trend Power :
Corporate news
Sandstorm Gold(Cu-Mo-Au)SSL.V
Files Early Warning Report
CA$ 3.13-2.19%Trend Power :
Corporate news
Comments closed