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

Fed Balance Sheet Breakout!

IMG Auteur
Published : January 30th, 2013
1021 words - Reading time : 2 - 4 minutes
( 1 vote, 3/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...


1.India's central bank just chopped interest rates, in the face of the worst economic growth in 10 years.“The RBI unexpectedly also reduced the cash reserve ratio (CRR), the share of deposits banks must keep with the central bank by 25 bps to 4.00 percent, which will infuse an additional 180 billion rupees into the banking system.” – CNBC news, Jan 29, 2013.

2.Quantitative easing and “rates to zero” policy is spreading to every major economy around the world.Horrifically, despite these enormous “fire hoses of liquidity”, gold stocks continue their unending slide.

3.By this point in the gold “super bull” market, most gold stock investors believed they would be wearing a crown of solid gold.Please click here now.

4.The market never ceases being a fight, and in a super-crisis, the fight becomes a “clash of the titans”.Gold stock investors have never faced a greater challenge than they face right now, but neither have the bears.

5.To view gold stocks from the eye of a titanic bear, please click here now.In a boxing ring, you can’t run or hide from your opponent.Victory is all that matters, but if you fail to respect the abilities of your opponent, you will lose.

6.Every gold stock investor remembers the carnage of 2008.I bought gold stock into the lows of that carnage. I’d buy into the lows of an even worse gold stock wipeout, if it happened.If you are afraid, buy put options on GDX and GDXJ.

7.If you are a gambling bear, buy put options on NUGT, the triple-leveraged version of GDX.

8.I’ve showed you the bears’ greatest weapon, which is that head and shoulders pattern on the HUI weekly chart.I’ve told you how to handle fear, if you have it.Now, I’ll show you the weapons of the bulls.

9.Please click here now.You are looking at the 14,7,7 series of the Stochastics indicator, on that same HUI weekly chart.

10.I use the 14,3,3 series for the gold bullion weekly chart, but stocks are more volatile.I want only the “cream of the signals crop”, and the 14,7,7 series passes that test, with flying gold stock colours!

11.If you look at the 2005 and 2008 bottoms, you can see that the first buy signal generated by the Stochastics oscillator ushered in a big rally, but then there was a final “washout” decline.

12.From there, a 2nd Stochastics buy signal occurred, and gold stocks staged gargantuan moves higher in each case.

13.You can’t know exactly how the current Stochastics set-up will play out, but it’s clear that in this price area, some buy-side risk capital should be applied to gold stocks.

14.The biggest weapon held by gold stock bulls, is the central bank of the United States, and over the next two days, the bank’s open market committee engages in key policy discussions.The meeting culminates with the release of a statement to the public, at 2:15PM, New York time, on Wednesday.

15.To understand why the central bank is the greatest ally of gold stock investors, please click here now.For all practical intents and purposes, you are looking at the primary driver of the gold price.It is the balance sheet of the central bank of the United States.

16.When that balance sheet stops growing, the price of gold bullion stops growing.Gold enters a trading range, and gold stocks crash.

17.Please click here now.That’s another look at the HUI chart.You can see that stocks topped out, as the Fed balance sheet stopped rising.

18.Note the recent “breakout” on the Fed balance sheet chart.I highlighted that with a gold arrow.For some reason, I like that colour, “gold”!

19.The balance sheet is starting to grow again, which means it is highly likely that the gold price starts “growing” again, too!

20.Please click here now.That’s the daily chart for gold.I predicted a hard sell-off would occur from $1700, likely forming the right shoulder of a bullish h&s bottom pattern.That sell-off did occur, primarily because George Soros made statements in Davos that bonds could fall later this year.

21.I don’t agree with his statements, but I think it gave those who shorted gold at $1700 a way to cover their positions at a profit.

22.The current Stochastics positioning on the daily gold chart suggests that gold could move in either direction from here, but note how orderly this supposed “panic sell-off” has been, from the $1800 area.

23.While Ben Bernanke could surprise gold investors, temporarily, by saying something negative about future QE, tin a practical sense, can the Fed really stop growing the balance sheet at this point in the crisis?Please click here now.That’s the daily chart of the March T-bond.A rally seems imminent, which is good news for gold.

24.I think the Fed plans to grow the balance sheet to well over $3 trillion in the intermediate term, which would create a new intermediate bull leg in the gold price!

Special Offer For Website Readers:Please send me an Email to freereports4@gracelandupdates.com and I’ll send you my free “Gold Options Action” report.In any clash of the titans, huge trending market moves tend to occur, as the winner of the fight is declared!Learn how to use options for insurance, and to speculate professionally!

Thanks!

Cheers

St

Stewart Thomson

Graceland Updates

Written between 4am-7am.  5-6 issues per week.  Emailed at aprox 9am daily.

www.gracelandupdates.com

Email: stewart@gracelandupdates.com

Mail to:

Stewart Thomson / 1276 Lakeview Drive / Oakville, Ontario L6H 2M8 Canada

Risks, Disclaimers, Legal
Stewart Thomson is
no longer an investment advisor. The information provided by Stewart and Graceland Updates is for general information purposes only. Before taking any action on any investment, it is imperative that you consult with multiple properly licensed, experienced and qualifed investment advisors and get numerous opinions before taking any action. Your minimum risk on any investment in the world is: 100% loss of all your money. You may be taking or preparing to take leveraged positions in investments and not know it, exposing yourself to unlimited risks. This is highly concerning if you are an investor in any derivatives products. There is an approx $700 trillion OTC Derivatives Iceberg with a tiny portion written off officially. The bottom line:

Are You Prepared?


Companies Mentionned : Bullion | Signal |
Data and Statistics for these countries : Canada | India | All
Gold and Silver Prices for these countries : Canada | India | All
<< Previous article
Rate :Average :3 (1 vote)
>> Next article
Stewart Thomson is a retired Merrill Lynch broker. Stewart writes the Graceland Updates daily between 4am-7am. They are sent out around 8am-9am. The newsletter is attractively priced and the format is a unique numbered point form, giving clarity of each point and saving valuable reading time.
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Gold: April 2015 Update
07:51overtheedge
"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...
07:28overtheedge
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
Pele Mountain Res.(Ag-Au-Cu)GEM.V
Executes MOU with Major Chinese Rare Earth Player to Pursue Opportunities of Developing Rare
CA$ 0.04+50.00%Trend Power :
Corporate news
Duran Ventures(Ag-Au-Cu)DRV.V
Signs Memorandum of Understanding for Tolling Operation in Peru
CA$ 0.01+0.00%Trend Power :
Corporate news
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
Focus VenturesFCV.V
Completes 70% Purchase of JPQ, Owner of Bayovar 12 Phosphate Project, Peru
CA$ 0.24+0.00%Trend Power :
Corporate news
Coral Gold(Ag-Au)CLH.V
Announces Barrick Drill Results from 2014 Gold Ridge Property Exploration Program, Nevada
CA$ 0.13-18.75%Trend Power :
Corporate news
North Arrow MineralsNAR.V
Discovers Three New Kimberlites at the Pikoo Diamond Project, Saskatchewan
CA$ 0.83+0.00%Trend Power :
Corporate news
Orvana Min.(Cu-Au-Ag)ORV.TO
Announces Appointment of New Chief Executive Officer
CA$ 0.39+4.00%Trend Power :
Nominations
Denison Mines(Ur)DML.TO
Intersects New Zone of Uranium Mineralization at Wheeler River
CA$ 1.01-0.98%Trend Power :
Corporate news
Rockwell(Cu-Gems-Ni)RDI.TO
sells non-core Tirisano Project for a cash consideration of $6.3 million and provides an upda
CA$ 0.24+4.35%Trend Power :
Corporate news
Claude Resources(Au-Cu-Ngas)CRJ.TO
Hits Record Annual Gold Production and Generates 2014 Net Profit of $4.6 Million
CA$ 0.58-4.92%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.