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1.A week
ago, gold rose towards key resistance.The resistance is defined by the 2013
price point of $1320 and the 2015 price point of $1307.It reached about
$1306.As it did, I called the market a "profit booker's delight".
2.Gold
price enthusiasts should not take my statements as a "top call",
and I just booked profit on a tranche of short positions.Traders can
rebuy now, in hopes of a new price surge to above the $1300 area.
3.Please
click
here now. Double-click to enlarge this four hour bars chart of gold.It's
possible that the next rally is delayed a bit, and gold drifts a bit lower,
towards the apex of the large blue triangle I've annotated on the chart.
4.That's
because the Bank of Japan is apparently trying to scare the market that it
will sell the yen against the dollar.
5.Please
click
here now. Double-click to enlarge this key dollar-yen daily chart.The
dollar has declined substantially in 2016 against the yen, and a rally of
some size is to be expected after such a decline.
6.A
dollar-yen rally can put some additional pressure on gold in the short term,
but the interventionists may find that their plan to rally the dollar
backfires, or doesn't even get off the ground.
7.On
that note, please click
here now. An attempt by the Bank of Japan to buy dollars now could
provoke a huge outcry from politicians in America.
8.Donald
Trump is an avid fan of a lower dollar, and the Democrats would not be happy
to see the US trade deficit spike higher because of a dollar rally, as the US
election approaches.
9.Tactics?Investors
can buy some gold now, and more if it declines to the triangle apex zone of
about $1250.
10.In the
big picture of American gold price discovery, the potential election of Donald
Trump is starting to get taken very seriously by some of the world's most
respected business publications.
11.They
are suggesting his policies could be extremely positive for the price of
gold.Please
click
here now.I find this news to be tremendously positive for the price of
gold.
12.In a
nutshell, as the world's largest empire of debt enters its twilight years,
its citizens may elect a president known as "The king of debt"
to stiff all their creditors.
13.Please
click
here now.Clearly, influential publications like Barron's understand the
powerful link between debt and the price of gold.The scare tactics being used
by Japanese authorities will have no more than a short term negative effect
on the price of gold against all fiat.
14.I've
predicted that the world is on the cusp of a sea change, where American
T-bonds begin a huge new leg down against gold, and the yen loses its
safe-haven status.Within a few years, and perhaps sooner, the Japanese scare
tactics will backfire, and create a surge into gold.
15.Please
click
here now. Double-click to enlarge this spectacular Bombay Stock Exchange
(BSE) index month monthly bars chart.
16.If US
politicians really want to make America great again, they will tell their
citizens to invest their savings into gold and the Indian stock market.
17.The
bottom line is this: While the buyback-bloated US stock market struggles in
technically overbought territory against a background of horrific
demographics, the young business-oriented titans of India are poised to
launch their stock markets into higher price mode, for decades to come.
18.Please
click
here now.Double-click to enlarge this monthly bars chart of the Dow.The
uptrend line has been tested, and RSI (relative strength) is
disintegrating.It's a dangerous situation.
19.I've
predicted that US stocks will likely make a marginal new high, drift sideways
into the nation's election, and then implode in an inflation-oriented
fireball to the 2009 lows, and break them.From a fundamental standpoint, a
decision by the US government to stiff its bond market creditors would be the
catalyst to make my scenario happen, in textbook fashion.
20.In my
professional opinion, there will be no US government default on its
debt.Instead, whoever gets elected will order the Fed to print trillions of
dollars of new fiat paper money, and pay the T-bond creditors with it.At the
same time, the US Treasury is likely to launch a program of gold revaluation
that is more aggressive than the current buy programs in China and Russia.
21.I
realize that gold stocks are the darling of the Western gold community, and
yesterday's price action may have been a bit unnerving for many
investors.Please click
here now. Double-click to enlarge this two hour bars GDX chart.After a
multi-month rally, GDX has built a small head and shoulders top pattern.
22.Nervous
investors can "stay in the game" by moving some capital from
gold stocks to gold, but the overall gold market is very well supported.
23.To
understand just how well supported it is, please click
here now. That's a snapshot of the SPDR fund (GLD-NYSE) tonnage.Despite
yesterday's gold price swoon, value-oriented investors increased their
holdings.The total tonnage just hit another multi-year high!
24.Gold
stock investors should be eager buyers of GDX and its component stocks in the
$21.50 area, and aggressive traders should be buyers right now.Email me at stewart@gracelandupdates.comif
you want the stoploss numbers for that trade.I don't use stoplosses myself,
but I am a light buyer here, and a bigger buyer at $21.50.I invite the entire
Western gold community to throw a bit of caution to the wind.They can place
some fresh buy orders for their favourite gold stocks now, in what is still a
value buyer's price action area!
Stewart
Thomson
Graceland
Updates
www.gracelandupdates.com
www.gracelandjuniors.com
www.gutrader.com
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