1.A number of Western central bankers
are issuing strong statements now, highlighting their concerns about actions
just taken by the Bank of Japan (BOJ).
2.The BOJ doubled their inflation target, to 2%, and
announced they would begin open-ended QE in 2014.Of even greater importance,
they announced the bank would begin a new era of coordinating policy with
the Japanese government.
3.Jens Weidmann, head of the German central bank, sounds
particularly vocal, in condemning that cooperation.He
believes the BOJ is risking a global fiat currency war, which is great
news for gold investors!
4.Some fund managers
expressed disappointment that the BOJ didnt announce an immediate
expansion of QE.
see that as an issue, because BOJ chief Masaaki Shirakawas term ends in April.There are strong rumours that Japans prime minister, Shinzo Abe, wants to replace Shirakawa
with a super-dove.
6.If a super-dove assumes command of
the BOJ in April, he may announce an earlier state date to QE to infinity. I expect he will announce stunning yen-negative
and gold-positive monetary policy, soon after his appointment is finalized.
timeframe is becoming a key one for gold investors. It could mark the official start of a worldwide fiat currency war.
here now.Queen gold has arrived at significant minor trend HSR
(horizontal support & resistance) in the $1700 area.
9.The 14,7,7 Stochastics series I use on the daily chart is a little
a buyer at $1678 and $1665, and a seller at $1700, $1707, and $1725.
10.A potential h&s bottom
is in play now.A sharp sell-off soon could be just
what the chart doctor ordered, to complete the right shoulder.
inflation replaces deflation as the main financial theme, bond prices should
fall hard, while gold soars.Unfortunately, until that inflation theme comes
into play, gold will likely move higher when bond prices move higher, and
lower when bonds fall.
here now. You are looking at a short term chart of the US T-bond.A small top pattern has formed.Gold
is tracking the bond.While the bond could slip a
little here, that would simply strengthen the technical position of gold, by
helping create the right shoulder.
think a huge rally in bonds is coming soon, and it will be the fuel that gold
needs, to challenge the strong HSR zone at $1800, and burst through it.
catalyst is likely to be a collapse in the stock market, or a horrible jobs
report. The public is surging into the market now, eager to get all the free
money that supposedly awaits them there, at much higher prices.Unfortunately,
think their stock market expedition is going end very well.
technicians have highlighted topping action on the weekly bond chart, and I
agree that its
there.The market is a fight, and there are usually
powerful players on both sides of the trade.
view the weekly bond chart, please click
here now.There is a h&s top pattern in play, and bonds have melted down,
into HSR in the 142-143 area.
black HSR line Ive
highlighted at 136.44.If bonds were to decline further, I think the decline
would stop there, and do so in the key April timeframe.
the 14,3,3 series of Stochastics on weekly currency
charts, to identify the start of bullish intermediate trend moves.This indicator tells me that bonds and gold are
unlikely to decline much further from here.I dont
think bonds or gold are going to decline much further, from here.I use the 14,3,3 series of Stochastics
on weekly currency charts, to identify the start of bullish intermediate
view both bonds and gold as de facto currencies.Currency
trends tend to be longer than commodity or stock market trends.
result, trend channels and oscillator crossovers tend to be more reliable,
when they occur in these huge currency markets.
here now.Thats the same weekly chart
of the bond, and all the crossover buy signals of the key 14,3,3 Stochastics oscillator are highlighted.
only false signals occurred at the stock market lows of 2009, and a huge buy
signal is in play, right now!
here now.Thats the same weekly chart
for gold.Gold is the ultimate currency, with the
longest trends, so there are much fewer false signals generated by oscillator
see that after every buy signal generated by the 14,3,3 weekly chart Stochastics indicator, gold staged an enormous rally, and
one such buy signal is in play right now.There may be a little backing and
filling here, but the bottom line is that gold appears to be preparing to head and shoulder its way through the $1800 Maginot line in the sand!
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