Marc Faber, often quoted by doom and gloom folks and those looking for guidance in the precious metals space, suggested today that the US Markets could just be at the start of a significant correction and that gold still has further to correct. (It should be noted that personally I’ve always respected Faber for not wavering on his opinions despite the constant mocking he receives from the buffoons over on CNBC .. his opinions unlike some others, are ones that I personally respect)
In noting that he felt the trend looked disturbing he correctly pointed out that "The technical underpinnings of the market have been a disaster in the last couple of weeks…The number of new highs have declined, the volume has been poor, insider sales just hit a record."
He commented on the head and shoulders topping pattern that is visible in the indexes and while he also noted that he doesn’t bet his life on technical analysis, he does respect one of the most foretelling patterns in charting – the head and shoulders top (usually viewed as he stated, as a “negative development”)
As for Gold, Faber feels as though the correction that started last fall is not yet over. His view is that bullion could fall further and he stated that he felt “we are in a correction period and again like in equities, it's a correction that is somewhat more serious." You can read the full CNBC interview with Faber HERE.
