Gold
September 16th, 2012Warning: This is not a recommendation to buy, sell or hold any financial instrument.
I haven’t posted a gold chart in a long time. Gold has been painfully rangebound for months.
It has been very strong over the last few weekly candles and is now nearing a couple of overhead resistance levels. You can see how that sloppy double top worked for shorts back in March, but it’s knocking on that $1790 to $1802 door again, which probably means that it’s going to try to close the bigger gap. That would bring it back up to the all time high at $1920.
Spot Gold, Weekly Interval
My guess is that longs are in for a temporary shakeout around $1800, but that it will retest $1920 in relatively short order (weeks). If that happens, it will probably be the most watched double top situation in a generation. I don’t know what the plan is to prevent it from building a base over $1920, but I’d be ready for a pretty spectacular show.
In the event of a breakout above $1800, I definitely wouldn’t chase it long immediately. It will likely pullback and build a base before going higher.
In summary, for long swingers: Close it out, pare it down, hedge it into $1800. Initiate new longs on pullbacks above $1800. Then the same again—close it out, pare it down, hedge it into $1920.
As usual, permalongs yawn and wait for Bernanke’s next confetti cannon barrage.
Buy it now. Hold it physical. Hide it in your body cavities if you have to. Bernanke has just made it “legal” to not pay interest on dollar savings until 2015! And has pronounced its going to stimulate the economy to buy billions per month ad infinutum on mortage bonds.
Run to the hills folks. He is desbasing the dollar and who benefits? THE BANKSTERS. Stimulating the economy by buying up the bad mortgage bonds that the banksters no longer want to own. Yeah. That’s NOT going to help a human being not in the Rockefeller, Rothschild clan. Yawn. Except I think if any humans have pitchforks left we should be finding someone in the Federal Reserve to poke in the eye with and chase out of the world.
Sorry this is not a game. This latest FED decision is RUIN. Will RESULT in MASSIVE INFLATION. DOUBLE MASSIVE.
Feeling any pain at the grocery store lately? GET READY for WEINMAR REPUBLIC 2- wheelbars of cash to buy a loaf of bread.
Wife’s grandmother experienced the wheelbarrow full of worthless money ordeal as she lived in Germany at that time. The problem with leaving a wheelbarrow full of money outside the bakery while buying bread was that people would dump the money on the sidewalk and steal the wheelbarrow.
Bernanke and his owners couldn’t care less about their worthless currency. They know it’s worthless. They want your wheelbarrow, your house, car, and everything you own to reimburse them for you owing them money. They want everything if value: businesses, buildings, real estate, parks, natural resources, banking, credit unions, water systems, etc, and ultimately, the souls of men.