If gold can close over 336, looks like one big party.
securitytrader.com
the-privateer.com
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My favorite nut case on gold.
home.c2i.net
Weekend Report (February 5th 2000): I have received several mails about Gold to day. Recently I did stop
commenting on the metal, because the cycle was dubious at times, which I attribute to the fact that the metal have
not really functioned as a real market for years, also the price history only extended to 1968. Still it does respond to
the cycle and the fact that we have a lunar eclipse (not included in the cycle) to day, is certainly an important point.
Studies shows that precious metals often take off at such a point in time, don't ask me why, its for anyone to plot
these events on a chart and see for themselves. In 1987 silver doubled in two months and it started just like what
happened to gold yesterday. I have posted a chart for gold, which shows strength towards next month, but then a
sharp decline. I can not guaranty what will happen, at times this chart have been dubious. The gold surge could very
well be significant long term, we can get a pullback towards the spring, but can assume that gold made a long term
low last year, and that the current support line will hold. If more short covering next week, anything can happen. The
fact that this started with the Bond scare, and that stocks are heading lower - according to predictions herein - could
mean that we are at a very important inflexion point in the financial history of the world. The psychology is
undergoing dramatic changes, which all of my studies shows, see The WCA Grand Cycle. Its my belief that these
external events - news, bond buy backs, less forward sales of gold, inverted yield curve, interest rates and other
fundamentals - means nothing, the inner mentality picks on them, because monumental changes take place in the
subconscious or the collective mind of investors and the public at large. The inner perception is forced upon the
external. See US Treasury Bonds, WCA Trends, which shows huge (mental) swings at this time. The fact that
NASDAQ came up to the eclipse (it partly coincided with the cycle) and gold surge should indicate an important
change as a new trading week starts. There will be a lot of cross currents, the public owning overvalued issues, huge
margin debt, inverted yield curve - signifies mental changes or a saturation point. I bet that a lot of hedge funds,
investment bankers are planning damage control this weekend. What ever they do, it will create more imbalances,
and this time around it might be totally out of control, Greenspan runs out of tricks, simply because no one
understands the complexity of these strategies, the leverage is extreme and one thing leads to another, a change
reaction - a melt financial down. I am not trying to be alarmist, but any sensible person knows that we are in the
middle of a speculative bubble beyond comprehension. Will it burst next week? Again I do not know, but the bond
scare, the gold surge and the behavior of NASDAQ tells me that something is ready to explode. If I gave advise,
which I do not, one should be short the common stock, especially technology and long gold mining stocks, regardless
of a possible pullback later this spring - thats normal. As of The Dow Prediction, see Dow Jones WCA, Closer View ,
it looks great, and the NASDAQ thing seems to be a huge bull trap, that will be discussed by the learned in years to
come, no they think it is the new paradigm in progress.The complacency is nothing less then amazing among the
bulls. The "safest investment in the world -" US government debt is to be taken of the table, may be that's why the
only real safe investment (historical speaking) is surging. Gold could again be fulfilling its purpose - a storage of
wealth. When the stock markets are collapsing, are they going to buy corporate bonds? Whose debt or equity is
going to be safe, it will the evaporation of wealth!!! The week that past and next week can be the real beginning of a
corrective phase back to sanity, and it is my contention that it will take decades to sort it all out. One thing is the
obvious imbalances in the financial system of the world, but this is only to obscure the imbalances of governments
own skeletons. When the phony - money and debt are finally exposed, things can get really ugly. Finally the Long
Bond will not disappear and the debt will never be paid, it will be refinanced and eventually inflated out of existence.
Big debtors never pay and if the US government should stop running up huge debts and trade deficits, it would be
like taking the world off "heroin," soon they will issue bonds like nobodies business, when they understand what
they have set off this last week. |
