Since the “Re-Flation” theme is the hot topic of the day, I wanted to update viewers of the long-term Fibonacci targets, based up the price action of each metal over the past 30 years. Keep in mind, even though Gold is reaching all-time highs, Silver hasn’t even REACHED THE 50% level of the prices it hit in the early 80’s!!!
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Below is an earlier version of the chart above, suggesting that if Gold could get past its 1.618% level, it would get a NEW SET OF LEGS!!! (see post here)
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Another example of why we want to BUY BREAKOUTS!
Bob_in_CA – agreed. looking at a one year candle chart of both SPY and JNK with Bollinger Bands says one thing to me – proceed with extreme caution. With yesterday’s action, the candle blew above the upper band suggesting an extremely overbought and relatively expensive condition. How long can this last without some sort of 5-10% correction?
cK
Interesting that the Jan-Apr. period of this year in the S&P 500 is almost identical to the Aug-Nov. period we are in right now.
seriously, how could anyone call a top now? The USD is going to continue to slide further down the worm hole of oblivion, and if it doesn’t Darth Ben Bernanke will use the force to make it fall/equities rise. We all waited for this meeting to make a decision, and the market has voted. Long and strong this market till it hurts.
I found the gap up and euphoric mood across many markets today a little concerning. Could be an intermediate term top and not the best buying point. Cloud stocks (which have been market leaders) reversed to the down side.
the only thing that could have stopped this commodity run is if the USD crashes up!!
GDX has broken to new highs. It looks like breakout. IAG looks best technically. I wouldn’t be surprised to see it hit $30 by christmas.
Current portfolio is a good idea…was going to establish that in the new site for subscribers. Will consider it for the blog.
I was making a general big picture snapshot on the metals for perspective. As a viewer I suspect you have seen that Silver is by far my favorite metal position since it has such a game of catch up to play.
KY, the “current portfolio” is a great idea
Same question as Nikesh.
These types of posts confuse me for 2 reasons:
1. You strongly imply buying gold since it broke 161.8% level, but you don’t explicitly say buy. Per your previous posts, this means don’t buy yet. Correct?
2. i can’t remember if this blog has positions in gold or silver currently. Would you consider keeping a “Current portfolio” section in your blog with positions, stops, purchase price, etc.
Chris,
Are you suggesting we get back in gold and silver? I thought we were out of these positions and waiting to see what the dollar does…
Thank you for all your insights – your blog is a must read for me everyday…