GOLD and SILVER – Is the Bull Exhausted Yet?

Tags

banking crisis, banking crisis banks bear market bull central deflation depression economic trends economy financial futures gold inflation crash Markets precious metals price protection recession safety silver plati, banks, bear, bull, central banks, crash, Currencies, currency, deflation, depression, derivatives, economic trends, economy, Euro, Eurozone, financial futures, FXE, GLD, gold, gold to silver ratio, hyper-inflation, inflation, market, Markets, precious metals, price protection, printing press, QE2, quantitive easing, recession, safety, silver, SLV, SPY, UUP

Maybe…. Depending on who you are talking to. Today’s rally took me a little bit by surprise, thanks to Japan. The market totally shrugged off Moody’s potential downgrade of Irish Banks and Ireland.

The recently released report of the causes of the “Flash Crash”  showed that derivatives actually was one of the major causes of the crash. Well guess what? Right before the collapse of Lehman, and the ensuing crash and crisis; banks were holding all time record levels of derivatives. Currently once again, banks are holding all time record high levels of derivatives!

So today’s rally can be totally attributed to Japan’s central bank. The Japanese Central Bank while slashing interest rates to basically 0%, also announced that they would be buying Japanese assets (Bonds, Reits, Mortgages, Equities), thereby fueling speculation that the Fed would do the same thru QE2 here in the United States.

However, I think it’s about time for a correction in the GLD, SLV, FXE, SPY, UUP.
Looking at the charts this has all of the appearance of an exhaustion gap. Not that I don’t think that we have a real shot a $1500 Spot Gold by the end of this year.

So even though I was stopped out of my GLD puts this morning I am seriously thinking about jumping back in and buying more GLD and SLV puts. I will let you know on stock talks  (Seeking Alpha), when I do.

That being said, I don’t think the correction for GLD and SLV will be more than 5-7% before resuming their march to $1500 (Gold) and $25 (Silver). Another note: I expect Silver to perform even better than Gold. The gold/silver ratio is approximately 60/1, if we see a return to what used to be the norm of 30/1 gold/silver ratio; then Silver could potentially run as high as $35-$50/oz.

Finally, as they do another quantitative easing (QE2) here in the US (currently not official QE), this continues to put pressure on Europe and Japan to devalue their currencies  and keep the printing presses running. Long term this is going to create a very hyper inflationary climate long term. So being the Gold and Precious Metals Perma Bull that I am, I think that you should be buying and stockpiling (bullion, rounds,  coins; as much as you can get; to lock in the value of your money now. Events are truly starting to line up and set the stage for a potential worldwide collapse and depression.

===================================================

Claim a gram of FREE GOLD today, plus a special 18-page PDF report;

Exposed! Five Myths of the Gold Market and find out:

• · Who’s been driving this record bull-run in gold?
• · What Happens When Inflation Kicks In?
• · Why most investors are WRONG about gold…
• · When and How to buy gold — at low cost with no hassle!

Get this in-depth report now, plus a gram of free gold, at BullionVault

====================================================

– Trend Analysis Revealed –

Substantial moves like the ones that we have recently witnessed present opportunities to succeed or fail in the markets.

Traders who stayed on the correct side of the trend were rewarded substantially.

Serious questions effecting your portfolio still remain:

– Have we seen the Indexes bottom or top?
– Is a reversal in the near future?
– Is it too late to go short?

Stay on the correct side of the market. Let our Trade Triangle technology work for you. It’s free, It’s informative, It’s on the money.

Free Instant Analysis delivered to your email inbox. Analyze ANY Stock, Futures, or Forex symbol.

Click Here For Your Free Analysis

Nothing in today’s post should be considered as an offer to buy or sell any securities or other investments; it is presented for informational purposes only. As a good investor, consult your Investment Advisor/s, Do Your Due Diligence, Read All Prospectus/s and related information carefully before you make any investing decisions and/or investments. –  jschulmansr

Advertisement

Response to a Trader – US Dollar Where is it going?

Tags

ANV, Austrian school, AUY, Bailout News, banking crisis, banks, bear market, Bernanke, Bollinger Bands Saudi Arabia, bonds, Brian Tang, bull market, CDE, CEF, central banks, China, cobalt, Comex, commodities, Copper, crash, Currencies, currency, Currency and Currencies, deflation, Dennis Gartman, depression, DGP, dollar denominated, dollar denominated investments, Doug Casey, economic, economic trends, economy, EGO, Federal Deficit, financial, Forex, FRG, futures, futures markets, gata, GDX, geothermal, GG, GLD, gold, Gold Bullion, Gold Investments, gold miners, Gold Price Manipulation, Green Energy, GTU, hard assets, HL, Hyper-Inflaion, hyper-inflation, IAU, India, inflation, Interest Rates, investments, Jeffrey Nichols, Jim Rogers, John Embry, Jschulmansr, Keith Fitz-Gerald, majors, Marc Faber, market crash, Markets, Michael Zielinski, mid-tier, mining companies, monetization, Moving Averages, NAK, NGC, NXG, PAL, palladium, Peter Grandich, Peter Schiff, physical gold, platinum, platinum miners, power, precious metals, price, price manipulation, prices, producers, production, protection, recession, risk, run on banks, safety, Sean Rakhimov, silver, silver miners, SLW, small caps, sovereign, spot, spot price, stagflation, SWC, Technical Analysis, TIPS, U.S., U.S. Dollar, US Dollar Direction, volatility, warrants, XAU

On Seeking Alpha:

I received this question from another trader who contributes on Seeking Alpha

DeFactoTrader

Question:

• Hi, you seem to be bullish on dollar (uup) and bearish on gld at least for the short-mid term … where do you see DXY going? it’s at 82 right now, or uup for that matter?

jschulmansr

My Answer:

// I think US Dollar is going to at least test 85, if it can break that then real potential for 90. UUP short tern $24.25 then $25 and $26 longer term. Currently nobody believes inflation is a threat so the Dollar will rise. As long as the dollar is rising, Bernanke doesn’t have to do anything except maintain. I do feel that in a few months the fundamental will change, when inflation is perceived as a threat, and it will be since we have at least almost quadrupled the money supply (US Dollars). When inflation does start to roar then we will see a rising US Dollar and rising Gold Prices along with rising interest rates. That is also when Gold will go to $2000 to $2500 on next leg of rally. Long term even higher. This of course is based on no unforeseen news events. The other shoe so to speak is the sovereign debt issue. If Europe can fix the situation then the dollar will take a hit. Finally if the credit rating of the US is downgraded then kiss the dollar goodbye and watch Gold really explode. I think for stocks the rally will stall around Dow 11,500 and then have a really nasty retracement. This will once again really shake investor confidence, but for those prepared it will be an opportunity of a lifetime to make money. Thanks for asking!-jschulmansr

Jeffrey S Schulman Sr aka jschulmansr

twitter:    http://twitter.com/jschulmansr

twitter:    http://twitter.com/TweetsTheCash

twitter:    http://twitter.com/DareSomething

LinkedIn:  http://linkedin.com/in/jschulmansr

FaceBook: http://facebook.com/jschulmansr

Here is where I buy my Bullion, get one free gram of Gold just for opening an account! Catch the New Bull! – Buy Gold Online – Get 1 gram free just for opening account- just click here and then again on the Gold Bar!, no minimums – Buy Safely, quickly, and at low prices, guaranteed! – Bullion Vault.com

==============================================

Subject: Two trending markets revisited and analyzed for you

Here is a video analysis of the S&P and Gold markets. The technical analysis was right on at the time, but those markets have changed quite a bit in the last few days. The S&P had a huge rally and Gold is climbing at a steady rate, so what’s the new analysis? Glad you asked!

Below are two free videos, one on Gold and one on the S&P, that gives us an in depth technical look into these markets. Again the videos are free and very informative. Just Click on the Links Below…

S&P Video Analysis:                                                    Gold Projections:

Also- Here’s your chance to analyze that stock you have been thinking about adding to your portfolio. Just enter the ticker of any company, name of a commodity, or forex pair and get your complimentary technical analysis. It cost you nothing and no payment info will ever be requested.

Click Here To Enter Your Symbol/s

– Trend Analysis Revealed –

Substantial moves like the ones that we have recently witnessed present opportunities to succeed or fail in the markets. Traders who stayed on the correct side of the trend were rewarded substantially.

Serious questions effecting your portfolio still remain:

– Have we seen the Indexes bottom or top?
– Is a reversal in the near future?
– Is it too late to go short?

Stay on the correct side of the market. Let our Trade Triangle technology work for you. It’s free, It’s informative, It’s on the money.

Free Instant Analysis delivered to your email inbox. Analyze ANY Stock, Futures, or Forex symbol.

Click Here For Your Free Analysis

Have A Great Afternoon & Good Investing! – jschulmansr

Nothing in today’s post should be considered as an offer to buy or sell any securities or other investments; it is presented for informational purposes only. As a good investor, consult your Investment Advisor/s, Do Your Due Diligence, Read All Prospectus/s and related information carefully before you make any investing decisions and/or investments. –  jschulmansr