Key Test Today! Stocks are Flirting with disaster, 8268 (DJIA) is the neckline of a head and shoulders. If (DJIA) closes beneath that, then we are definitely starting the next leg back down. Nothing to hold the freefall except some support at 8000 (DJIA) and then secondary confirmation of a new down move if breaks the next support at (DJIA) 7840, 7800, and then 7550. Take your profits now before you ride the DJIA right back down again.
Gold and Silver however are poised to take off! If Gold successfully closes above $980 then next stop – new ALL time highs. As I mentioned yesterday hre is what I see for Gold. I predict that Gold will break $978- $980 and push up to approximately $1075 to $1090 on the first leg. We will see a normal retracement down to $950- $975 and then blast off to $1150 -$1250. I personally think with the hyper-inflation shoe about to drop, coupled with the remaining half of the derivative crunch. We can easily see $2250 to $2500 Gold by the end of the year. Keep accumulating Gold and Precious metals especially the junior and mid-tier producers. There are still companies out there selling at or below book value.
In case you missed it yesterday here is the stock tip that I was offered along with an advisory service costing $297 year. This is the stock in their “special report”. just came across a sweet little play in the cobalt industry, supplies are dwindling fast and there will be a shortage just at the time this company comes on line with production. This company will have the only high grade cobalt production in the United States and will be able to supply approximately 12-14% of Cobalt needs for the USA. If you check out what Cobalt is used for you will understand why this stock has the potential to be a Grand Slam. Production is anticipated to be approximately 1525 tons per year with a 10yr life based on current reserves. I just received an offer to buy this tip along with an advisory service for $297 yr. I’ll give it to you for free. That’s just the kind of guy I am, LOL! The name of the company is Formation Capital Corp. Trading symbol (FCACF). I just picked up a bunch @ .35 cents/share, but as always do your due diligence, read the prospectus and company reports. If nothing else put (FCACF) on your watch list / radar. – Good Investing! -jschulmansr
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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
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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
====================================================
Now For some reports…
Jim Sinclair: 9 Immediate Predictions For Gold – Seeking Alpha
By: Peter Cooper of Arabian Money.net
Jim Sinclair is the doyen of gold experts. It is interesting to see a very clear timeframe for the gold price posted on his website yesterday:
- Gold reacts as currency support for the dollar enters mid June to a slow decline (that is the official definition of a strong dollar policy, really).
- End of 2nd week going into the beginning of the 3rd week of June Gold launches towards and this time through the neckline of the reverse head and shoulders formation.
- Gold rises to $1224 where it hesitates.
- The OTC derivative market takes on the dollar as short sellers into dollar support.
- This OTC derivative currency short position builds.
- t is the US dollar where Armstrong will get his WATERFALL.
- The main selling takes place when Israel makes a major miscalculation.
- Hyperinflation is always and will continue to be a currency event.
- Hyperinflation will be a product of the upcoming massive OTC derivative short dollar raid.
“Should I be correct in the gold price action going into late June, it will fit Armstrong’s criterion for a move to $5,000”, adds Mr. Sinclair whose predictions are not always right, and who got similarly carried away last summer.
But there is the old mantra in forecasting that if you repeat something often enough then it will be bound to happen in the end.
And to be fair to Mr. Sinclair, the gold positive scenario stacking up right now does look unstoppable.
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My Note: Sounds pretty darn close to my own predictions- Amazing!
-jschulmansr
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Gold Battle Lines Drawn at $1000 – Again —Seeking Alpha
By: James West of Midas Letter
Here we go again. The forces of legitimate money versus the incumbent purveyors of the candy floss economy squared off at the $1,000 an ounce line over which yet another battle will be fought. Arrayed against either side are formidable new elements and tried and true old ones. As usual, the first volley has been catapulted over the walls of the hucksters by the defenders of the essential timeless truth of gold’s naturally stored value against the counterfeit paper currencies.
The liabilities of the enemy have increased, and the short positions in the COMEX market are sufficiently stacked that the big bank defenders simply cannot allow gold to win decisively. G7 governments are allied against gold to a man, while emerging economic behemoths China and Russia stand in opposition.
In particular, China’s revelations that it has been in a continuous accumulation mode for the last several years and is now the fifth largest sovereign reserve of gold has created an impetus in the gold camp that has been seen lacking in the past. Institutional and sovereign investment entities now perceive a floor in the gold price based on this information, and one must beg the question as to why China would make such a revelation when it threatens to undermine the value of its $2 trillion in U.S. debt holdings.
China has also been careful to avoid buying gold on the international market, for fear, it says, of creating a stampede into the precious metals that would immediately increase the cost of its stated intention to continue accumulating gold towards the backing of the yuan (renmibi) as a global reserve currency.
Yet that is precisely what has happened. Ostensibly, the justification for tipping their hand exists in the fact that they’ve resigned themselves to the fact that selling poison toys and pet foods to Americans in exchange for a currency that loses value like light into a black hole is an acceptable if imperfect transaction. With $50 billion a year in interest payments from the U.S., they can hedge the risk buy using it to buy gold.
With the perceived floor arguably at $850, downside risk is limited in gold far more so than in U.S. treasuries, which, if mainstream media is to be taken as remotely credible, is the current favorite of safe haven investors.
‘Safe Haven’ is about to get painted with same fragrant brush as ‘AAA-rated’ investments.
Goldbugs are salivating at the prospect of vindication, but seasoned veterans of the war know that the governments and central banks arrayed against gold are not fair fighters. Since the largest players in the futures market occupy both sides of the contract, and never take delivery of the physical gold, they can orchestrate a perpetual negative sentiment towards gold by driving the future price downward by simply amping up the short positions, thus making gold appear poised for a sell-off. This has been standard operating procedure for the last decade, and it is interesting to note that ever-bigger short positions are having less influence over shorter durations before the bulls shrug off the flimsy performance and take gold higher.
Critics and observers of this U.S. Dollar image management program point to the fact that such activity, while shoring up demand for U.S. Dollar debt in the short term, effectively undermines the entire global economy, and is among the fundamental causes of financial crises such as the housing collapse and the whole current global financial fiasco.
Proponents of this manipulation, who are increasingly legion in number, correctly predict an inevitable bursting of the damn catalyzed by investment demand overwhelming the short positions, forcing them to buy and cover to limit losses, which will, in itself, stimulate the gold price even further.
With the limited oversight and feeble reporting standards of the CFTC, the ploy is facilitated by complicit (or ignorant) regulators who ensure data is obfuscated and disclosure limited. It has been this collective effort on the part of the Dollar Defenders that continuously defeats gold’s advances, repeatedly castrating the bulls and sending them whimpering to lick their wounds and regroup.
But China is now leading the charge, and the bet is that they’re willing to forgo the lost value of their USD holdings to decisively undermine the global reserve currency once and for all and replace it with the Yuan, a move that would effectively mark the beginning in the shift of the global balance of power from west to east.
The United States, overextended militarily across the Middle East and Asia, with new fronts threatening to open in Iran and Pakistan, is perilously close to an international nervous breakdown. China’s opportunity is to ride to the rescue bearing smiles and steamed pork buns while dividing up what is left of the American industrial asset pool.
Our leadership of the last decade (or more accurately, absence thereof), eager to lubricate the workings of multinational financial interests, have inadvertently played into the patient hands of their biggest creditor by prostituting the national currency shamelessly to the point where every nation in the world can see what used up piece of spent jet trash the old USD has become.
While mainstream media dismisses the idea of the Yuan replacing the dollar as the international monetary standard, those of us who have tuned out at the perception management program on CNN recognize the event as halfway accomplished.
The truly explosive moment for gold will occur when the Chinese, at their discretion, decide to spring the trap, and abandon USD completely in favor of gold, suddenly spiking the price of gold straight north in tandem with the complete collapse of the U.S. dollar.
Don’t pay any attention to the second rate hacks trying to claim credit for predicting the fall…it’s been predicted repeatedly throughout history from Nostradamus to Roubini. Any student of economic history with 20/20 vision could see this coming, and here it is. “I told you so” is a waste of time. Who’s offering a solution?
Whether or not this particular battle at the Great Wall of $1,000 an ounce is the mother of all battles remains to be seen. Desperate times call for desperate measures, and while G7 governments collude to retain power, the unforeseeable is the greatest threat to gold.
That being said, veteran observers are optimistic, to say the least.
According to Bill Murphy, intrepid soldier of gold wars and standard bearer for the Gold Anti-trust Action Committee,
The Gold Cartel is giving it all they have no, as evidenced by the sharply rising gold open interest on the Comex … up some 23,000 contracts on Wednesday and Thursday. They are doing all they can to counter new spec buying.
My hunch is the next time we see $1,000, and that could be very soon, gold ought to take off from there, giving us more upside dynamic daily moves. The reasons to own physical gold are off the charts … HUGE investment demand, shrinking visible central bank supply (unrelated to the cabal), shrinking mine supply, shrinking dollar, concerns over sovereign wealth debt, a horrible US economy, and a US printing press that is going flat out and will have to for some time to come.
In my opinion, all gold has to do is to stay over $1,000 for a few days, and then all kinds of bells and whistles go off.
Bill is not the only one who thinks the breakthrough is at hand. Bob Moriarty of 321gold.com, himself a historically prescient oracle of market crashes agrees and warns that the stock market will be the first casualty of the new financial reality.
If you take a look at the dollar and the long bond, it looks as if they jumped off a cliff. This isn’t gold going up, it’s the dollar and bonds going down. When the market wakes up the stock market is going to take a giant dump. No more fake rally.
Investors by now should be well equipped to read the writing on the wall. Whether gold breaks through $1,000 and holds there, charts new territory at much higher levels, or is beaten back down through the offices of JP Morgan (JPM), HSBC (HBC) and Goldman Sachs (GS), is irrelevant.
Gold producer stocks are up, on average, over 22% this year in the Midas Model Portfolios, while intermediate producers and close-to-production juniors have piled on gains ranging from 20 to 200%, all since January this year.
You won’t hear anybody pointing that fact out on television, and you won’t hear that from your broker, in most cases. But the lesson is clear. Gold bullion is the place to be for wealth preservation, and gold producers and explorers is where risk capital is going to see utterly stupendous gains this year.
If you buy the hype of Wall Street and Washington and wade into the general equities markets, you have nobody to blame but yourself for the heavy losses you will surely sustain.
===================================================
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
====================================================
Gold vs Silver: There Is No Debate — Seeking Alpha
By: Market Sniper of We Just Trade
It is mildly amusing that when the precious metals markets are in confirmed uptrends, the perennial debate of whether it is best to own gold or silver always comes to the fore.
Both gold and silver, historically, have been money (merely utility in exchange). Gold in nature is approximately 15 times as scarce as silver. All the gold mined since the dawn of man, if molded into a cube, is said to fit inside a baseball diamond. Silver would nearly fill the stadium. China, now the world’s largest gold producer, had a silver standard as gold was more plentiful in China than silver, a bias that the west took full advantage of up through the 1870s. Silver imports by the Spanish Empire from their New World holdings were so large that it collapsed the European silver market. England, then on a bi-metalic standard, quickly switched to a pure gold standard. The Spanish Empire never recovered from the experience.
In the United States, the debate raged incessantly as to how the ratio would be “fixed” after the discovery of the Comstock Lode with western mining interests’ best known champion, Senator William Jennings Bryan, being the foremost proponent of a lower ratio. Seems it is an old debate. The good news is, you can own both. If/when the world returns to honest, stable money, you will need both: gold for the larger acquisitions and silver to make change.
While we await such an event, ratio trade the two metals to increase your holdings of precious metals.The ratio fluctuates wildly over time. In the 1970s and 1980s I used 28:1 and 40:1 as points that I would switch. At 40:1, I would be in silver. When the ratio dropped down to 28:1, I would exchange silver holdings for gold. Each time I switched, my stack of precious metals would increase in size even after dealing with the spread.
Find a precious metals dealer who will work with you on that. You maybe able to locate one that will only charge the spread on one of the metals and not both when you switch. Since then, the ratio has moved up. At one point it was even at 100:1. I now use 45:1 and 70:1 as switch points. See your tax accountant as to the benefits of such a program. Think 1031 Tax Deferred Exchange.
For those who do not want to break the rear axle of your automobile moving your silver when it comes time to switch, think about using ETFs that only reflect the price of the two metals. There are a variety of ways to accomplish this, from being in just one or the other to being long one and short the other. IF your objective is to accumulate the actual physical metals, do not use ETFs as a substitute for physical ownership. Rather, take profits from your switching trades and purchase the actual metals themselves. Gold vs. silver? No debate. Accumulate both.
Disclosure: long physical silver and gold
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A new site that is in pre-launch state that will become a virtual world – chat, shop, play, videos, etc. Anyways they are giving free shares (that should become actual company shares) to anyone who signs up and more shares if you refer people.
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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.
Good Investing!– jschulmansr
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As you can see, from mid-1971 to December 1974, gold rose 471%. It
then fell 50%, from December ’74 to August ’76. After that, it began
its next leg up, exploding 750% higher from August ’76 to January
1980. Now, in its current bull market (2001 to March 2008), gold
rose over 300% from $250 to a little over $1,000. And just like in
the mid-70s, it began showing signs of weakness after its first big
rally up to $1,014 in March ’08. At one point, it even fell to $700, a 30% retraction.
Granted, it wasn’t a full 50% retraction like the one that occurred
from 1974-76. But we are experiencing a financial crisis. And gold
is the most common catastrophe insurance.
If we were to go by the historic pattern of the gold market in the
‘70s, gold should experience upwards resistance for 19 months after
its first peak today. Gold’s recent peak was $1,014 in March ’08
(roughly 17 months ago). If this bull market parallels the last one,
then gold should renew its upward momentum in a very serious way
starting in October 2009. And this next leg up should be a major
one (the biggest gains came during the second rally in gold’s bull
market in the ‘70s).
The chart certainly forecasts a major move.
As you can see, gold has formed a long-term inverse head and
shoulders formation (two smaller collapses book-ending a major
collapse). Typically a head and shoulders predicts a massive
collapse. However, when the head and shoulders is inverse, as is
the case for gold today, this typically predicts a MAJOR leg up.
Indeed, any move above the “neckline” of 1,000 would forecast a
MAJOR move up to $1,300 or so. Going by history, this is precisely
the move we should expect: remember based on historical trends
(the gold bull market of the ‘70s) gold should begin its second
and largest leg up in September or October 2009.
Watch the gold chart closely over the next month or so. If gold
makes a move above $980 perhaps add to your current positions.
If it clears $1,000, hold on tight, cause the next leg up in this
secular bull market has begun.
Good Investing!
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My Note: After watching stocks (DJI) this afternoon and the strange
price behavior before the close, I felt I would add this article too!
-jschulmansr
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Anytime stocks explode higher on next to no volume and crap
fundamentals you run the risk of a real collapse. I am officially
going on record now and stating that IF the S&P 500 hits 1,000, we
will see a full-blown Crash like last year.
3) This Latest Market Rally is a Short-Squeeze and Nothing More
To date, the stock market is up 48% since its March lows. This is
truly incredible when you consider the underlying economic picture:
normally when the market rallies 40%+ from a bear market low, the
economy is already nine months into recovery mode. Indeed, assuming
the market is trading based on earnings, the S&P 500 is currently
discounting earnings growth of 40-50% for 2010. The odds of that
happening are about one in one million.
A closer examination of this rally reveals the degree to which
“junk” has triumphed over value. Since July 10th:
Dare Something Worthy Today Too! 
