Posts filed under “Cycles”
In the beginning of this year, we looked at some of the trading errors commonly made by gold investors during this cycle. At the time, gold had fallen 38 percent from its 2011 peak. Yesterday, spot gold traded at less than $1,242 before closing slightly higher.
Gold is hitting new multiyear lows relative to the Standard & Poor’s 500 Index. J.C. Parets, a technical analyst at Eagle Bay Capital, notes: “This downtrend has been very strong over the past 30 months and is hard to fight.”
he key support level, according to Parets, is $1,180. Spot silver has already broken its major support level of about $19. Parets adds that this break in silver could auger a further decline for gold as well, including the mining companies. If you must be long on a precious metal, Parets suggest you consider palladium as an alternative to gold or silver. Continues here
@TBPInvictus here: On April 17, 2012, North Carolina Congresswoman Virginia Foxx stood before her colleagues in the House of Representatives and said (emphasis mine): Ms. FOXX. Mr. Speaker, the March employment report continues to show us that the Federal Government has not been helping to create jobs in our economy. A Wall Street Journal editorial…Read More
Source: Aleph Blog Here is a fascinating chart from David Merkel at Aleph Blog. The chart shows the sentiment cycle that arises due to performance chasing. That leads to crowded and, ultimately, unsuccessful trades. As David observes: When money is being thrown at a sub-asset class, like subprime RMBS in 2006-7, or manufactured housing…Read More
“Capitulation” is the term used to define a selling climax that often marks the bottom of a bear market. It translates into “surrender” — giving in to the overwhelming need to just make the pain stop. Retail brokers tell tales of individuals bailing out, often saying things like, “Just sell, get me out, please make…Read More
Source: Federal Reserve Bank of Philadelphia Via the Federal Reserve Bank of Philadelphia, by way of Business Insider, I decided to see what we could do if that was an animated GIF instead of static charts. The net result shows the month-to-month change from January 2005 – January 2014 of the Philly Fed’s coincident…Read More