Tag Archives: gold

Stock Market Likely to Crash From Here

1 Mar

Triple Top?

The S&P 500 and Dow Jones are both once again near all-time highs…for the third time.  The old saying third time’s a charm can work both ways when it comes to the stock market.  Sometimes an index will bust through to new highs, and other times it will fail spectacularly crashing to new lows.

We should all be watching the behavior of the major indexes here, because the possibility of a major triple-top failure is quite high, for reasons outlined below.

If the S&P 500 fails at the triple top and breaks down, from a charting perspective the next thing for it to do is revisit the bottom and then make up its mind as to what it wants to do next.  The implication here is that a major failure of the S&P 500 will open the possibility of it revisiting the 600-800 level, or some 45% to 60% lower from the 1,500 level where it currently churns.

It will take some time to get to that level, typically 3-6 months, unless there’s some sort of financial accident to hasten things along, in which case it could all be over in a month or two.

SP-500-triple-top Continue reading

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Monetary Stimulus Could Lift The Gold Price?

7 Feb
Gold Price
·         Sept. 21, 2011: Federal Reserve launches “Operation Twist.” The central bank swaps $400 billion of short-term bonds for the same dollar amount in longer-dated securities. Deadline for program is slated for June 2012.
 
·         Oct. 2011: Bank of England initiates new round of quantitative easing, creating an additional 85 billion pounds in stimulus.
 
·         Nov. 2011: The Federal Reserve pledges to “leave the door open for further action” and to keep interest rates at record lows “at least through mid-2013.”
 
·         Jan. 2012: Federal Reserve pledges to “keep interest rates near zero until at least late 2014.”
 
·         Feb. 2012: Bank of England adds an additional 50 billion pounds to stimulus program
 
·         June 2012: Federal Reserve extends “Operation Twist” to the end of the year, swapping an additional $267 billion of shorter-term securities for 6-to-30-year Treasury’s.
 
·         July 2012: Bank of England adds an additional 50 billion pounds to stimulus program, bringing the total to 375 billion pounds.
 
·         September 2012: Federal Reserve pulls the trigger on a third round of quantitative easing, QE 3. The new, $40 billion per month bond purchasing program of mortgage-backed securities is open-ended, with no time limit.
Source: elliottwave.com

Stock Market High Complacency, The Bear Will Decimate Your Wealth

26 Jan

By: Zeal_LLC

The US stock markets have been surging in one heck of a January rally.  The combination of the fiscal-cliff tax deal and generally solid Q4 earnings have propelled stocks to their best levels in 5 years.  But these gains have been accompanied by stellar complacency.  Traders are extremely bullish, convincing themselves this rally is only beginning.  But high complacency near major highs really means serious downside risk. Continue reading

Eric Sprott: Why are investors buying 50 times more physical Silver than Gold?

25 Dec

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