Monday January 28 2013
Crude Oil is the master market, particularly as an emotional market.
The main chart is crude oil. Notice the black lines that form a converging triangle.
Now note how the 50,87,125 day MAs and price have all converged. This is typical action before a larger move. We put gold on top. note it is re testing its 50 week MA. Then we re posted basically the patterns for gold and silver we showed in the Weekend Update. Silver is extended further back to capture the $50 high. Run your eye down over all three. What do you see?
Convergence.
Patience is required to make money in markets. Gold silver oil have all sold off as investors zoom from bonds to stocks ignoring these sectors. This is happening even as government spending around the world expands in a manner that can never be re paid. It is expanding with borrowed money.
Gold
Silver
GDXJ
The degree of decline which is to say sheer panic seems to match that of last May. This indeed looks like the public after worrying all weekend, saying they are glad to be out of this mess, and taking a loss.
Comments