Gold, The Big Picture

The bottom line for gold is: Retrace, lower

No-one in the inflation camp wants to hear that … it’s uncomfortable to face the potential of being so wrong.

Albeit wrong in the short term but probably right later … after it’s too late. More on that farther down.

Just like the lazy (and complicit, we might add) financial journalist publishing the standard (speck blaming) propaganda for the day, so too are the hyper-inflationists, jumping on the most popular bandwagon in town.

Not even considering the potential for a retrace; admittedly, which could be short and sharp but significant nonetheless.

This site has presented several times, we’re in a situation similar to that of Genesis 41. It’s the corn and grain first … then gold and silver.

Just to back that up a bit before getting to the charts, we have the following:

Crop failures world-wide

Systematic destruction of the food supply chain

Systematic elimination of farms and viable (for millennia) ranching practices.

Solar minima activity (decreased sun-spots) causing erratic weather patterns, shifting growing zones; even as far as sub Sahara, Sudan.

Those so focused on stacking metals will likely be using that stack to pry much needed food, food staples, seeds and fertilizer out of the hands of those not willing to sell … at any price.

Why are the oligarchs not worried about the ‘little guy’ stacking metals?

Because there’re going to make it irrelevant … at least for just long enough to completely bankrupt, starve or ‘inject’ the middle class.

Moving on to the charts:

The title header said ‘big picture’. Here we are with monthly gold charts going back to the 1950s, time-frame.

It’s been a long … long bull market. It appears to have made a top at ~1,972 and is retracing … if only just a bit.

The second chart is the one that gives us pause. Consider the potential for a more substantial pull-back.

Markets like to retrace and test. It’s what they do.

That second chart is scary. It’s plain, the 760 – 780 area is a long time (monthly) support level that goes all the way back to 1980.

Absolutely no-one expects, or is planning for gold to get back to $800/oz, or lower.

Think of the irony. The ‘stackers’ (and maybe the rest of us), having to exchange actual money, gold and silver, for worthless fiat just so they/we can buy food to stay alive.

After the middle class stackers have exhausted their metals hoard, that’s when gold and silver will launch into the next bull phase.

It has been done this way (keeping the peasants under control), literally for millennia. The method works … why change?

Summary:

The intent here, is to at least recognize the possibility for the above scenario. It’s clear and becoming more clear every day, food is the weapon of choice.

The objective is to have enough food ahead of time; be in position to take advantage of once-in-a-lifetime metals prices should that opportunity be presented.

Stay Tuned

Charts by Macrotrends

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

Dow Forecast: 31,300

The Dow can either reverse right here or breakout higher from its wedge.

Since the trend is already up, a breakout to the upside is more likely.  Such a move brings in a forecast to around 31,300.

The daily chart below has the last part of the wedge expanded and posted at the bottom of the chart.

Important to note is the location of the Gold (GLD) bull trap. 

Recall, the firm went heavily short (via JDST) on that Friday and had to wait over the weekend to find out if the analysis was correct.

This excerpt (emphasis added) is from the November 7th, update.  It was a Saturday; we’re already short and waiting.

“No doubt, there are a lot of well respected traders, analysts, YouTuber’s that are on the bullish side of the market.  Here are just some examples, herehere, and here.

So, at this juncture, this firm is taking the opposite side of the trade with its re-established position in JDST.”

The following Monday in the early morning hours, gold prices collapsed.  The bulls were trapped.

As the market opened with gold down hard, the Dow and S&P both spiked up in what’s now a terminal wedge.

‘Terminal’, because this type of price action typically comes at the end of a sustained move … up or down.

At this juncture, the firm is positioned short gold (via DUST) with a tight stop (not advice, not a recommendation).

The stops (two trading accounts short) are not mental, out of the market but are actual open GTC stop orders. 

That way if there’s an internet upset or power grid problem, the in-the-market stops will provide some amount of protection.

All of the above may be an excellent analysis of current conditions. 

However, behind the scenes, the macro or the real agenda, is deadly serious.

The ‘plan’ all along is to destroy (and subjugate) the middle class.  That’s been in the works for decades. Neo Feudalism.

ShadowStats reports here, real unemployment spiked to 35% early in the year and has come down to just over 25% now.

That level is still above 1930s, depression-era numbers and we’re just at the first wave of middle class destruction.

Throw in more economic turmoil and a stock market crash.  Then we have ‘fait accompli’.  Only a tiny remnant could be left unscathed.  

Note the picture at the top:  The haves and have-nots.

From The Money GPS: ‘The chasm in-between the haves and the have-nots, grows every single day’

Self employment is the key.  It’s not a guarantee but it does offer flexibility and most importantly it may offer some extra time.

The above statements may seem harsh (possibly outlandish) to those not yet awake.

To help in that area, two links are provided here and here.  See for yourself whether or not we’re at a critical juncture.

Based on yesterday’s analysis, the expectation is for gold and the miners (GDX) to continue lower.

If they do and the markets (Dow, S&P) continue higher, it’s just one more indication the time for reversal is near.

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.