This week I don't bring any charts. First, I am being lazy. Second its the last week of the year, and I suspect charting this next week is pretty much useless.
So lets look forward shall we?
If gold etf GLD fails to break below 150, there is a very good chance that this is a near term bottom. Seeing that Oil has not collapsed is not encouraging.
Hedging into gold is not a bad idea here, as 2012 may bring unintended consequences from this money printing party started in 2009.
The worst case for this economy isn't a market drawdown back to SP500 at 800 or so.
The worst case is a rising costs in commodities.
This is the last thing that should happen right now. China's economy has popped. So has Australia.
And its no secret that Europe hasn't had a good time of it as of late.
Further, the public news media hints at a new recession in the USA.
All of this combined spells falling commodity prices as the major countries contract.
Therefore if the USD starts to fall, and/or commodity prices fail to lower, we could be starting to see some hangover from free money.
Gary of the Smart money tracker is calling for gold to go much higher if this is the case. I encourage readers to pay for his services to read his thoughts.
I am not so sure. If Ron Paul actually gets some traction as I previously posted, we may have some USD optimism.
I think the moment Ron Paul is being sidelined in the nomination, we'll have out answer.
Gold up, USD having a hard time keeping its level, and markets mixed or down.
All we need is Peak Oil, USD issues to drive oil higher and that should really put a strangle hold on the USA.
If we d start to see Gold firm up, this will likely be the last reasonable entrypoint, gold thereafter will look crazy to buy at levels at that time.
This is why i encourage everyone to buy some gold (GLD).
Oh, and this week, my best guess is up. Why? Who could possibly be left to sell going into this not so good outlook for christmas.
if there isn't sellers, by definition, there are more buyers than sellers.
OK...I Lied...here is a chart EVERYONE should pay attention to. I'll likely reprint this again in another post.
Food for thought about commodities.
|From WebSufinMurfs FinancialBlog2|