15 January 2012

Charts (15 January 2011)

Posted by Xavier Cromartie at 17:00
I have little to say this week that is different from the last updates (1, 2). Gold reached 1661 and then fell back, but it held support at 1625. This week does not figure to be that eventful, as far as I can tell. Gold might reach up to 1680 or it might fall back a little more, perhaps to 1605. What we are anxiously anticipating is next week. Chinese New Year begins on 23 January. The FOMC is on 25 January. Options expiration is on 26 January. Gold is going to correct most likely. But how low? Probably not as low as 1522. Will the Fed announce more easing? Looking at the euro and dollar COTs, the commercials certainly seem to expect a reversal soon. If so, gold and silver will explode above their downtrend lines and make fantastic gains rather quickly. We are just beginning the most powerful wave up in the gold and silver bull market. Recommendations are USLV and my favorite silver miners (SLW, AG, SVM, GPL).




What is suddenly interesting to me is natural gas. The price is in free-fall. You can play it with BOIL and KOLD.


Disclosure: Long physical gold/silver.

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3 comments:

  1. I share your anxiousness on the market next week. The Chinese New year holiday is from 23 - 25 Jan. However, many of the Chinese investors and Forex traders are on holiday that whole week. The result from the FOMC on 25 Jan is certainly an interesting even to be anxious about.

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  2. The new Fed voters are now 9-1 in favor of more quantitative easing this year, as far as I can tell. It's just a matter of when they decide to go ahead with it. More likely sooner than later.

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  3. I added a silver chart.

    I think that whenever silver breaks above 50 (maybe later this year or in 2013), it will immediately surge to 69 or 81.

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