Tuesday, February 21, 2017

Another View Of Gold

This rarely used index shows the price of gold with the effects of the US dollar removed.

Note how the moving averages have converged and are pointing up as the index has broken through the trendline.

The MACD is nearing zero and has a bullish cross up.

Note that this is a weekly chart and even with a fairly good sized drop in the gold price the chart remains strongly bullish.

Given the fact that gold is the thermometer measuring the temperature of the financial system, we believe the system has a high fever and may soon go into convulsions as the gold price breaks higher.

Monday, February 20, 2017

Gold's Direction - Chop Chop Chop

Gold appears to be in some type of consolidation pattern with cloud support underneath in the $1230 range.

The gold miners, as shown by the ETF GDX, also are moving sideways.

While a pullback in the stocks is quite possible soon, note the moving averages on the rainbow chart.

They are tightly compressed, suggesting strong support in the 23.5 to 24 area.

Furthermore, sentiment toward the stocks remains rather neutral if the commercial net short number is any measure.  It currently is under 128,000, which is only slightly higher than it was in December at the lows.

Therefore, we expect that despite headline driven volatility, and Fed reserve members jawboning about interest rate increases, that both the metal and minors have limited downside at this time.

This is a difficult market in the sense that it is choppy, and requires us to either stay on the sidelines, or hold with strong hands.

Monday, February 13, 2017

More Evidence Of Magnetic Pole Reversal?

More than 600 whales beach themselves in New Zealand

Whale lovers in New Zealand finally got some good news on Sunday after more than 200 stranded whales managed to refloat themselves overnight and swim away, while volunteers managed to save another 17 whales at high tide.

More than 650 pilot whales had beached themselves along Farewell Spit at the tip of the South Island in two separate mass strandings over recent days. About 350 whales have died, including 20 that were euthanized. Another 100 have been refloated by volunteers and more than 200 have swum away unassisted.

Hundreds of volunteers from farmers to tourists have spent days at the beach dousing the whales with buckets of water to keep them cool and trying to refloat them.

My view:

Some species of animals can detect magnetic fields and use this ability to navigate.
Is is possible that the inconsistent magnetic fields resulting from the  pole reversal process are causing this phenomenon?