Gold, Silver, Mining Shares Bottom Evident
The chart below of GLD shows support on the long standing up trend line. GDX has sported a bullish “Morning Star” pattern. Normally, Mercury Retrograde ends an up movement, but in this case has ended a down movement. Expect some upside fireworks to begin tomorrow (Sept 1) and especially on the employment report Friday. The final “C” Wave of the sequence should commence.
The stock market gave us a minor buy signal in the low 2160’s SPX today. It may end up being a one day wonder. Time will tell. The 10 week low is still ahead of us. A 115 TD top is due October 3rd. A big move down looks likely from October into November.
As always, we trade the market not the forecast.
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Brad Gudgeon, editor and author of the BluStar Market Timer, is a market ...
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"The chart below of GLD shows support on the long standing up trend line."
I've spent quite a bit of time doing my due diligence into GLD. Would someone happen to know why there is a clause in the GLD prospectus that states GLD has no right to audit subcustodial gold holdings? I do not see why the GLD managing organizations would give up this right because doing so made a substantial audit loophole. I don't believe I've heard any positive explanation for why this loophole exists. Additionally, the GLD organizations promise that this fund is 100% backed by actual physical gold but yet they staunchly deny retail investors the right to any of their listed physical gold. I've also discovered a number of other issues along the way:
"CNBC's Bob Pisani made a highly publicized visit to GLD's gold vault in a segment called Gold Rush: The Mother Lode. GLD's administration organized this visit to show that GLD's gold actually exists. However, the gold bar held up by Mr. Pisani showed a serial number of ZJ6752 which did not show up on the latest bar list during that time. It was later found that this "GLD" bar actually belonged to ETF Securities."
"Did anyone try calling the GLD hotline at (866) 320 4053 in search of numerical details on GLD's insurance? The prospectus vaguely states "The Custodian maintains insurance with regard to its business on such terms and conditions as it considers appropriate which does not cover the full amount of gold held in custody." When I asked about how much of the gold was insured, the representative proceeded to act as if he didn't know and said they were just the "marketing agent" for GLD. What kind of marketing agent would not know such basic information about a product they are marketing? It seems like they are deliberately hiding information from investors."