S&P 500 And Gold Bulls, Get Ready To Meet The Bears

For now, though, arm yourself with patience, and don‘t let any gloomy forecasts not matching your real-world experience of what‘s truly going on in this Brave New World, drive you to abandon your prior decision. Have the facts, the rationale changed? Constantly evaluate these, honestly and truthfully without getting scared. No, the answer is that the drivers are still in place, and will be gaining an upper hand increasingly more over time.

I see gold as breaking higher from this lengthy consolidation in spring, and as I‘ve explained in Monday‘s article, miners are set to outperform the metal early in this move when it comes, because they‘ve been beaten down quite sufficiently already.

Look also at the gold to silver ratio. Spikes in favor of gold are what I would look for in the next monetary crisis or liquidity crunch. Currently, none is on the horizon.


Time has come for another daily downswing in stocks, and it remains to be seen whether it entices the buyers to act. Technology, communications, and consumer staples were among the best performing sectors yesterday, which doesn‘t paint a picture of broad short-term strength. Repeating the final sentence of yesterday‘s summary, the nearest days may (see today‘s session for proof) bring another push lower that won‘t however jeopardize the bull market in the least.

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