Connected interests (commercial traders) have not only covered their short position but also increased their long positions dramatically since early August. Commercial traders’ longs positions as a percentage of open interest has increases from 29.8% to 35.2% over the past six weeks. This trend and reading, second highest of 2011, set a bullish tone … Continue reading “Headline Fear Hides Gold’s Bullish Money Flows”

Bolivia is the latest central bank to join the gold buying bandwagon. Falling global supply as local demand increases translates into severe shortages if price is not allowed to equilibrate demand. How many times have the US mint suspended coin sales this year? Headline: Bolivia Central Bank to Buy Local Gold Output to Boost Reserves … Continue reading “Central Banks Buying Gold”

I’ve written about we saw yesterday already, but it’s importance demands a repeat. Headline hype, largely fear-inducing, will attempt to convince as many people as possible that this technical setup does not exist. Even slow-and-steady gold has penetrated the upper channel of its linear trend established in 2001. As Jim suggests, the subtle technical signals … Continue reading “Phase 3 Trend Acceleration Has Begun”

Gold leads, gold stocks follow with a dividend kicker. Gold and Gold Stocks Side by Side Comparison When asked about the mining shares specifically Boyd remarked, “I absolutely agree that the equities relative to gold are undervalued, I think that’s clear, that’s just a fact! If you look at where the equities are trading, they … Continue reading “Sean Boyd – Expect $2,200 to $2,400 Gold & $60 to $75 Silver”

Mark, Like most things, you’re reading my ‘handwritten’ computer notes. The capitulation zone can be best characterized as the point where those beating the grass (strong hands) are finding it difficult to locate snakes (weak hands) to scare. The big flush since April illustrates repositioning within the secular trend. These setups tend to foreshadow acceleration … Continue reading “Capitulation Zone Explained In Silver”

Statistically speaking, gold stocks remain strongly correlated with gold. All markets breathe (ebb and flow). Unfortunately, emotions often distort perceptions. Investors’ reactions to short-term ebbs (under performance) can distort the reality of long-term flows (out performance). The HUI, excluding dividends (a big exclusion), has risen from 73.77 to 497 since 2001. Gold, however, has risen … Continue reading “Gold Bugs Confident”

While the ebb and flow is becoming more violent in gold and silver, its increasing amplitude does not alter the secular trend. A parabolic or extended run, like clown at a formal business convention, will be obvious. The acceleration from the primary trend will reveal itself through a statistical ‘spike’. All the chatter about an … Continue reading “To Quote A Friend, We’re Nowhere Near a Top in Gold!”

Morning Observations: (1) Critical support tends to be tested as resistance. (2) Silver has become an explosive market. (3) The lower magnet is not done pulling. Gold to Silver Ratio (GSR), Monthly Average Price: Source: http://edegrootinsights.blogspot.com/2011/05/gold-to-silver-ratio-gsr.html

While the recent moves in gold and silvers have been impressive, they remain well within historical norms of an accelerating trend. Silver, London P.M. Fixed (Silver) and Z Scores from Primary Trend Gold, London P.M. Fixed (Gold) and Z Scores from Primary Trend When coffee houses are filled with discussions of gold, silver, hidden gold … Continue reading “Early Stage Trend Acceleration in Gold, Silver, and Gold Shares”

Gold, following historical precedence, is leading. Gold led the gold shares until 2010 breakout. The gold shares, despite the constant wall of worry, have played an impressive game of catch since 2009. Gold is currently probing the upper trading channel (green circle). This is an explosive setup for both gold and gold shares. Yet, most … Continue reading “Explosive Setup in Gold and Gold Shares”