John Townsend

The usefulness of sentiment’s stealth crystal ball is about to be revealed to the litany of unsuspecting precious metal bears and skeptics who have convinced themselves that gold’s bull market is either over or, at the minimum, in need of lengthy ongoing retesting, restructuring and consolidation.

There goes gold again, doing something today it has only been able to do 8 other times in its entire bull market beginning in 2001.

This article will examine the current up leg in gold price that originated in October 2008, present a study of the Fibonacci relationships of this price movement that are evident both in terms of price and time, and offer a projection of future price movement within the time frame suggested by the evidence.

Silver is presently making its fifth parabolic appearance of this secular bull market for precious metals.

I was chatting on the phone earlier this weekend with one of my readers about the shocking drop in the price of gold earlier this past week. We agreed that the mini-crash seemed to be the result of a well coordinated effort by some powerful bullion banks who, incidentally, are notorious for shorting gold.

There is no other way to describe silver’s price movement of the past 13 weeks other than to call it parabolic…..

Markets rise when the preponderance of participants are buyers, and fall when the preponderance of participants are sellers. One of the key ways to anticipate the pendulum swings of participant behavior, and therefore price behavior, is to evaluate sentiment. Sentiment, more than fundamentals or technical analysis, trumps everything. When too many players are on the … Continue reading

* Gold managed to hold this week with a low higher than last week’s low.  However, GLD did not.  Sooooo…. with that bit of ambiguity, I’ve got to think we likely have not seen the bottom in gold as of today. * A couple of possibilities for the bottom.  First, let’s look at them with … Continue reading

Its mid afternoon Tuesday and the markets are selling off – still.  It seems like it will never end.  Big red candles on every chart I look.  The VIX, the temperature gauge of fear, is rising again and the news headlines are filled with gut wrenching uncertainties about US Municipals, foreign countries that are characterized … Continue reading

Last week I offered some analysis using the True Strength Index indicator on the daily and hourly charts of GLD, GDX and GDXJ.  This week I would like to offer what I believe to be a realistic look at what could be headed our way in the upcoming month of July.  The GLD, GDX and … Continue reading