Bear's Lair
Bear Markets always follow Bull markets and a severe stock market correction is long overdue. Bears Lair will spot, monitor and analyze the stock market correction as it develops.
Never before have we seen major indicators in such a conflicting state.
We at Sunshine Profits suggest holding three precious metals (in a physical form) as long-term investments in a “default” precious metals portfolio – gold, silver and platinum.
Well, it appears that the Dow Jones is going to take out its last all-time high of October 2007, even as market trading volume is collapsing. That fact alone should make us wary of the stock market, but the Dow Jones doe
It is a reality of life that those investors who favor gold (and silver) as their preferred asset-class need to have ‘thick skins’.
Last three months were sort of a roller coaster for precious metals investors – gold and silver hit a local bottom at the beginning of November and it looked like nothing could stop a strong rally to follow.
The last four or five years have been a nightmare for many investors, especially those of us investors in the natural resource stocks.
Gold functions like an alarm clock. A rising gold price usually indicates that financial uncertainty and volatility are the dominant market themes.
Let's take a historical look at daily volatility in the old monetary metals from the early days of the 1969-80 bull market to the present.
Silver has been selling off relentlessly since the Federal Reserve expanded its third quantitative-easing campaign last week. As that decision was highly inflationary, silver's subsequent weakness has really vexed traders.
We had a great week with markets consolidating recent gains and setting up for higher prices this coming week by the looks of things.
We don't hear much about gold and silver anymore on the news. This time last year you could not go 5 minutes without a TV or radio station talking about them. Why is this?
Silver is no doubt tiny on the grand commodities scale. But its attractiveness, spearheaded by a 1000%+ bull-to-date gain to its latest high, has spawned a wide range of products for investors to partake in.
With less than three months left until the end of the year, let's do a quick recap. Silver may not be as shiny as gold, but it has been no pushover to the yellow metal.
Silver has certainly enjoyed an impressive run of late, catapulting nearly a third higher since mid-summer.
The price of silver reached a 5-month high this past week as investor interest seems to have been rekindled in both gold and silver as belief in financial markets increases that the latest round of monetary easing from the Federal
[Before reading this update on Fractal Silver, you might wish to skim through my recent public article, "Fractal Gold Review and Update" since it discusses key timing issues that this article is based upon.]
After being sucked into the general commodities correction, silver has been relentlessly drifting lower since late February. But this weakness has forced the white metal down to a very bullish place technically.
In the Wednesday stock report we took an indepth look at gold to see what the chart patterns were telling us.
On Friday the price action in gold caught the attention of most market participants as gold put in a monster move to the upside in light of risk assets such as the S&P500 selling off sharply.
We now have a Bullish Extreme in the USD. Over the last 5 years, Bullish extremes have been very good indicators that a top was within a hand's reach.
The past couple months investors have been focusing on the equities market. And rightly so with stocks running higher and higher.
Gold and silver are very close to entering the mania phase of this bull market. In order for gold and silver to go into the mania phase, value has to be diverted from somewhere, and that "somewhere" is most likely stocks.
This week may provide some trading opportunities for us if all goes well now that most traders are investors are all giddy about stocks again.
The week was interesting as we basically stalled out for the most part with many US indexes and stocks, especially coming onto the end of the week.
Analysis Of The Long-Term Silver Chart Suggests Significantly Higher Prices
Below, is an extract of my Silver Premium Update for 25 January 2012:
I have received numerous emails asking about silver. This article was prompted by a question enquiring what the silver price might be if my gold forecast of $4,500 proved to be correct.
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