At the beginning of May, I pointed out that gold was likely in an oversold condition and may have found a bottom (~$850). I then illustrated how the Price Oscillator (PPO) was starting to turn upwards and how the 200 Day Moving Average (200DMA) was providing strong resistance for any further downside movement.
Well, the updated gold charts below confirm (somewhat) my earlier intuition as gold is gaining on the 50 Day Moving Average (50DMA) while the PPO is making positive strides.
Well, the updated gold charts below confirm (somewhat) my earlier intuition as gold is gaining on the 50 Day Moving Average (50DMA) while the PPO is making positive strides.
Daily Gold
Weekly Gold
Bottom Line: Updated charts are further confirmation of my previous closing comment: As credit crunch phase 2 kicks in, people will once again flock to gold and it is likely we will see it reach $1,200 by the end of 2008.
Regards
Randy
4 comments:
Hi Randy;
I'm not a conspiracy nut myself, but this 'rumor' has surfaced increasingly in the past couple of weeks. Have you seen it?
As you can see, it was picked up by a very credible finance guy and printed on a very reliable website. I suppose anything is possible if the economy did, in fact, crash...
Regards,
David
ECONOMIC COLLAPSE IN SEPTEMBER?
by Clif Droke
May 19, 2008
A rumor is swirling around the Internet that an inglorious end to the U.S. economy is imminent. Unlike previous rumors to this effect, this one carries the weight of recent events in the financial realm and has many believing the rumor will come to pass.
Let’s examine some of the claims being made: On March 18, 2008, a “closed door” session of Congress was held for only the fourth time in history. According to House Rule XVII, clause 9, it is forbidden for members of the U.S. House of Representatives to reveal the discussions held behind those doors. The penalty for leaking such information includes loss of seniority, fines, reprimand, censure or expulsion. According to news sources, one purpose of the meetings was to discuss new surveillance techniques to be used by U.S. Homeland Security. Rumors continue to swirl as to what the other topics of discussion took place in that meeting.
According to the Australia.TO newspaper, as reported in the May 2008 Last Trumpet Newsletter (LTM), several congressmen were so incensed about what was discussed behind those doors that they were compelled to leak the contents of the meeting. Following is what is rumored to have been discussed: Imminent collapse of the U.S. economy by September 2008; imminent collapse of the U.S. Government finances by February 2009; possibility of civil war within the U.S. resulting from the collapse; detainment of “insurgent U.S. citizens” in anticipation of their moving against the government; the potential for violent action taken by citizens against members of Congress due to the collapses; the merger of the U.S. economy with those of Canada and Mexico as a solution to the collapse; the introduction of a new tri-national currency called the “AMERO” as another economic solution.
Needless to say, that’s a lot of information to process. Unfortunately none of it can be verified and it essentially falls under the category of rumor and as such must be treated as suspect. It brings to mind another rumor that had the Internet community abuzz last September regarding the so-called “Bin Laden options trade.” You may recall the rumors that circulated across many Internet sites in Sept. 2007. The rumors concerned an unknown trader(s) placing options bets on the S&P 500 and the Dow Jones Eurostoxx50 index that wouldn’t pay off unless a 25%+ crash occurred by options expiration that same month. These high-profile “mystery” trades were used by several independent and mainstream media outlets to conjure up images of another 9/11-type terrorist episode.
Thanks David,
No, first time I've heard this story. Downright scary though--if true. Now that you've peaked my curiosity, I plan to scour the net for more info.
Again, thanks for the info--rumor or not.
Randy
Check this out.
PROTOCOLS FOR ECONOMIC COLLAPSE IN AMERICA by Al Martin
I'm not sure what to make of this. Pretty scary stuff. A search on Al Martin's site turns up nothing. Perhaps it was sent out via his subscriber email list.
~CK
CK,
Yes pretty scary but the info is ~ 4 years old. Hope he's not right
Randy
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