Tuesday, August 31, 2010


Note: click on any chart to enlarge

DOW Chart looks bearish with a falling MACD (bottom of the chart), but it is a bit oversold right now and has a rising Full STO (top of the chart). I anticipate we'll see a bounce back to the 50 day moving average (MA 50 - blue line) before the next MAJOR downleg - a decline that is already baked into the cake.

(Note for the record: I believe the DOW will take out the Mar 09 low of 6,400 before this "Economic Depression" is over - and it may ultimately fall much more than that - Sub 1K DOW)

S&P 500 chart is nearly identical to the DOW chart above - a small bounce up to the 50 day MA is more likely than a large drop from here

Gold is looking quite strong with a bullish (rising) MACD, though a bit overbought for the time being. That's not to say we can't reach a new all-time high from here (it is possible), but a short-term pullback (falling Full STO) can be expected at anytime

Silver Chart is very similar to gold, with a rising MACD, but the Full STO illustrates a slightly less overbought condition. Note: Many folks are calling for A MASSIVE price surge once $21 is decisively broken. Some are even targeting $27-30 within months... Silver could become interesting soon.

Dollar... Hmm. Could go either way from here. The US Dollar index has been hugging its 50 Day MA for a while now and the MACD, though rising, looks like it may be starting to turn downward (note the downward sloping black line). A very tough one to call for the short term, but I have no doubt where it's headed over the longer term.

So where is it headed for the longer term you ask? Well, let me put it this way: No country in the history of the world has ever been successful in printing their way to prosperity - and the US will be no different.

Bottom line: The US dollar index is going to ZERO over the longer term



Sunday, August 29, 2010

Peter Schiff on MSNBC 25/8/10

Superb interview w/Peter Schiff discussing housing, debt, funny money, moral hazards, Congress, etc.

Bottom line: many dangers lie ahead with the likely end-game being a inflationary depression.