As we move along, we are trying to tell the story of this current Historic Gold Bull market through charts. Some people do not feel comfortable with charts. Some people who don’t really understand charts often say that “Charts only tell what happened in the past.” That is a pure statement of ignorance.
Yes, charts do show what happened in the past because charts are made up of graphic data that shows the investing decisions of market participants. Thus, charts also show what the decisions of market participants are today, and the trend of those decisons for tomorrow.
In reality, “fundamentals” dont’ move markets. What moves markets is the perception of what market participants “believe the fundamentals to be” at any point in time. We have just experienced some brain gas by the markets as the Fed printed up over $1.3 Trillion Dollars to send to Europe- a massive printing of Dollars that will force the value of the Dollar lower due to increased supply. Yet, the market participants did nothing in the face of this huge Dollar Printing to devalue the Dollar which would have run the price of Gold sharply higher. Instead, the market participants chose to listen to the Fed’s words rather than to consider the Fed’s real life actions. The Central Banks didn’t sit on there hands. They accumulated lots of Gold at the bottom of Gold’s long-term channel, fully knowing that the massive paper currency printing is going to send Gold through the roof once the markets finally figure it out.
In a book Peter Lynch, the head of one of the most successful Mutual Funds in history, said that he invested via market fundamentals. He said that he often bought a stock based on its fundamentals, and then waited for the market to figure it out. Mr. Lynch figured things out, and then waited for the markets to figure out the real fundamentals. That is basically what the Central Banks have been doing for the last several months. They know Gold is going to rip higher to continue its parabolic run- and they are the ones doing the paper currency printing to guarantee it will happen.
Charts are no different than most things in real life. If you want to pick a winner in a football pool, you look for a football team that is geting better- trending better; not a team that is getting worse. A basketball coach studies an opposing team to learn what their habits are, and that is no different than studying a chart to find its own unique set of characteristics. Life is all about what humans do. Humans tend to have habits. Human habits often dictate that they do the same thigs, over and over. We are not just talking about a single human- we are also talking about groups of humans over time. To a large extent we humans have developed lots of toys, but in many ways we have not really advanced since the caveman days. We tend to hunker down in groups, and we tend to live life based on our emotions of “fear and greed.” And usually, the whole group tends to move at the same time.
Current SuperBull Gold is created by the SuperBull in Dollar Devaluation, created by the parabolic US Dollar printing going on. Few people really seem to understand Dollar Devaluation. Most look at the Dollars being printed and try to figure out where the Dollars are going. Where the Dollars are going in this environment is much less important than how the increase in Dollars is deteriorating the value of the US Dollar and the effect of the Dollar Devaluation on the pricing environment. Wtih aggressive Dollar Devaluation, “price and value” diverge. It is crazy, but true. I have started to write about that concept in the article series on “The Dow Crash- Price versus Value.” Those articles will be linked at the bottom of this article.
Below, is a chart of Gold with all kinds of lines rising in what appears to be an envelope with the price of Gold generally riding along the top. The lines are “moving averages” that show how the price of Gold is rising “on average” over different periods of time. Only a SuperBull Gold parabolic move in price keeps the price of Gold rising along the top of the moving average envelope like cream floating on top. The price of Gold is almost always moving higher in the SuperGold Bull so we see the moving average envelope constantly rise from the lower left of the chart, up to the upper right.
The yellow zones on the chart show places where Gold moved sideways for a bit, then exploded higher in price, out of the top of the moving average envelope. Gold has now risen up and out of the moving average envelope, just like the other times where Gold exoploded higher. All of the moving averages in the envelope under Gold act as support to Gold’s price since they are the trend of investors’ opinions of the fundamentals for Gold. Think back to how investors spend so much time worried about whether Gold was going to continue rising over the last 10 years, then look at this chart. This is why they say that “Bull markets climb a wall of worry.” There is nothing in this chart that suggests that Gold is going any place but higher.
BIG PICTURE GOLD- PART 1– THE ONLY GOLD CHART THE LT INVESTOR NEEDS
BIG PICTURE GOLD- PART II– GOLD BULL PARABOLIC GROWTH
BIG PICTURE GOLD PART III- GOLD BULL LOG CHANNEL
A much more extensive writing on Gold and Gold charts, where Gold might be going, and when; is linked, below, to Jim Sinclair’s site. You will have to scroll about half way down the page, but the article is there in its entirety.
As we go further in this series on “Big Picture Gold”, we will eventually merge our thoughts with those currently being added in my series on “Price Versus Value” in the series on “Dow Stock Crash.” I’ll post the links to Part I and Part II, below, so that you can start to become familiar with the concepts of “price versus value.”
My article on THE SILVER ROCKET is linked, below
The Gold version.
And finally, if you need a break from all of the negativity, you might want to take time out to read the following story to a younger loved one in the family.
Goldrunner maintains a subscription site that covers Gold, Silver, and the Gold and Silver Stocks that can be found at;
Goldrunner is also in the process of starting a new and free public newsletter that will be delivered via e-mail, called “Goldrunner’s Fractal Corner.” If you would like to receive this newsletter, you can send an e-mail to Goldrunner at Goldrunnerblog44@aol.com
For the moment,
Please understand that the above is just the opinion of a small fish in a large sea. None of the above is intended as investment advice, but merely an opinion of the potential of what might be. Simply put: The above is a matter of opinion and is not intended as investment advice. Information and analysis above are derived from sources and utilizing methods believed reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Comments within the text should not be construed as specific recommendations to buy or sell securities. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities. Do your own due diligence regarding personal investment decisions. In the interest of full disclosure, GOLDRUNNER is personally invested in the Precious Metals sector including various Precious Metals and other individual stocks. GOLDRUNNER reserves the right to modify or eliminate any or all positions at any point in time.
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