24 thoughts on “CHARTS OF THE DAY”

  1. Michael

    Have you seen a similar turn around in the Canadian and Aussie dollars.
    Also Aussie stocks like BHP and RIO?

  3. Wiseguy

    Both the Yen and Euro make me afraid to hold them for any time at all. I trust holding gold more than trusting the Yen. Bank of Japan can always add another zero to their buying. What do they have to lose?

    1. Paul

      If that is true, then the long term trend for gold will continue to be downward and it is certainly starting to look that way. The demand for gold has not been as low, since 2009…

      1. JoshuaF

        1 billion Chinese and another Indian 1 billion gold freaks with Indian wedding season coming up. The West is irrelevant apart from bankster jobs report games.
        You have a July low and a rally . The pull-back should go to about 1115 and then the rally to 1220 or thereabouts. It is normal price action. Sentiment extremely low. I am interested in stocks here. Many stocks at the same price as they were when the POG was $40 lower! ABX and NEM and many others.
        The line up in the next day or two is coming to fruition. I have a bunch of orders below the market and some that got hit today.
        If this rally in gold stocks does not take place, then I will throw in the towel!

  5. Gregor

    The script I described here is still in play: http://blog.smartmoneytrackerpremium.com/2015/08/currency-confusion.html#comment-209081

    How this works: if stock markets recover, gold will start to fall again. If stock markets fall harder, gold will hold initially, then fall again. There is only one outcome in which gold rises: from a deeper low, after a true global bear market in stocks, which gets central bankers to panic. No central banker panic? Then no sustained ascent in gold prices.

    Gold remains in a bear market, and can stay there for years. Repeat: years. There is no reason why one should pursue gold over some other asset class now. Why bother? If gold does enter a new bull market, you can let others take the early gains, and hop on later. But again, without the trigger of central banker panic, gold will remain in its bear market. And there is NO reason to think otherwise.

      1. Anthonyo

        Bob realistic may be, but “reality” wont save my NUGT … So before the Fat Lady starts singing to fall below $1000 by end of Novembert, could we pls have a bounce first?!

        1. bob davis

          The nugt, gold and oil charts are all showing definitive head and shoulder patterns. While there have been continuous calls on this site for a rally to $1250, its looking unlikely on the chart. The gold rally possibly topped at $1160. Unless gold makes a bold rally from here, on fed announcements, it’s looking like a fall to $1080 is on the cards initially.

          1. Anthonyo

            Yes going long seems to have been a mistake in retrospect at this point. Tomorrow’s job report, if anything, may actually raise the possibility of a Fed rate hike and hurt stocks and gold.
            We will have to wait and see.
            I will probably just hold the NUGT a longer time for when the cycle turns up again after gold meets its maker below $1000, and even add to my NUGT at that point and hold.

          2. Braden

            1080 shmen eighty. Look at the valuation of junior mining shares and tell me you would want to be short at this point in the cycle. BUY and manage your position. Every 10% move higher in JNUG i sell some and 10% down i buy some. I don’t sweat i MANAGE with a long bias.

          3. bob davis

            I think Gregor’s point is spot on. Pm’s and the miners have the potential to go a lot lower for a longer period of time. Looking at the longer term charts, gold could fall to the $600-800 silver $7-9. Let’s face it the chartist (deflationists) who called that in 2011,and who were ridiculed, when gold and silver both made lower highs, have been pretty accurate up till now. Sure the price of miners/pm’s seems attractive, that doesn’t mean the they are impervious to further large drops, and I imagine bankruptcy,. Cash is definitely king at the moment.

  7. William

    Are miners at dirt cheap valuation? HUI Index is trading at FY16’s PE of 22x…and this is assuming FY16’s EPS growth of 6% on top of FY15’s EPS growth of 13.5%. Are these EPS growth achievable given current gold price? My bet the answer is no!

    In addition, HUI has a PE trading band of PE 11x to 251x…given gold’s current downtrend, won’t surprise that valuation has further room to overshoot on the downside!

  8. JoshuaF

    At 8.30 EST Friday gold did a violent move to the upside to 1132 and half an hour later it was down to 1117 about 1.3%. At the time I thought it was the usual suspects running the buy stops to take the market down. However simultaneously the same thing was going on in the USD/JPY. The dollar went to 119.62 and back to 118.54. a 1.08 move or about 1%.
    Maybe there is more to it. Do you (or anyone else) have an explanation for this?

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