BullBear Trading: Stock and Financial Market Technical Analysis

Nominal Gold & Gold vs. Currency, Commodities & Stock Market

Excerpted from the June 12 edition of Notes From the Rabbit Hole (NFTRH140):

Nominal Gold & Gold vs. Currency

Despite the pervasive bearishness in broad markets as well as the gold sector, gold
remains too far above its weekly EMA 30. It is due for a correction, all the way down to
the low to mid 1400’s (written sarcastically). This would be in keeping with the lovely
and orderly MACD consolidation highlighted in yellow.

Gold in various currencies is in various shades of bullish. That is because we are, in slow
motion, watching these paper promises fail to store any value whatsoever as governments
routinely do to their paper whatever is needed for political expediency. Governments
keep telling their citizens that they care about and support their respective currencies as a
way of maintaining confidence, diminishing though it is. Gold is the only commonly
accepted monetary refuge from the ongoing abuse of the various debt notes of the world.

Gold vs. Commodities & Stock Market

Above is of course, a variation of our most important chart for the gold mining
fundamental case. Gold-CCI maintains a break above resistance (now support), and gold
has broken trend lines in oil, industrial metals and the S&P 500. In fact, the weekly
AROON oscillator (not shown) has gone positive on gold in relation to all markets noted
above except crude oil. Gold is now in a weekly uptrend vs. commodities, therefore,
gold mining fundamentals are in an uptrend.


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Comment by Gary Tanashian on June 26, 2011 at 8:00am

Just because you are a linear thinking herd member, don't resort to insulting others.  Gold is in a weekly uptrend vs. broad commodities and this is an indicator of the 'real' price of gold.  The nominal price will probably decline in here, but it is the real price that is important as a sign of draining liquidity and oncoming economic contraction. So before you make an uneducated ass out of yourself, get a clue first.  You want to call me a pumper?  This is my last post on gold:  http://biiwii.blogspot.com/2011/06/goldbug-headlines.html

Comment by george land on June 25, 2011 at 7:27pm
"Gold is now in a weekly uptrend vs. commodities" What kind of wacko statement is this, some of the postings are hard for me to determine when they were posted since lot of the post are not date stamped...But if this post was recent it had to have been by someone wanting to pump gold before the drop gold took week ending june 24,,, Moose Club also has had a recomendation on gold the last few weeks, even today still recomending gold after the drop, people need to get a life instead of trying to mislead the sheep, if not trying to mislead than such posters do not have any knowlege or credability of the subject they post..

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