Gold Silver Worlds: It’s getting really bad when you can’t trust the criminals in power to do what you you think they are going to do.
Above we see on the XAU Chart that When the close of the XAU gets more than 10%(Gold Line) above it’s 50 Day Moving Average (three red circles make that very clear), it becomes vulnerable to a correction, which is where we are now. In the GREEN Box in the lower right hand margin of the XAU Chart we see the entirely unhearalded GOLDEN CROSS (except for a few PM Bulls). Now for those practicing and loving “Hill Billy” TA, that is a perfect indicator EXCEPT that it comes at a time when the close of the XAU has gotten 10% of its 50 Day Moving Average.
Now from Cicero, we have this quote: “The Sinews of War are Infinite Money”, which we know to be true whether it is in the Industrial Stocks or the PM Stocks or whether it comes from Gvt Printing (Counterfeiting) or honest capital. Notice the Speed Resistance Lines (lower ones) 1 & 2, indicating where the capital in-flow rate will slow down before re-asserting itself.
So far, IMO, its been Investor Capital fueling this run, and will be again once the Correction & Consolidation have run their course.
What has struck me like the North Wind, cutting my face as it speeds off the Bay, is the ALL CLEAR called by a number of PM Analyst / Writers, classicaly at the end of the Third Leg in a Bull Movement started in early December, fully exploited by early Bull Riders. Now we have that “Spikey” top movement that like Circe and the Sirens, lure late comers into dangerous waters with their song of easy profits. Precisely when we are ripe for a correction.
NOW the question becomes WHAT of this Leg & Rally ?
The Breadth in this rally has slowed down in both daily and weekly measures and the rally has lost its Momentum, within its Longer Term TREND (which is still UP).
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