Gold is Definitely NOT a Safe Haven in the Current Huge Credit Crisis/Deflationary Bust/Tsunami
Gold is a safe haven from inflationary economic upcycles, such as the substantial inflationary pressures created during the real estate/consumer credit boom/bubble (fueled by soaring real estate values and very liberal or fraudulent (in many cases) lending practices) from 2002 until 2006, or, a US Dollar collapse, see http://stockcharts.com/charts/gallery.html?%24gold.
Gold is definitely NOT a safe haven in the current huge worldwide credit crisis/deflationary bust/Tsunami, as was seen in it's dramatic decline from $1033.90 on 3-17-08 to $739.80 on 9-11-08, which was Wave A down of the Wave 2 Cyclical Bear Market, see chart two at http://stockcharts.com/charts/gallery.html?%24gold.
The countertrend Wave B upcycle of gold's Wave 2 Cyclical Bear Market since 3-17-08 peaked at $936.30 on 9-29-08, see http://stockcharts.com/charts/gallery.html?%24gold. Note the very large very bearish spike on 9-29-08's candle.
In the current Wave C downcycle of gold's Wave 2 Cyclical Bear Market since 3-17-08 gold should fall to it's primary multi year Secular Bull Market (began in April 2001, though gold put in a modestly lower double bottom cycle low in 1999) uptrend line at $500ish, see chart three at http://www.joefrocks.com/GoldStockCharts.html, probably in the next FEW WEEKS.
.......http://www.JoeFRocks.com/
Gold is definitely NOT a safe haven in the current huge worldwide credit crisis/deflationary bust/Tsunami, as was seen in it's dramatic decline from $1033.90 on 3-17-08 to $739.80 on 9-11-08, which was Wave A down of the Wave 2 Cyclical Bear Market, see chart two at http://stockcharts.com/charts/gallery.html?%24gold.
The countertrend Wave B upcycle of gold's Wave 2 Cyclical Bear Market since 3-17-08 peaked at $936.30 on 9-29-08, see http://stockcharts.com/charts/gallery.html?%24gold. Note the very large very bearish spike on 9-29-08's candle.
In the current Wave C downcycle of gold's Wave 2 Cyclical Bear Market since 3-17-08 gold should fall to it's primary multi year Secular Bull Market (began in April 2001, though gold put in a modestly lower double bottom cycle low in 1999) uptrend line at $500ish, see chart three at http://www.joefrocks.com/GoldStockCharts.html, probably in the next FEW WEEKS.
.......http://www.JoeFRocks.com/
Labels: Gold
posted by Joe Ferrazzano at
9:41 PM
1 Comments:
My primary trade tomorrow (day trade) is now UWM, the ultra long Russell 2000 (RUT) ETF, because, RUT's daily candlestick chart looks better than XOI's (AMEX Oil & Gas) does, and, oil & gas are still crashing, so, UWM is a much safer trade right now.
By
Joe Ferrazzano, at 10:30 PM
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