Gold's Potential Triple Bottom and the 1.618 Golden Ratio In Timing

The timing is not exact but it is darn close.  Depending on when you measure the actual first two bottoms it looks like about 1.65ish.

Dave from Cincinnati sent me a picture of the gold potential triple bottom with his Golden Ratio calipers and brought my attention to it.

This ratio is probably more familiar to those technical analysts who follow Fibonacci retracements which are related to the Golden Ratio.

This last bottom may have come about five or six days late at 1.618 perhaps.  A valiant but failed effort perhaps to extend and pretend.

Close enough for government work.

I cannot account a trend change until we break the trend firmly of lower highs and lower lows.  But there is no reason not to have a bit of fun while waiting to find out.

Fat Lady Singing: The Alibaba IPO Top-Ticked the Market, Precisely

"As flies to wanton boys are we to the gods. They kill us for their sport."

William Shakespeare, King Lear

Wall Street puffed up the stock market indices to get the 'largest ever' IPO of Alibaba out the door.

Just in case you still had any illusions about these being 'free markets,' as if such a thing can even exist without the hard work of honest and objective referees.

After they took that piggy to market, the underwriters and the market manager (GS) let the markets go their own way.

Home again, home again, jiggety jog.

NAV Premiums of Certain Precious Metal Trusts and Funds

Flight to safety.

The prices have not yet begun to reflect the supply situation which is being extended and papered over by leverage.

When that leverage starts unwinding, the prices may go higher with somewhat impressive velocity.

It would be better for the price managers to allow the precious metals markets to go higher now, with a more controllable slope. But their fears and hubris may betray their wiser counsels.

I have this wonderful image of some Captain Bligh (as played by Larry Summers) of an economist shouting that they must 'hold the line' on the precious metals.

And the harried bureaucrats of Treasury and the Fed continue to lease out vast amounts of other people's gold, while privately shitting their pants with the thought of what will happen if their miscarried intervention is disclosed to the markets.  My career!

 

Gold Daily and Silver Weekly Charts - The Almighty Dollar

Gold and silver tried to rally on the overnight but the US market sat on the precious metals throughout the day.

Stocks managed a dead cat bounce.

The action in the Comex, both in the delivery report and the warehouses was inconsequential. That might be a good label for the Comex going forward: the Inconsequential Index.

Oil is continuing to take it on the chin, with various theories about why it is plunging. Some say it is OPEC 'putting the screws' to the US producers who need the higher marginal prices, especially for shale production.

Others say it is the US and its allies hurting Putin's Russia with de facto sanctions on Russia's oil wealth.

Personally I think it is more of a slack in aggregate demand overall that is becoming a concerning trend to anyone who cares about the real economy, mixed with a squeezing out of speculative money due to the Banks being prohibited from engaging in wholesale speculation.

The precious metals story is now in EurAsia, and those who fails to recognize this really do not know what is going on.

Have a pleasant evening.