Comments in this blog refer to my charts collection found at
For intra-week comments go there, updated more frequently.

Wednesday, June 27, 2012

Copper blues.

Not that copper brings anything new to the story told by silver and gold; rather complements it.
Few charts of that industrial metal.
On both daily and weekly charts copper is sitting on a crucial support at 3.3 after breaking trendline supports.
However, monthly chart is the most bipolar.

It's either H&S with obvious consequences or if you had not enough lithium it's a triangle. Good thing is that we should know very soon the real story here.

Friday, June 22, 2012

July's Gold- what the precious metals are trying to tell us.

It's been a while since I commented on silver and gold here. I have kept some of the PM charts in my public chart for your peruse though. Now it seems to be perfect time to put up some fresh comments here too. You can clearly see that July has given a kickoff to a gold rally three Summers in the row.
If you look closely, all those rallies came out of very similar technical background and were clearly a part of a one, powerful wave up. If you expect the same outcome now, I am afraid you may get disappointed. Just see the setup and the outcome of the same season in 2008. Well, July is when the collapse started. It does not take much of the pattern recognition skills to recognize that current setup is much more like 2008 than the subsequent hat-trick.
Very telling is silver chart, on which I have been pointing that a new wave of collapse appears to be coming, and we got the confirmation yesterday and today with silver breaking down under 28 and failing to regain that level.

So what silver and gold charts are trying to tell us?
I presume they are anticipating a deflationary event similar to the Lehman's failure in September of 2008. Why July downside acceleration? Likely another upcoming European meeting ending with a whimper.
OK, just to make it clear, I am not predicting the future, just reading what the charts are trying to tell.
At the end, another show of my long term gold chart as a reminder.

The 4 year gold half-cycle is scheduled to bottom in December of this year, but the full cycle is in the down phase until December 2016, and I suspect that it will not be until then that precious metals will get really interesting again.

Tuesday, June 5, 2012

On eclipses and general weirdness

I can't really help, I have been getting this feeling of weirdness so frequently lately. Maybe it's just because of the bad habit of tuning to the Bloomberg's on my XM radio on the way to work, or it's the planetary alignments. Actually, first thing this morning I got grossly surprised hearing on the radio there that we will have a Venus eclipse of the sun today. Well, before you get really scared and start imagining total darkness and the end of the world scenarios, be aware that it was just a usual media superficiality. The technical term for this rare event is not eclipse but a passage. Apparently a small disk of the planet Venus will be crossing in front of the solar disc today, and definitively no darkness is expected. Than again, on the way back home, radio folks were having this elated, giddy talk about the impending rescue for the financial and the rest of the world, coming from the G7, FED and the God himself (the last one is my addition) as the reason for the market's rebound.
This bring a bigger question forth: why should I or anyone in fact bother to strain my (his/her) eyes and keep looking at those charts where I see only doom if they on the radio know better and there is in fact a Guardian Angel? Or is that just a matter of someones faith? Whether someone is faithful or just gullible, time will tell.
I think it's time to put on the sunglasses and take a look at that Venus passage.
In the meantime, you can listen to this weird  German guy's song about eclipse.

(he was certainly talented and believed in the Guardian Angel, I presume)