Monday, July 30, 2007

Our Last Look Back?

Asian Markets Bounce Back From Plunge

TOKYO (AP) -- Asian markets bounced back and European stocks edged higher Monday as investors snapped up stocks after last week's global sell-off and reassessed the possible fallout from U.S. housing woes on international markets.

Japan's benchmark Nikkei 225 index inched up 0.03 percent to 17,289.30, after having plunged 2.4 percent Friday. Hong Kong's benchmark Hang Seng index rose 0.8 percent, Singapore's market climbed 1 percent and Australian stocks gained 0.4 percent.

Chinese stocks hit a new record, but Philippine shares slid 1.5 percent.

That's a pretty thin definition of a "bounce", but we'll give them the benefit of the doubt. Over 50 "world" economies are kicking sand in the USA's face. America is a sinking ship in a global pool of liquidity. That pool is swollen with US Dollars, and they're going down the drain. Somehow I just don't envision all these "emerging" economy's allowing themselves to be dragged into the American sewer system. I also believe that these emerging economies will not be scared out of their Gold by a tiny pack of paper pushing vermin Rat Bastids in New York. They laugh at every opportunity to buy Gold with their worthless Dollars when the vermin put it on sale.

Since late January, Gold has traded in a range between 640 and 690. These Comex Vermin have succeeded at nothing but a stalemate. The paper mache ceiling they've pasted together to cap Gold is becoming no match for the concrete floor Gold Investors are placing beneath it...and they know it. Dem Rat bastids have succeeded at nothing but buying more time for their puppet masters. Yeah sure, to date they have "capped Gold". BUT, they have been total failures at pushing the price lower.

I know I have beaten the 2005 vs. 2007 Gold comparison to death, but please allow me to beat on it one more time. I have a feeling this may be the last time we have to "look back" at Gold for a while.

In 2005, dem Rat Bastids were trying to cap Gold at 450. They had a nine month period of success at maintaining a stalemate, and then their paper mache ceiling was smashed like a pinata on Cinco de Mayo. Today, dem Rat Bastids have succeeded in capping Gold at 700 for about 14 months now going back to May 2006. Investors across the globe are all holding broomsticks and bats waiting for a swing at dem Rat Bastids Gold filled pinata. The Vermin's worst fears are about to be realized when the world starts swinging at their pinata all at once. And that day is fast approaching.

Please click on the charts above, courtesy of, and follow along.

In June 2005, Gold broke thru it's Spring high downtrend line. It rose to meet it's major downtrend line off it's 455 high. The failure there at resistance resulted in a retest of the June low and subsequent June breakout. Trendline breakouts are often retested before a market powers to new highs. As you can see, following the retest of the June low, Gold moved back to, and thru the major downtrend line in short order, and 450 was soon history. [Also note that the break of that trend line was retested.]

In July 2007, Gold broke thru it's Spring high downtrend line. It too rose to meet it's major downtrend line off it's 730 high. The failure their at resistance has resulted in a retest of the late June '07 low, and July breakout. Could this "dip" in Gold here be it's last "look back" before it powers higher to and thru 700? As always, ...time will tell. It's just fascinating to me how closely 2007 Gold appears to match up to 2005 Gold.

Reaction in Gold following the June 2005 retest mentioned above is worth noting should Gold's retest today of the July Breakout be successful. We could quickly move up too and possibly thru 700. If this should come to pass, keep the party hats under wraps until that 700 breakout is surely will be. The second move thru 700 will be the beginning of the end of dem Rat Bastids reign of terror in the Gold Markets.

In the interim...forget all this crap about people selling Gold because it's liquid and they can quickly raise cash to cover margin calls in the Stock Market. What FOOL would sell their Gold to protect their over priced and destined to crash positions in the general equity markets. There is no question that margin debt is an issue. Just recently it was reported that margin debt on the NYSE was at an all-time high. Similar reports appeared just before the markets crashed in early 2001. Um, correct me if I'm wrong, but Gold has been all up since 2001, has it not? Up rather substantially I might add. A fool and his money are soon parted. Gold is REAL money. I pity the fool...

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