I know that all the ratio charts I post can bore the heck out of some readers, but they are vital to getting an early read on macroeconomic turns. They even bore me sometimes. In fact, I may start incorporating more charts of individual stocks because after all, that is where the action is if like me, you trade stocks and options as opposed to futures or Forex.But for now here is a nominal monthly chart of gold. No ratios, no comparisons to anything. Just gold and its progress - in USD terms - bleeding off the excesses of the January spike above 1000. Really, when you think about it, gold at 800? What is wrong with that? I'll tell you what is right with it... what is right with it is that we are getting all those lower panel indicators reset from severely over bought to areas that have provided support throughout this secular bull market. What is also right with it is that we are getting into an area of confluence with the 18 month ema (which has provided support for the entire bull), the green dotted trend line and the 62% retrace level. There is a lot right about this chart and I will tell you, despite the cries of foul by gold bugs against the evil "cabal" there was a lot wrong with the blown off and over bought chart back in January. I feel much better now.
There will come a day when this bull market ends. But for now and the foreseeable future, this blog will continue to be a big picture perma bull on gold and gold stocks. This is not a gold blog and biiwii.com is not a gold website. It's just that this is in my view the most solid bull market on the planet currently so it is the one that gets the most of my attention.
