Tuesday, April 12, 2011

04.12.2011



Comparing Today with the 70s


It's very interesting how the market has been comparing very well with the 1970s. Both time frames were inflationary and have good reason for big moves. We have seen nice breaks from the $17.75 low in August of over 100% and when viewing this comparison we have a long ways to go. I don't have much more to say on this chart other than I have put this information out and it is kind of fun watching this and seeing how close the comparisons are going to generate. I don't have to wait too long because the explosion brings us to the summer of this year and it is one of those wait and see. Obviously the story that will bring the market higher would be comex failures as well as the derivative markets exploding.

Hanging in There. $40 Still Holding.


This has been one heck of a battle here with this five day moving average and the blue one day average. The five is hanging in there and the one is trying to push the market lower and reverse the trend. This your classic battle of moving averages on market swings. The five day moving average is bullish, but because it's not breaking out in an uptrend it would lose points. It does gain points by holding the $39.75 support level that is big within' the fibonacci structure. Currently the market is in a descending triangle and many paper (and bullion) traders will see this. When more people focus on the same trend it can create big time volatility when it tries to resolve itself from the indecision over the last 24 hours or so. I will not predict which side it will break out from, but I will predict that we will see some more volatility and a decent chance the first breakout will be the failure. This means if it breaks up past the one day average or breaking the downtrend line we will see a down day tomorrow. If it breaks the downside below $39.75 or below the five we may see $41.00 by days end. Be back later with the 1979 comparison update. If you want to see more, there is a video on the youtube channel.

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