Premium Updates

Message sent on September 29th 2010

This week we are talking about fear, gold supplies and major accumulators of gold worldwide. Recently gold broke meaningful tendency of being driven by Euro weakness significantly changing possible implications for gold which was the main reason for us to send Market Alert and no longer justify shorting precious metals market.

We've analyzed gold, silver and precious metals mining stocks and commented on recent upswings backed up by high volume, breaking meaningful tendencies and approaching key levels on most of our 19 charts prepared for today. In fact, one of these charts is just a sneak preview of one of newest tools which let us analyze what influence stock options expiration could have on gold prices.

On the other hand, we have seen a spike in the volume on the GDX:SPY ratio, the Gold Miners Bullish Percent Index still suggests caution, and  several indicators point to a correction materializing very soon - the short-term signals are mixed. The above - by no means - should be interpreted as a suggestion to sell one's long-term holdings in the precious metals sector as we are in bull market.

The full version of today's analysis will be posted later today.

Market Alert sent on September 14th 2010

Is it true that the dollar, the yen and Swiss franc may be better investments than gold if the world economy slips back into recession? It depends on what time-frame you take into account… This week stocks rally encountered multi-month resistance level, USD Index might be forming bearish head-and-shoulders formation and gold stocks are failing to break above the rising resistance line, just like gold is.

We have analyzed the Euro and USD Indices, the general stock market, our correlation matrix, gold (also from the non-USD perspective), silver, HUI Index, and GDX ETF charts. In this week's Premium Update we've once again decided to supplement our regular analysis with GDXJ:GDX ratio in order to gain additional insight into investors' perception of the market. Moreover, Williams %R and RSI applied to the Gold Miners Bullish Percent Index and re-examined cyclical tendencies patterns for USD Index and short-term SLV charts provide us with even more details.