There is a trend forming (not totally confirmed yet but the symmetry looks right) on the Gld chart for a high around March 25 and this is what Amanita has predicted too, so that would then imply a low will form in July as my projected spx peak happens, then things start to get fugly going into a big stock market low in 2014 and I am also seeing NUGT forming a big low in 2014 too, this would imply that a general stock market panic will drag the gold stocks down with it.
Hi Russ,
I don't have predictions of when a top or low comes in for gold/stock market. I was guessimating that a hi comes in Apr/May only because this is generally the peak bullish period for equities. Gold is going into a bullish period too and typically peaks around May/June exception was last year of course.
My take away is that I got some very bullish signals for equities last week and it started end of Dec too. Now we have the Rut hitting all time highs which is typically bullish for the markets going forward and positive pnf trend changes last week for spx/nasdaq..and not to leave out the banks of course. Yes, we are overbought but that money on the sideslines is itching to come into the market. But the real big money and imo the thing that will give real momentum to equities and yes gold is when the bond market starts cracking which we are seeing signs now.
Everyone is recognizing the bond bubble and many of us remember the Internet bubble..One might think well this will collapse equities and be bad for real esate (which has shown a break out last year on the weekly $DJUSHB..note how spx is following that index....by 2 yrs.
http://stockcharts.com/h-sc/ui?s=$DJU...7&listNum=5
That said, the thing is it might not collapse equities but inflate equities and yes gold and commodities and real estate...(btw, Merriman has real estate prices starting to go up around 2015 and said we have either bottomed or will be this year by June in real estate).
When the bond bubble bursts it means the Fed has lost control and investors will realize that Washington is broke..and that's where gold comes in....and QE....flight to safety coming into gold...because that sure ain't gonna be good for the $. Whenever this happens, money flow will go into cream of the crop equities. Now, I might be wrong here for the first half of the year and we still correct and again I have stated the negative pnf trends for gdx/gold so I will be alerted when improvements are there along with my own TA. For now, one has to be open minded this might not happen yet but it will. We must inflate or we die! (not litterally). That money flow will find its way into the economy too.
We all can argue whether this correction is significant of a top in gold or not. Time is going to tell and I feel it's all about watching bonds and the Fed loosing control...because really, if they applied true austerity, that would collapse our markets and economy and send us into a depression. Obama's presidency has not shown he is willing to do that and I doubt the next 4 yrs will be different imo. So just because we heard about some dissentiion on QE, a lot of that money has been parked in bonds and it's cracking now and I think that's why we didnt see a reaction to gold or equities when he came out with the last one in the fall. But it will eventually.
So this is why I can see equities and gold rise together and yea, it could be first half of the year. I might be wrong in my thinking. I have no time frame for when this is going to happen. I let pnf tell me if we are at extremes for equities and we have a ways to go based on that ..meaning overbought on the nyse bp. Yet, we are overbought short term based on TA.
Gold needs to hold 1600 or we will test Dec 2011 again.
Best to you
Irene