Sept. 18 (Bloomberg) -- U.S. stocks rallied the most in six years on prospects the government will formulate a ``permanent'' plan to shore up financial markets, while regulators and pension funds took steps to curb bets against banks and brokerages.
As a long term bullion investor headlines such as this make me very nervous. What they are really doing is manipulating markets. As I mentioned yesterday I expect stabilisation in stock markets through the November US elections due to desperate government interventions. This will provide better exit points for any toxic financial stocks you may still own. Whilst continued money printing bail out are incredibly bullish for gold & silver in the medium term, I suspect another takedown in the near term. Technically I'd like to see a retest of the recent lows. This would create a double bottom, a very bullish technical formation. This would be the time to back up the truck.
Another disturbing piece of news last night was the performance of Newmont Mining. This gold stock and often provides an early signal for the gold price movement the following day. Newmont was down over 8% last night. Given it is also triple witching (options, futures & options on futures expiry) I expect major volatility.
I repeat my message from the last few days...... BE PATIENT. Buy gold & silver in quiet times on price pullbacks, never chase the rallies. For now sit back and wait for governments and central banks to give you an early Christmas present, discounted gold & silver bullion.
Posts
0 comments
Post a Comment