Staring at things does not always clarify them. After 3 years of abuse from malware etc, yadda, yadda, yadda, my main computer took a couple days off at the Staples Spa for its rejuvenation. Thus in the intervening time, while "Things" did not change, but perhaps the way I looked at them did. After sorting three years of Peak Picks, I found myself looking at a formation, suspiciously similar to several I recalled from collating my old copies of Peak Picks.
Lets leave aside all the things conjectured to move Gold one way or the other, and consider the Federal Reserve Open Market Committee is meeting today and tomorrow, the first since JUNE, and leave that in the forefront of our minds as we view the chart below.
So click on this as you need to enlarge, and consider
WHO IS ON FIRST ? in its best metaphorical form.
I think even in the most politest and lilly-white of social gatherings, suggesting that GDX and Gold to a lesser extent, have undergone a BLOODY SLAUGHTER
would be not at all shocking, even with ladies present.
WHY seems nothing I would guess at because this action I speak about, is completely counter intuitive, cyclically irrational, and not reasonable from any viewpoint I can discern. You can hear the GoldBugz gnashing their teeth about this and other real and imagined injustices, but yet we are equidistant between the Lows of 2009 and The Straits of Hell. As much as the currents and rip tides of the larger intervenors and market forces have tried to force GDX and Gold back onto the rocks of the previous cycle lows it has NOT happened, but rather each time, demand for both comes back so strong as to blunt, block and break the assaults however many times they come.
I'll go back to two serious, pivotal events on the Russian Front when the Nazi's had their plans blunted and broken. Stalingrad, and Kursk. Metaphorically I think they apply.
Me? I am lining up my Same Old Usual Suspects of the PM Complex for inclusion in the next move.
Take a subscription and see where we are, and where we could go..........., and if I have any coupons left, I will throw in a copy of Gary's new book, "GOLD VALUES and GOLD PRICES" even though that promotion is over.
Meanwhile, make sure you got some dry powder........