What Happens To Gold And Silver Next? Look Out Below?

From my viewpoint as a trader, that was a very swift reversal, and its clear, no amount of QE is going to help gold out.

I think depending on what happens tomorrow, chances are high we remain in a range, and if that happens and a lower leg doesn't happen again, then at best, gold and silver are broken.

This will take time to play out, so take it day by day, level by level. Dont get ahead of yourself and guess, just follow the price action.

I appreciate your comments Dougie. However, the pattern that I am referring has nothing to do based on what the Fed says but rather price action.

Reversals are typical, and are common in an asset that is locked in a range. There is no real conviction for gold and silver base on this price range. This price is typical and I have seen it played out before in many other assets that were broken, whether commodity, stock, currency or bond.

This has nothing to do with QE or the stock market going higher etc. In fact, most commodities are broken, very few, in fact I can think of only one commodity that is near 52 highs, all others are either at yearly lows or just range bound.

So again, I am not stating my opinion, I am stating facts based on price action which indicate a broken asset. Furthermore, I don't get paid by my opinion but rather by what price says is happening or could happen.

BTW I also disagree with your with your incorrect statement that the markets are rising at ridiculous rates.

One cannot decide that on their own. By whos metrics are you saying that? IF you are not an institutional fund you cannot state that as fact. Markets are following a uptrend because institutions are buying based on future projects. It has nothing to do with QE. If that was the case then all stocks would be rising in the market. That is not the case.

Therefore, blanket statements cannot be used such as yours that "markets are rising at ridiculous rates.

BTW- these markets will continue to move higher as tapering proceeds. The markets dont need QE. That is also another incorrect assumption thats made.

While I realize many have a hard time understanding that, in time you will see how the market is ready to accept no QE. It was already starting to do so earlier in the year.

Hmmm It's amazing how fast humans forget. We as the only sentient beings we know, congratulate ourselves on our superiority. And we can't even remember the giant market and housing bubbles that nearly brought another great depression. Well it's blowing up again and QE has it's lips on it. I suppose everyone will be surprised when it bursts. It's depressing how dumb most people are.

SO what I am reading is every time the market is at a high it is a bubble. Interesting but no compelling.

Thats true, and its very true that we dont know what exactly would happen without doing it. On the other hand, the markets dont like change or things that rock the boat. Any discussion that leads to those things generally results in a pull back especially with people being more cautious after 08.




I think its safe to say thered be a pull back, maybe even a large drop the question is would it stay there or climb back up creating a good buying opportunity.

Its true the rise isn't reflected in job creation, but it doesn't necessarily have to be. Companies just flat out really arent hiring a lot or expanding compared to past rates and are sitting on more money with the uncertainty of future actions and vilification of them thats been created. As long as the profits are there stock rises arent necessarily a bubble.

On one hand you can say that they arent fully maximizing growth potential, but on the other hand you can also argue they may be undervalued since if they decide the time is right to expand you could see more growth and theyre in a better position money wise to do so.

Its also kind of a self fulfilling action in the sense that when the price rises everyone wants in on it causing the price to rise even further. The reverse is usually true too where things drop like a rock because of a big dip until some big money steps in and says alright enough this is a good buy being undervalued now.

BTW, you cannot paint the stock market with a broad brush. Period. There are many stocks rising that dont CARE about job growth. You do not need job creation for all stocks to rise. PERIOD. This is fact and happens all the time.

It is a myth that stocks wont and dont rise because job numbers are low. Again you cannot just say that stocks will drop because theres going to be no QE.

There are plenty of stocks that rise and they have done it with no QE. period. It is a myth and incorrect to make assumptions when one has not closed examined by stocks rise.

The final point I will address on stock is this and I wont talk anymore about the stock market because this is not the thread. However, anyone who has been a naysayer about the stock market is either short, wrong or has missed out on a HUGE run in stocks for foolishly fighting the trend. Trends are a powerful thing and they all run out. Right now the US stock markets and European stock markets are on powerful uptrends and they will run longer than anyone can even project.

In fact, its GREAT to see such pessimism that abounds. Its great that people talk about "bubble this and bubble that". Thats great because those are the people you fade and ignore and with their pessimism, the markets will trump them and leave them in the dust.

So again, why put your money into broken assets like gold and silver when you can be getting a return and enjoying a uptrend such as is evident in world stock markets.