If after the cycle has peaked the European debt situation worsens, investors will likely move very quickly back into the safe haven investment vehicles, which includes gold. Following the peak of the previous 6-year cycle in 2005 gold and the gold ETFs experienced a strong rally in the last couple of months that year and into the following year (see chart below).
http://www.financialsense.com/contributors/clif-droke/2011/09/19/another-round-of-consumer-price-increases-on-the-way
I calculated via GANN that GLD will be a buy when it touches 170....with a target at 200.
ReplyDeleteShadow7 - keep us informed.
ReplyDeleteJust a few notes:
ReplyDeleteKeystone shows charts predicting APPL will fall. Might trade sideways initially, but overall should trade lower. I know I need to buy some QID at some point.
Phil Davis was set up some bullish plays yesterday & seems bullish for now. He believes POMO is coming.
He also advised shorting GOLD via GLD put options, believing it won't hit $2000 by Thanksgiving. Turd & TraderDan also wrote Gold could trade lower for awhile. So, there is some agreement that Gold could go lower.