Gold Completing Huge Triangle Base- Next Upward Run Will be MASSIVE!

m3Submitted by Morris Hubbartt:

Fundamentally, the US dollar is at great risk. Even if politicians make headway in spending cuts in the coming months, it won’t stop the debt from growing.   According to CNS news, about 11,000 people sign up for the Supplemental Assistance Nutrition Program (food stamps) every day. As the United States heads back into recession, maintaining a social net will be priority number one.

So, leaders can attempt to make progress, but the debt is now over $16.5 trillion.  Unfunded liabilities are more than seven times that amount.  A debased currency or much higher interest rates are the government’s ultimate choice.

The fundamental issues that are negative for the dollar are also very bullish for gold.  With the long-term trend of gold being up, this enormous symmetrical triangle is likely to breakout to the upside.
A symmetrical triangle is usually formed during a consolidation period. In the case of gold, the consolidation has gone on now for nearly a year and half. The larger the base, the greater the rise out of the bull market consolidation pattern. 

 

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US Dollar Technical Breakdown Chart

 

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  • Fundamentally, the US dollar is at great risk. Even if politicians make headway in spending cuts in the coming months, it won’t stop the debt from growing.

 

  • According to CNS news, about 11,000 people sign up for the Supplemental Assistance Nutrition Program (food stamps) every day. As the United States heads back into recession, maintaining a social net will be priority number one.

 

  • So, leaders can attempt to make progress, but the debt is now over $16.5 trillion.  Unfunded liabilities are more than seven times that amount.  A debased currency or much higher interest rates are the government’s ultimate choice.

 

  • This weekly chart of the US dollar looks very weak. The struggle with the 80.50 area is ongoing.

 

Dow Versus Gold Chart

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  • On this key weekly chart, the RSI oscillator is now at the higest point in 10 years. Yet when looking at the price action of the Dow against gold, the Dow has barely bounced.
  • This chart is a signpost for investors; once the stockmarket starts correcting, a major gold rally should occur across the entire precious metals sector. Compared to gold, the Dow is vastly overvalued.

 

Gold Triangle Action Chart

 

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  • The fundamental issues that are negative for the dollar are also very bullish for gold.

 

  • With the long-term trend of gold being up, this enormous symmetrical triangle is likely to breakout to the upside.

 

  • A symmetrical triangle is usually formed during a consolidation period. In the case of gold, the consolidation has gone on now for nearly a year and half. The larger the base, the greater the rise out of the bull market consolidation pattern.

 

Gold Public Opinion Chart

 

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  • Strong evidence indicating that the gold bull market is ready to start a new leg higher, is public opinion.

 

  • I’ve highlighted the latest data from www.sentimentrader.com, released this week.  The chart shows that public investors are carrying very few long positions.  It adds weight to my view that a bullish breakout from the weekly chart triangle will occur.

 

  • Commercial traders appear to be engaged in a substantial amount of gold accumulation. The key COT data is updated after Friday’s market close.

 

  • The public’s action in the gold market is pretty much the exact opposite of commerical buyers,  and that is good news for gold investors.  I will do a free “COT Report Video Update” for web readers on Friday evening, Feb 15, 2013.  Send me an email to alerts@superforcesignals.com, and I’ll send it to you.

 

Gold Stocks (GDX) Reset Chart

 

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  • Compared to gold, gold stocks are now nearly at break-even, over the life of the bull market. The latest sell-off has literally put most gold stocks back at “ground zero”.

 

  • As the bull resumes I believe gold stocks will lead all world markets higher. That may be hard to believe, but the “reset” in this asset class puts gold stocks in a position to be a strong performer for years to come, even stronger than gold itself.

 

GDX Sentiment Chart

 

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  • In the chart below I have highlighted five times in recent market history, dating back to 2007, when sentiment was very negative, including the current market.

 

  • Without exception, if investors held positions and bought more, their returns were quite impressive.  I am adding longs now, preparing for higher prices. When everyone else is out of a market that is the time to be in it.

 

  • Note the position of the slow stokes oscillator at the bottom of the chart.  It’s dramatically oversold, like it was at the other points of “sentiment capitulation”.

 

GDXJ Green Lights Chart

 

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  • GDXJ is now approaching major support. Volume patterns continue to soften, as price moves lower. The bottom Bollinger band is not broken. The narrowing bands highlighted in red did warn of the current downside volatility.
  • Don’t go “all in”, but some buying makes sense at these levels.  Note the 3 buy signals highlighted in green.

 

Silver Tactics Chart

 

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  • Technically, I’d like you to make note of the 2 topping tail candles formation on this chart.  The first one was overwhelmed by momentum buyers.  The second one came during a trading market, rather than a trending one, so it carried more “technical weight”.

 

  • Also, please note the bullish hammer candles.  When they occur, substantial price advances tend to follow, but there is a substantial lag period before the move gets underway.  That’s the situation in play now.

 

  • Silver is the only metal that has been on my sell list recently. Prices are coming down, and I may issue a fresh buy signal for traders today!

 

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Comments

  1. Always pleased to read more hope-ium. Especially after a day like yesterday when  so many were able to add to their positions.
    ;^))

  2. Possible upcoming Bank Holiday scenario?  Another interesting video to watch:
    http://sgtreport.com/2013/02/cyber-false-flag-financial-attack-confirmed-for-2013/

  3.  
    Don’t shoot me but I think mentally one should prepare for $1400 gold.    The Mayan calander might be off a bit  – There is some strong negative energy.  Remember there can be a large groups of criminals that are LONG gold,oil, etc. using money that isnt theirs.  They may be getting taken out now.
    Try not to get hit by a meteor and find some productive work to do now.   Focus on other things around you imo.
    good luck

    • SHOOT THE MESSENGER!!!  Get a rope, boys!  String him up!!!  And not by the neck!   lol
       
      Hey, just kidding.  Could gold go to $1400?  Sure, anything is possible.  I am certain, however, that IF it did (BIG IF there), it would be because it was manipulated there for a reason and that it would not stay there for long.  Like anything else, dollar cost average into a position.  I just bought 5 oz. of gold @ $1607 + premium.  If it drops to $1550, I will buy another 5-oz.  and so on… or usw, as our German friends would say.  :-)
       
      Speaking of our German friends… any additional info on their gold recovery project?  Seems as if it is stuck in NY and can’t get loose.  This is a PERFECT example of why one HOLDS their phyzz, although holding it in a secure Swiss vault might work.  Better there than here in case of another EO 6102 redux… and Obama is VERY fond of such things.  Whatever is going on behind the scenes here in the US and in Germany, it is interesting that Germany and other nations are looking to bring home their gold and probably for very good reasons.  

  4. Phillip Streible-Gold will not break 1650 and silver will not go below 30.   OOPS!!!!!!!!!!!!
    http://www.silverdoctors.com/rjos-phillip-streible-support-at-1650-30-will-hold-for-gold-silver/
     
    Greg Mannarino- “I am literally doubling down on gold and silver.”  November 30,2012
    http://www.silverdoctors.com/greg-mannarino-time-to-double-down-on-gold-silver/
    November 30 2012
    Gold-1726
    Silver-34.26
     
    Feb. 16 2013
    Gold-1610
    Silver-29.80
    Since that call, Greg “double down” Mannarino has lost 14.88% on gold and 13% on silver.  OOPS!!!!!!!!!!!
     
    What does Phillip and Greg have in common?  Both believe in that witchcraft call technical analysis.  It simply doesn’t work in this environment.  I take nothing from these guys that keep calling bottoms and tops for the metals. 
     
     

    • Amen brother. I cannot for the life of me understand why these dudes continue to put so much faith into technical analysis and “charting” in openly manipulated markets such as gold and silver. I have nothing against Mannarino or Streible, in fact I usually watch their videos when I come across them I just don’t put very much faith into them. 

    • Didn’t Mannarino get screwed big-time the last time he talked about a “double down”?  I don’t follow the guy and usually skip his videos but it seemed to me that he did. Oh, well.   He seems like a nice young man but I don;t really think that listening to his advice on investing is all that beneficial.  I tend to listen more closely to those who know more than I do about such things… names like Kyle Bass, Wilbur Ross, and Peter Lynch come to mind.

    • I would say that TA does work, but not in favor of the bulls, since the “bears” have the funding power to paint the charts in any way they like in the short term and get the momentum traders / hedge fund hyenas to do the rest. There is no denying that breaking certain levels makes the herd act. If TA did not “work” to kill sentiment we would have had a lot higher prices already. Still, I am hopeful since sentiment is so terribly low right now, but we also need to see the commercials start covering their net shorts in the COT before the direction will turn.

  5. I Predict, I Predict, I Predict, A Rise In The PM Metals,
     
     
     
     
     
    But Don’t Blame Me If It Goes Down, The Wicked Witch Did It.

  6. Ever hear of Better Trades?  They teach this BS called technical analysis.  They got busted by the SEC for fraud.  The founder Freddie Rick tried to call his company a educational learning center instead of trading.  This is after a flood of lawsuits and complaints.   They need you to buy their newsletters, subscriptions, books, and programs.  They simply gain your trust and go after people who are naive or new to the market.  They usually never talk about their bad trades but only talk about how it’s so easy to make money.  That is why I bash Greg “double down” Mannarino.  He is a perfect type of guy to go into this garbage.  I am speaking from personal experience with Better Trades.  A good friend of mine works for Better Trades.  He is a good guy but is completely a idiot when it comes to understanding anything about how the markets run.  He doesn’t care if the market goes up, down, or sideways.  As a technical analysis, he can spot the future movements with charting.  I just get so sick of this.  Not to get to personal but he has a horrible track record of trading.  A blind monkey would have better results compared to him.  If this strategy is so bullet proof, then why are they consistently wrong?


    • Because they are 100% oriented towards selling and getting a commission?  Results?  We don’t need no steenking results!  lol
       

  7. Has anyone wondered why Soros dumped his gold yesterday?  
    My husband says it is because he hates conservatives and knows they are more apt to own metals.
    Could his motives be more sinister?

    • Soros didn’t dump his gold.   He dumped GLD which is a paper promise that says you own an interest in a pile of gold the bankers are keeping safe for GLD ticket holders.   They won’t be as happy as when little Charlie opens his chocolate bar and finds his Golden Ticket.    BTW, trust me Soros owns REAL gold and a lot of it.    Soros might know a deflation scare is around the corner and a market correction in assets is forthcoming so he wanted to free up some liquidity.    I wouldn’t worry about Soros.   He’s just another petty gangster in the financial criminal cartel that runs the govt.  

    • Nice to hear that gangsters also make poor bets now and then. Did he not enter somewhere in the 1700 (gold) level?

  8. Thanks Slvrizgold-I appreciate your information.

  9. I wish Doc would put up articles that show more balance.  All articles are bullish.  TA doesn’t work.  All the bulls have been wrong.  Just for old times sake here is a URL to one of David Morgans video’s where he called for 60 dollar silver last year early on. 


    David admits he was wrong.  How could he not?  I am sure he is a nice guy but I wouldn’t pay him for his opinion.  Anyway, silver is going to go up on its time.  Not on some guru’s time table.  They are guessers thats all.  And this guy’s article.  He’s a permabull.  I have never read a Morris Hubbart article that wasn’t bullish.  Eventually he will be right. 

    • That’s OK that guys like Morgan are guessing.  That is what we are all doing.  The trick is, if one is VERY familiar with something, they can make educated guesses.  Not that this is a guarantee or anything but it can up the odds some.  The thing about these guesses is that none of us knows what the full kit is for TPTB.  Without knowing that, we don’t know how long they can sustain their house of cards.  If gravity was the only force operating, it would have collapsed YEARS ago.  The fact that it has not is proof that they have a lot of financial muscle at work… and we do not know how much.
       
      Personally, I do not care.  I buy silver and more recently gold because **I** think that it is a good idea to have some.  If paper turns to crapola, I still have something that is valuable.  Yeah, I heard that snicker from the 4th row out there… something about paper not needing to turn since it already IS crapola.  OK, that’s a valid point.  Another valid point is this:  fiat has value because other people WILL give us stuff for it.  And it will continue to have value until they do not.  Hell, they will even give us silver and gold for it!  Now, how messed up is that?  I dunno but I AM thankful!  lol
       

    • As long as everybody is aware that the guru’s are just guessing than all is well.  In my mind it is better for the guru to just admit that he is just making educated guesses.  At least now, Morgan does say that.  He has partially learned his lesson which is good.  Now he is saying that silver will end 2013 at around 40 per oz with several try’s at 48.  But, he says he could be wrong.  I will give him credit for saying that.

  10. paper metals and paper charts, neither are worth crap…

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