Renowned cycles analyst Martin Armstrong has issued a warning that February’s stunning rally in gold is merely the prelude to the coming chaos…
Armstrong believes gold is poised to rise further through $1300:
Gold has blown through the daily channel resistance so there is a gap on our reversals between 1209 and 1309. Gold should now press higher to fill that gap. The low came on the first benchmark right on target at 1045 $1 from our number at 1044 and this was 51.6 months from the 2011 high. The year-end closing ABOVE 1044 warned gold was “not as weak as it may appear”. The top of the channel on the Monthly level where the longer-term trend is really defined stand at the 1411.64 level. Gold would need to exceed that level and then find support on the top of that channel to say it is ready for prime time.
All of this set the stage to allow gold to rally strongly as the Dow also hit a 13 year high with closing lower in 2015 than 2014. The markets are talking to us, yelling if you will, that a correction was in the wind on a global basis but that the culmination of the trend would NOT be 2017, but pushed off into 2020 with 2017 looking like the start of the trend where confidence collapses in government.
Eventually, we need an alignment to set the stage for what may be the unwinding of western civilization as the way governments have been managed collapse before our eyes.
Armstrong warns that the cycle that is beginning will see the Free Market finally put a stop to endless gov’t debt spending, and appears to be the start of the trend where confidence COLLAPSES in government:
Gold will rise because the way governments are structured with endless debts will come to an end. That is the “rise” in interest rates that will unfold as the FREE MARKET stops buying their paper.
February was the Panic Cycle. It appears to be on target. The Monthly Bullish stands up at 1362. That is what we need to elect to suggest a change in trend becomes possible. Otherwise, be cautious. We are looking at all markets pushing to their extremes. This is the prelude to the chaos coming in 2017.