Will gold & silver be spared from the stock market crash this time? Here’s one trader’s take on what could happen very, very soon…
by Glenn West of WestPacific Trend Trading
It all hinges on the Yen and the Dollar: it always has, and it has always been about the value of a currency and whether there is inflation or deflation.
I say we are still in the final inflationary blow-off top- then the final deflationary collapse which should start later this year.
For now Gold and Silver may stage a technical rally as the markets selloff and panic sets in. People are losing faith in the markets.
But do not be fooled once the markets top because I expect gold and silver to top with them, later this year, and then literally everything gets wasted into 2020 in a massive collapse – the stock market, gold, you name it.
Coming out of this collapse, the stock market will never recover. Gold, silver, and the commodities, that is, real assets, will begin a massive bull market that will run through the economy for two decades into 2039.
Last week there was a lot of talk about Campbell’s Soup. So American!
They have a debt ratio of 200, meaning that they have no shareholder equity and thye’re broke. That’s $3.9 Billion in debt to $206 Million in cash, or $.69 a share.
Over the next 2 decades they will have to raise prices insanely to stay afloat, and I see this in so many companies in America. Rest assured – this will get ugly. Their costs are going to soar for things like raw materials, transportation and logistics, debt finance, and pretty much all prices are going to skyrocket across the board.
Lets take the time to look at a few drivers to this market and cut out all the talk: The truth lies within the structure of every chart.
It has been awhile since I have posted on SilverDoctors. They are the best the articles in helping us all to understand the ongoing situation, and let me say thank you to The Doc and his Team, as well as all of those that take the time to contribute to this site.
Let me add that I expect a multi-thousand point drop in the DOW after this final blow-off top, starting next week, but that is for another article.
Lets look at the charts and talk some gold & slver.
First up: The Japanese Yen
- The Yen is completing it final thrust into a low, and once complete, it should blast off into perhaps early December to 112 area.
- Notice how Silver is priced well below Gold based in Yen: This is this reason it will have the more powerful rally of the two. I expect silver to double in price.
- You can see in the Chande and the Wms% that we need to finish those channel lows ahead of the rally but we are not there just yet.
Here’s the Nikkei to Gold
- What stands out here is the Nikkei is going to collapse, and that will drive the prices of Silver and Gold higher.
- Key Moving Averages have rolled and are setting up for a better rally then the 2016 pop in Gold and Silver.
- It’s all very close to rolling over now.
Onto the USD/Gold
- Here is the fuel for this rally. Just look at all those key Moving Averages rolling over.
- Here the thing – GOLD at $1266.90 and below that $1243/$1241 has to hold, and if it doesn’t, the forget the long gold trade. In the back of my mind I am seeing this and it truly bothers me.
A technical indicator called 5th Wave Failure is keeping me up at night:
- This has been bugging me for months now; notice how perfect this wave structure up is; but then just above the wave 3, we failed, and to me it truly looks like a 5th wave failure.
- If it is a 5th wave failure, we go to $1170 first before we can stage any rally.
- Don’t be too early on this long Gold and/or Silver trade.
I will send the Doc an update in a week, so be on the look out for it,
Westpacific Trend Trading [email protected]
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