Since August 2011 the S&P 500 has risen more than 700 points while the price of gold has fallen over $700: Click to enlarge At the gold peak in August 2011 the negative correlation between stocks and gold reached an unsustainable extreme (roughly 90% negative correlation depending on the time frame). As crazy as it… Continue Reading

Last night around Midnight New York time Bitcoins transacted at $1242, coincidentally February gold futures were trading at almost the exact same price level: Click to enlarge 1-day Bitcoin chart (Mt. Gox) February Gold Futures (Green oval) Which would you rather own, a bitcoin or an ounce of gold?        

Once an investor favorite, Cameco Corporation (CCJ) fell on hard times following the Fukushima disaster in March 2011. However, now there is ample reason for optimism from both a fundamental and a technical standpoint: Click to enlarge CCJ Daily CCJ Weekly Uranium Supply/Demand Gap ( Cameco Investor Presentation) Fukushima’s most dangerous operation yields first successes… Continue Reading

One of the more timely & relevant blog posts we have read in months comes via Advisor Perspectives: Analyzing Earnings As Of Q3 2013  Goldman Sachs EPS Forecast Chart: Click to enlarge You can see what kind of earnings assumptions are factored into the S&P 500 at the 1750 level ($131 in EPS for 2016!….truly… Continue Reading

Gold volatility, both realized and implied via GLD options, has dropped to the lowest levels since the April crash: Click to enlarge The average true range (Daily ATR-14) and CBOE gold volatility index (GVZ) are at their lowest levels since the April crash as gold flounders near the $1275 level. Major support remains near $1250… Continue Reading

In one of the most significant divergences in recent market history, energy stocks have continued to soar along with the Dow and S&P 500 even as crude oil has plunged: Click to enlarge WTI Crude vs. XOM (Exxon Mobil) vs. XLE (Energy SPDR) Since the late-August Syria crisis West-Texas intermediate crude oil is down well… Continue Reading

Interesting news hit the tape on Friday regarding a potentially massive conventional natural gas reservoir in the lower St. Lawrence area of Quebec – shares of tiny Venture listed Petrolympic Ltd. have jumped as much as 700% on the news and reached levels the stock hasn’t seen since 2009: Click to enlarge Veteran energy investors will… Continue Reading

From Fractal Vibrations: Click to enlarge It is interesting to note that gold has very closely followed its price action from the late 1990s. If this pattern continues to hold true we should expect a major bottom to be put in place by summer 2014. Here is commentary from fractal chartist Patrick Ambrus: “The Gold… Continue Reading

Legendary trader/chartist Peter L. Brandt has compiled a chart history of gold and he has determined that the gold chart is the most reliable chart in the world – check it out: A Chart History of Gold P.S. Copper may have bottomed today…..

Forget tapering, judging from recent comments by key global central bankers there is still no end in sight to the global QE orgy: Fed Chair-nominee Janet Yellen Senate Testimony: “We have made good progress, but we have farther to go to regain the ground lost in the crisis and the recession. Unemployment is down from… Continue Reading

Canadian fertilizer producer Potash Corporation (POT) has been flirting with resistance near $33 for the past couple of months. With an open gap up at $37.49 (from the large July gap down on the Russian potash cartel news), the risk/reward is particularly appealing for longs from current levels: Click to enlarge Risk-averse investors can use… Continue Reading

Wednesday morning I wrote the following: “Another all-time high in the Dow Industrials this morning with non-confirmation from the S&P and Russell. Tomorrow we will get the Twitter IPO hooplah which might very well coincide with another all-time high for the S&P 500, a confluence which will only serve to stir the animal spirits more… Continue Reading

Since its April plunge gold has had an uncanny attraction to a particular price level: Click to enlarge Since the April 15th plunge in gold, the gold price has touched the $1321 level on 35 different trading days. The $1321 level is significant for a number of reasons: It was the April 16th crash low… Continue Reading

If everyone is long equities and thinking the Fed will be dovish and continue to talk back the taper, how can markets continue higher tomorrow after the FOMC announcement? The answer is they can’t, UNLESS the Fed offers the prospect of QE-infinity for longer OR an INCREASE in asset purchases. So unless the Fed surprises… Continue Reading

The forces are strong in this market, and growing stronger by the day. Margin debt is at all-time highs, flows into equity mutual funds & ETFs continue to be robust, retail investor participation in the stock markets is steadily growing (as measured by flows into leveraged bullish ETFs, and almost insatiable retail investor thirst for… Continue Reading