The Bubble in Oil and Gold
One area of the market that
rarely pulls back nowadays is gold.
Unprecedented fiscal and monetary stimulus from governments worldwide has fueled inflation concerns and renewed investor interest in gold. The hysteria has driven demand, and the price of the metal, to higher highs.
The price of the precious metal has risen some 300% since 2002, and it has outperformed nearly every investment class over that period. This year gold is up over 20%, and once again outperforming most of the competition. Has gold entered a bubble, and if so, how much higher could it go.
Conveniently, oil suffered a similar bubbly trend just a few months ago in 2008. The following is an analysis of oil's bubble, and a theory as to where gold is in its bubble evolution. Readers of this letter may obtain this report and a free trial by clicking here.
The market pulled back again today. Volume was good and the sellers came out with vengeance. Additionally, the bears broke their first support level at 1192. The big test comes at 1155, which may be touched sooner than most bulls had planned.
Finally, our short positions we took over the past few days paid-off today. The bears gathered momentum and put in a string of negative closes. While there are many good clear signs for a top, I am reluctant to declare the bulls run over. Certainly in the near term, the trend is not bullish, but today was only the first breach of a support level in two months.
We did add to our short positions again today. Although outside short term discussions, I am still a "buy the dip" advocate.
Watch List
The TradeMaster Daily Stock Alerts watch list was revisited and took to a bearish turn. For a full list of our trades and a video of our current watch list CLICK.
Unprecedented fiscal and monetary stimulus from governments worldwide has fueled inflation concerns and renewed investor interest in gold. The hysteria has driven demand, and the price of the metal, to higher highs.
The price of the precious metal has risen some 300% since 2002, and it has outperformed nearly every investment class over that period. This year gold is up over 20%, and once again outperforming most of the competition. Has gold entered a bubble, and if so, how much higher could it go.
Conveniently, oil suffered a similar bubbly trend just a few months ago in 2008. The following is an analysis of oil's bubble, and a theory as to where gold is in its bubble evolution. Readers of this letter may obtain this report and a free trial by clicking here.
The market pulled back again today. Volume was good and the sellers came out with vengeance. Additionally, the bears broke their first support level at 1192. The big test comes at 1155, which may be touched sooner than most bulls had planned.
Finally, our short positions we took over the past few days paid-off today. The bears gathered momentum and put in a string of negative closes. While there are many good clear signs for a top, I am reluctant to declare the bulls run over. Certainly in the near term, the trend is not bullish, but today was only the first breach of a support level in two months.
We did add to our short positions again today. Although outside short term discussions, I am still a "buy the dip" advocate.
Watch List
The TradeMaster Daily Stock Alerts watch list was revisited and took to a bearish turn. For a full list of our trades and a video of our current watch list CLICK.
