Sunday, January 16, 2011

Stiff Neck Once A Month

"The Age of Gold" or "the gold was" anonymous visitor


The bull market in Gold is entering its tenth consecutive year of a long term uptrend. In the entire history of the US stock market, 1885 – 2011, there has only been one long term uptrend that was longer. The thirteen year, 1987 – 2000, long term uptrend that led to the dotcom bubble in the late 1990′s. For many, this type of bull market in Gold will be a once in a lifetime event
As you can observe from the weekly chart this bull market is expanding in complexity. The 1987-2000 13 year bull market in equities was even more complex. Primary wave I is quite simple, with an extended Major wave 3. Primary wave III was a bit more complex, with both Major waves 3 and 5 extending. Primary wave V is already more complex. Not only is Major wave 3 extending, but Intermediate wave five of Major 3 is also extending. This is exactly how markets prepare to go parabolic. The waves continue to subdivide, with minor corrections along the way, forcing buyers in at higher and higher prices. Naturally, there will be a sizeable correction at some point, when buying subsides, during Major wave 4. Then Gold will enter the parabolic Major wave 5. This will likely coincide with a worldwide economic event. The most likely culprit will be the continuously rising inflationary Pressures in the fast growing emerging economies.

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