Time when the prediction was made that Google could deep below 250 in a severe Bear market valuation passed in our memory as so distant and happy that it is almost not worth mentioning. But the call was done and was right on the money.
Other observations could come into life with recent developments. Announcement about the new Head of Treasury fired the rally in the market. Yesterday all hope was lost: VIX made break up, DOW has violated Bearish Flag downwards and US Dollar almost broke up to upside. Today was the different story and first Gold start to rally and overtake very important resistances on the way to 800. HUI, GDX and all Goldies have followed in unison with gains up to 31% in Barrick Gold ABX. Is it a turning point? Very much could be: in DOW we have a Bullish Engulfing Reversal candle pattern, last capitulation could exhaust the market pretty much and they should do something over the week end to fix the situation with CITIGroup C. The most important is that gold rallied even with still rising US Dollar and maybe our endless battle with gravity is over. Goldies in HUI and GDX have formed very strong reversal and never retest the lows in recent sell off it could be very strong positive divergence from the general market which is in play again. So we can forget charting miserable destiny of financials in the DOW and concentrate back on our Bull in Gold, Silver and Commodities ones investors will come back to their common senses.
With the new guy in charge in Treasury we can expect understanding of the currency question and that the strong dollar will kill economy in Deflation spiral. Weak US Dollar is the medicine from this meltdown.
Shorts will be served Fried next week particularly in Gold and Silver and their producers Shares.
SSRI, SLW, AUY, GDX, SST.v, TNR.v, CZX.v, OK.v, BVG.v
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