Gold-- Week 22 Moofall Watch (31st May to 6th June 09)

Gold (spot)

(based on 30 year advanced chart)

Yearly

There is not much to say here, apart from the observation that we are still in a very long running bull market since 2002. If we have to look for signs of weakness, Elder ray is bending down a bit and Stoch is almost crossing, bearishly, if only we can see what is happening in that intense minglingn of the two lines there. And needn't I add that RSI is at a high of 84.49.

This reminds me to buy a few more Lotto tickets, if I win, I'd be a bear, ride it all the way down to 500 to start with and 200 eventually. I will be a madbear there, but with it being such a volatile market, I don't want to be involved at all, without winning the lottery, be warned.

Quarterly

This is where interesting things are happening, i.e., the bearish divergence is appearing everywhere, with a high price and waning momentums, across rsi, Momentum, elder ray etc. Someone is holding up the glistening stuff artificially.

We are still hedging ourselves against the end of the world scenario, in terms of a collapsing economy and stock markets and so on. This is creating a duality that we won't let go of gold but we want to buy higher risk assets as well. Actually, gold is probably the world's most toxic and dangerous asset to hold in our pension funds etc.. I wish I could ask them to sell all gold in our portfolios and start investing in the real economy, companies and business and entrepreneurship.

Monthly

The bearish divergence is significant here too, the price is simply held by who knows what forces. We are still in the process of Wave 2 pullback, which is threatening to falsify this 5 impulsive waves down scenario, but RSI is supportive of this scenario, in a downstream moo river. but there might still be a little spike left and a little meandering left yet to touch the upperbank there, while price must be kept the last high near 1033, otherwise Wave 1 wil be falsified.

Come on, please, let me win the lottery this weekend and I will turn into a permabear on gold and donate half of my winning to charity and 1/4 devoted to do something good for the world and 1/4 for love, family, friends, etc.

Weekly

I can't believe the technical analysts are not screaming out bearish divergence all over the world. It had a double top and bounced back and now is shaping up another double top.

The world is waiting for a Trigger event to sell off gold in a massive moofall (waterfall) and that could just be our GB. I think it was his selling of British gold that triggered this whole bull market and how apt it will be for him to trigger the downfall of the glistening stuff.

But despite my bearish fervour, I will never touch gold unless I win the lottery, so be warned and stay away from it.

Good luck.