Hmmm. Maybe ole Turd's silly little lines and doodles have some merit, after all?
Again, I'll keep this brief and catch up in great detail in the podcast. Let's start with a close-up chart of gold so that you can clearly see the breakout which, if it holds and we close near here, is a very positive development along the path we've been projecting:
Here's an updated look at the one-year chart. Note the breakout. However, unless we close well above $1300 and the red line today, there still exists the possibility of falling back and churning through the blue oval. Therefore, watch closely.
Turning to silver...It has recovered back above $20 but it has a lot of work to do and I expect it to wallow and thrash a bit more here. First, it needs to close back above $20.20 and get out of the black support box. However, only once it gets back above $20.60 can we sound the all clear.
Just one other item to note...
Once again "The Bond Bears" are befuddled. Just last week, bonds appeared to be rolling over and all of the talk was again how the bond bear market was going to ruin so many folks. Hmmm. Not so fast, my friend. Remember, higher interest rates cannot and will not be allowed. Why? Higher rates bring about the rapid destruction of The Great Ponzi. It's as simple as that.
So, here we are. The Long Bond is back to 139 and the 10-year note is yielding the lowest rate in 13 months. (http://www.zerohedge.com/news/2014-08-06/10y-yield-tumbles-13-month-lows-gold-jumps-surveying-mornings-carnage) As I type, the 10-year note is at 2.47% and the 30-year Long Bond is at 3.27%. Certainly not the 4% and 5% that nearly every sell-side analyst was predicting back in January...
As I wrap, I see that the Ukraine/Russia stuff continues to heat up. Here are two, recent headlines from ZH:
To that end, last night's Batchelor-Cohen discussion was terrific and I'll work next to get that posted asap.
Have a great and fun day.