Gold and Silver Prices: Market Says 1 to 2 Years Sideways, Not Up
Michael Noonan: Re 1 – 2 years of potentially moving sideways, we would be happy to be wrong.
In a week of no news relevant to gold and silver, gold slipped under the 1400 level, for some “unknown” reason, while silver just slipped a little. Friday marked the close of the week and month, for charting purposes. A look at the Quarterly, in progress, seemed a good idea, as well.
Almost everyone has an opinion on any given market, but especially for gold, with the exception of financial news networks which never have an opinion on gold, unless it is to point out how poorly it is doing. Opinions, however, do not move markets, only executed trades matter, a topic covered a few weeks ago, [Only Votes Cast In Elections Count, Same For Markets, if you missed it.]
The only opinion that matters is what the market is saying about those who are actually participating, and that shows up as fact when viewed on the charts. Opinion, sentiment, belief, expectation, none lead the market but are more reflective of one’s mindset, and in the end, it is the market that always has the last word. From our perspective, it is better to follow the market’s lead. If you have a consistent game plan, profitable results will follow.
A shorter version of the above is simply, do not fight the tape!
[We just saw that a part of the chart comments was cut off. It pertained to dealing with patterns that consistently repeat in behavior, and they act as a reliable guide for making trade decisions, re first paragraph on chart.]
Stand-out wide range bars tend to capture market behavior for the next several time periods, so for a Quarterly, it can be a few years. In the 2011 wide range bar, gold traded sideways for 6 more quarters, before being “driven” lower. The 2nd Q bar, second from the end, is almost equal in size to the range that formed the high. Using past history of how price responds, it is likely that gold, [and silver], will move sideways for another year or two. This flies in the face of so many current, mostly expert opinions.
As noted on the chart, only some highly unexpected news event could “shock” price out of normal pattern behavior, which is what it would take to get the price of gold and silver to move higher, in line with “expectations” of the PMs community. A collapse of the fiat Federal Reserve Note would be such a catalyst example. There is history for that kind of event, taken from the Federal Reserve’s model, the Weimar Republic banking system from Germany, which ultimately went wildly amok from its infinite printing binge. Still, it took some time for it to unravel, as it is for today’s criminal bankers gone wild.
Given that the New World Order’s central bankers have a stronghold, literally, on the Western banking system, that power will not easily be ceded, and that faction will destroy currencies in the process before ever acknowledging their [historically proven to be] doomed policies are not working…except in transferring the Western world’s wealth into their greedy hands. On that score, things are working beautifully, if you happen to be a part of the NWO.
The two most important bars are April, 5 bars ago, and June, 3 bars ago. Both are wide range bars lower when JPMorgan made its [illegal] naked short selling takedown attempts to suppress that central banker nemesis. While relatively high, volume for June was the lowest of all 2013 months. It is the market’s way of showing us that sellers were less in number. Even though June’s close was weak, there was no further follow through to the downside. In fact, July and August just erased the central bank effort from June.