“If there was ever a doubt that gold‘s bull market is forming an eight year low, it’s gone now. The Fed’s action guarantees that gold has much further to rise in the years ahead. So far, gold’s four week intermediate decline we call B has been moderate, but it’ll remain underway if June gold again declines below $953. Gold will stay firm above $880. Keep in mind, gold has been much stronger than most markets over the last several months, which means the other markets are poised to outperform gold for the time being...”
Comment
I still think (and this could be wishful on my part) that gold will go lower than 880 (and under 750). But, as always, the price action dictates my opinion.
Meanwhile, supporting my cautious hopefulness about the stock market, here is Investor’s Business Daily on the often repeated assertion that this is a replay of 1929. IBD suggests that our 1929 has already happened. What we have now is 1938:
The Nasdaq’s price action since the 1990s, like clockwork, closely parallels, tracks, and eerily replicates the Dow Jones Industrials’ wild speculative run-up to its 1929 bubble peak, the ensuing three-year, 88% collapse to the Depression lows in June 1932, followed by the recovery run-up to 1937 and the ensuing sharp correction. Based on historical data, today’s market is likely to be a repeat of 1938 — not 1929.
The only problem with that scenario is 1938 was a year before World War II began. I hope IBD isn’t pushing that parallel too hard.
File IBD’s report as Wall Street boosting the market…