This week’s look at gold, silver, the S&P 500, (thus USA Stocks in general) reveals a very likely BEAR TRAP being set for the US equity markets. It appears we have a strong confluence of factors which indicate the US Stock Market will begin a HEAVY DECLINE and quite soon – most like this is the week it all starts to fall apart despite a fresh bunch of opium – or rather optimism – from the usual guru’s on financial TV. When will they learn not to set new lofty “highs” for the stock markets and keep the individual from losing his shirt. On the other hand, the precious metals gold and silver are looking to be nearing the completion of the expected correction from their recent Elliott Wave 1 (minute level) highs.
Silver has lagged gold in the 2016 resurgence of the metals which has sent the gold to silver ratio to well over 80-1. If you know what that means, then opportunity may be knocking*. When silver wants to “catch-up” to gold, it will set the charts “a blazing” as silver is already much more volatile than gold and the catch-up almost for certain WILL occur and possibly send the ratio back into the 20’s-1 (at the least) by the time this new bull phase unwinds intro the future.
The Fibonacci retracement levels for gold and silver which are usually rather deep for a wave 2 (or in this case ” ii “) and while one of the metals has certainly gone deep enough to be typical, the other has not yet even touched the 50% retracement level which. generally speaking. is the typical “minimum” retracement you’d tend to see in a second wave – at whatever the degree.
The next repost or update for gold, silver, the S&P 500 and possibly other stocks will hopefully come near midweek as I want to cover and recap the LONGER term picture for gold, silver and the other markets and stocks. While it may not be a “prudent thing” to own the gold or silver mining stocks, it should be noted that they often will “tip-off” what is about to happen in the marketplace. I may introduce this for gold and or silver in the technical analysis update at midweek, time permitting.
In my opinion, this is the “accumulation” phase where anyone wanting to preserve wealth, can most likely so so at these price levels for both silver and gold.* It is too early to tell yet if we are in a “Wave “B” of Major “2” or if Major “2” has completed. Either way, we have likely seen the lowest gold and silver spot prices for at least 2.5-4 years OR , if we get a signal that this is the “big” Major “3” wave getting under way, hardly anyone alive today can expect to see prices in the future, in their lifetimes, priced under the most recent lows in both spot gold and spot silver. This is especially true when considering spot silver and spot gold in terms of US Dollar purchasing power and prices.
I am open to other stock charts, either internationally or other North America indicies. Just comment below (that is, The Edge of Truth is where I will be monitoring comment – http://TheEdgeOfTruth.com).
So, get ready for an expected wild ride to begin REAL soon in US equities and be on the lookout for some jaws to drop from your favorite or infamous financial TV prognosticating “Perm a-bull”…. – TMJ insurance anyone?
If you are into gold and silver stacking, now may be the best opportunity for either 2-3 or maybe 10-20 years to come – time will tell which leg we are on.*
* – These statements are for informational and entertainment purposes only and are NOT to be taken as financial advice. Under no circumstances are any of my comments, oral or in writing, are to be taken as any sort of financial advice. You are STRONGLY urged to seek your own financial advisor before making ANY financial decisions. I am NOT a professional gold, silver, stock, or trad-able asset person. I represent to company or firm, or hold any opinion on what anyone should be doing with their money. Again, seek your own professional counsel before making any decisions concerning your financial assets.
Blessings!
Rich – Mr. Thrive & Survive
Twitter: @mrthrivesurvive
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