GOLD BREAKS THE 150 DAY AVERAGE FIRST TIME SINCE JAN 09
Chart courtesy of StockCharts.com
Gold has broke below its 150 day moving average the first time since January of 09. Since that time, gold has tagged this long term moving average 9 times…most to the penny. If it cannot get back above within the next week, I would consider it a major breakdown of consequence. Very simply, the longer a trend lasts, and then breaks, the more the break is of importance. Also of importance, the 200 day moving average is just below at $157. A break below there and we are talking the first bear market in gold since the bear of 08. Silver started its bear back in April off of a climactic move. Keep in mind, the recent top in gold was also a climactic move.
Gary Kaltbaum owns Kaltbaum Capital Management, LLC (“KCM”), an investment adviser registered with the U.S. Securities and Exchange Commission. The opinions expressed herein are those of Mr. Kaltbaum and may not reflect those of KCM. The information offered in this publication is general information that does not take into account the individual circumstances, financial situation or individual needs of an investor. The information herein has been obtained from sources believed to be reliable, but we cannot assure its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Any reference to past performance is not to be implied or construed as a guarantee of future results.
I wouldn’t be surprised if the Wall Street traders are going to deflate the prices of gold and silver from the paper prices, so that they can then buy the real gold and real silver at much lower prices, when the public is scared and begins selling their gold. They are counting on this happening. I would not count it happening, though.
LP that is one interesting thought. I must thank Gary though for calling the 150 day moving average on gold back in August of 2011. i been watching it like a hawk ever since for the break.
When (GLD) broke the 150 day line on 12-13-11 I immediately positioned for battle by wielding weaponry and loading a short position that yes indeed has turned into purchasing some of the best merchandise in the market for me in a while.
Thanks to Mr. Gary Kaultbaum and all the staff at Kaultbaum Management I have adapted the name “shorty” I fully intend to soon be ordering Gary’s Book. This guy knows his stuff!