of the big four (dow, bonds, usd, gold)

"Sovereign Debt and Major Markets"
Stewart Thomson
email: [email protected]
Apr 20, 2010

http://www.321gold.com/editorials/thomson_s/thomson_s_042010.html

1. The battle is on. By now most in the gold community are aware of Jim Sinclairs monster prediction made on the weekend, that Gold goes stratospheric within days. The term within days is a period less than two weeks, by definition, or it would be within weeks. By putting his gold neck on big call chopping block, Jim is taking on multiple opponents, including a technically overbought situation on the daily chart, a stock market that is massively overbought on the daily chart, and becoming so on the vastly more important weekly chart, and a timeframe when gold seasonally begins to peak, not start a parabolic bull move!

2. While I only bet money responding to price, I would bet that Jim wins, if I was forced to make a bet. As of this morning, King Price is voting the same way. Gold has surged $17 from the $1125 Goldman Sacked lows, to $1142. Some of you are already back to ringing the cash register again!

24. Of the big four (Dow, Bonds, USD, Gold) the Gold Weekly Chart Apr 20 is the only one that offers a decent risk to reward set up. The technical indicators are midships and verging on buy signals, and price itself sits above the massive head and shoulders continuation pattern, and timewise could be near the end of a consolidation following that breakout. Price could decline further, but the fact is the risk to reward ratio is skewed in favour of higher gold prices! If you had to place money on weakness into a major market today in size, only one market would get any of my money, and hopefully yours, and that is: Gold!