As we’ve discussed recently, persistent deflationary forces do not augur for a repeat of Japan circa 1990s or the US in the 1930s. Instead, because of the inability of government’s to finance their current and future debt burden (there is a dearth of domestic savings and global capital), deflationary forces ... Read More
chanakya
22
May2010
Much has been written about the so-called “flash crash” that occurred on Thursday, May 6, which saw the Dow Jones Industrial Average lose nearly 1,000 points intraday. But did this sell-off fall under the category of a crash or a panic? The difference between the two events ... Read More
May 22, 2010chanakya
22
May2010
Recently, I had written about how a deflationary impulse in the capital markets would be a catalyst for the gold stocks. This turned out to be accurate as stocks and commodities weakened while treasuries and the US Dollar advanced. Gold and gold stocks also moved higher. Nevermind the comments I ... Read More
May 22, 2010chanakya
16
May2010
Summary
Gold is parabolic and could easily reach 1300, 1370 and 1400 briefly before it turns down significantly, and may even extend its Bull run into the Cardinal Climax of August 2010. However, Gold will break sharply when the parabolic move ends and a break of 1190 ... Read More
May 16, 2010chanakya
15
May2010
Quantum Mechanics in 200 words
Quantum Mechanics was the highly demanded branch of physics in 20th century. The hypothesis proposed by Max Planck (1900) to describe some physical phenomena (black body radiation) made a revolution in physics compatible with Newton Laws discovered two centuries earlier.
In brief the Planck's hypothesis states that ... Read More
May 15, 2010chanakya
12
May2010
There are numerous reasons both fundamental and technical as to why the precious metals complex will surge over the next 18 months. The sector’s surge will be reinforced by the lack of an obvious trend in most other markets. Gold, Silver and the mining stocks will surge while other markets ... Read More
May 12, 2010chanakya
10
May2010
Background
While the notion of using Astrology in the markets seems ludicrous, it has been used successfully by traders long enough to generate interest and studies by some Universities and the Federal Reserve. Their results confirm a Moon effect that can consistently increase returns by about 5% ... Read More
May 10, 2010chanakya
05
May2010
In the wake of continuing global financial turmoil, we hear quite a bit about “safe havens.” Ask someone today and they’d tell you that the US Treasuries are a safe haven and probably Gold also. On a day-to-day basis, certainly the US Dollar and US Treasuries are safe havens. The ... Read More
May 5, 2010chanakya
03
May2010
Watch the potential ES wedge break to the downside next time around.
If it occurs, it would target 1144 ES in May 2010.
Good luck!
May 3, 2010chanakya
28
Apr2010
Since early 2009 we’ve written about the super-bullish long-term cup and handle pattern in Gold. It dates back to 1980 and has a logarithmic target of about $2,100. We noted that previous cup and handle patterns in Gold all reached their logarithmic target1. We expect that this move to $2,100 ... Read More
April 28, 2010chanakya