Gold Breaks Bearish Trendline; Key Target for Silver at $37
The following is an excerpt from Richard Russell's Dow Theory Letters
"We are witnessing the death of abundance for a long time." PIMCO, Bill Gross
The great GOP debate continues with Gingrich finally dropping behind the Mitt.
Meanwhile, the stock market is caught in the puzzle of will Europe emerge whole from its current troubles, or will the Eurozone fall apart like a deflating balloon? That plus the following question: Does the US face another four years of a socialist president who seeks to solve all problems by either taxing "the rich" or throwing trillions of man-made dollars at the screw-up in question?
The poor man in the street is facing questions and doubts. Will he be at the same job a year from now? And if he gets a pink slip will he be able to find another job?
If the year 2012 has a title, the title should be "uncertainty."
Nobody's asking, "What happens if there's a recession in the next year?" Or "What if unemployment is 9% or more at presidential election time?" If either of the above occur, the GOP could run a donkey, and it would be our next president. Obama must have a good economy to win.
What about gold? Remember gold? Don't worry about the yellow metal. Over the last week gold has broken out above a bearish trendline and the direction is now UP. The next task -- for gold to trade in the 1800s.
Below, silver in a down-sloping rectangle. A hugely important upside breakout would arrive if silver could hit 37.
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