As most here know I look at market divergences for my clues. All markets have different cycle tendencies and lengths. This causes complex overlapping. Armstrong has his computer models, but I look for key divergences and reversals that relate to gold and silver and my PM stocks.
The EURO and $US have changed dynamics [diverged] since the $US gold low of $1525 on 12/27/11. The EURO bottommed at 1.2870 that day.
Here we are 2 weeks later with gold making a $1625 low today with the EURO low at 1.2670. LOOK CLOSELY! Gold bottomed today $100 HIGHER than 12/27 today while the EURO bottomed 200 tics LOWER than 12/27.
SO MUCH FOR GOLD WEAKNESS IN STEP WITH A SINKING EURO! They wont let Greece die just yet, and gold is smelling the inevidibility of that and the domino potential as world downgrades abound. This, along with war mongering and QE-3 or 4 [depending on what country] implementation, are the fundamentals that should send gold to new highs above $2000 soon as Februry.
And this about AUMN....I suspect the accumulation line is looking rather healthy these days, but PMs are moving up all together as shorts are covering with some magic coordinated signal to do so.
What to look for? Simple...AUMN must take out both the November high [$8.90] and the October high [$9.40] to signal a major long term low occurred at the $6.20 area. Yes, I am encouraged as my family still has over 20,000 shares combined, but realistically, we are still at "ECU $.42" area...that was the 2009 ECU low! AUMN will need to get back above $20 [ECU $1.00] before we could begin to justify the bagholding...and I do expect this within months!
But for this week, AUM looks really good except for the Tjursday/Fridy needed pullback early. Those who held through ECU's transition pre and post AUMN deserve a moon shot. Yes, I sold 2/3 of my ECU slowly into and after the merger....just didnt want to own what I thought would be an $18 stock then. That money bought a bunch more bullion on any 10+% drop in gold and silver and accumulation of SFMI. And would you believe, bought some Apple as a place to park money.
No USA trading Monday, but Canada can green up with my blessings.....pic
