In search of intrinsic value

Guido Romero Rank: 124 Followers: 2 Votes: 0 Years Member: 7 Last Update: 31 October 2014, 4:09 Categories: Relative Performance Charts
Gold / Gold Stocks
Currencies

Oct 28/14 - Major currencies appear to be working on a rebound if not a breakout. Upside resistance is however very strong as is US$ lateral support at 84 (charts 420 & 425). Gold repatriation referendum in Switzerland on 30th November. If Swiss people allow the SNB to run roughshod and are defeated, it will signal an ominous turning point in the near term future of the West. Make no mistake! The general malaise felt by Westerners is the driving force behind secessionist and gold repatriation movements. Although most cannot put their finger on what the problem may be, most do realise that the big state, the centralised state, has failed. Only a severe crisis can now halt these movements of awakening. In the absence of some severe crisis or great tragedy, at some point, somewhere, a European region or country will secede and/or someone will successfully repatriate their sovereign gold. These are the best of times and the worst of times.

Oct 15/14 - Sovereign currencies are working on some sort of bounce. All currencies however are under tremendous pressure to breakdown and the Canadian $ first amongst them. The internals of the general market have weakened considerably in the past month lead by the Russel 2000 that has taken a pummelling. Big cap stocks still holding up relatively well very likely due to buybacks and as main targets of black box trading machines.

Sept 20/14 - That was not a good close for the metals. Trailing stops have been hit. Bullion may yet retrace to the 50% Fibo in the 1100 area. Watching.

Sept16/14 - Gaps in the major funds all closed. I am perplexed however. There are still gaps in relative charts compared to major Western currencies. Nonetheless, CEF has put in a clear hammer yesterday. A bounce is a high probability. We will have to observe the action hence forth but it looks generally constructive.

Aug 9/15 - Whilst GDX has closed the gap, GLD is $2.04 and CEF is $0.02 away from doing so. There is a divergence in the EUR/CHF price action... bears watching.The US$ has broke

Less

100 - $SPX since 1980

The S&P is the benchmark I use to illustrate and buttress my argument.

101 - US$ purchasing power versus CPI

105 - 30years US Treasury Bond since 1980

110 - $SPX, the 30yr US TBond and the US Dollar since 1980

120 - $SPX and gold since 1980

125 - Gold since 1980

126 - Gold bullion inflated by the purchasing power of the US$

130 - $SPX valued in terms of gold bullion

135 - The 30yr US Treasury Bond valued in terms of gold bullion

140 - $SPX valued in terms of $XAU the gold mining company share index

Oct 7/13 - This is the power of the Fed. By simultaneously giving trillions to the banks and keeping interest rates artificially low, it can induce corporate re-financing thus boosting the nominal value of the stock market. The direct ramification of this policy is the devastation of purchasing power thus abetting inequality.

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