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Stock Market Trouble & Gold $1,880

Posted by Richard Russell - Dow Theory Letters

on Friday, 19 August 2011 13:32

Gold — Not much change. Gold is following its 150-day MA as seen on the chart below. Currently gold is rather far above its 150-day MA, which probably means that gold should stall and consolidate for a while. Richard Russell 08/18/2011

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—-previous comment 08/02/2011

Stock Market Trouble & Gold $1,880

As the gold price doggedly trades above $1,600, the Godfather of stock market newsletter writers, Richard Russell, recently wrote that he’s targeting $1,880 for the king of currencies, gold.

“There isn’t much clear and defined in this market except for gold,” stated Russell, the author of The Dow Theory Letters.   “How much of this is based on the Washington shenanigans I don’t know, but once the debt boost is solved the test will be whether gold tends to hold its gains.  By the way, the P&F [Point & Figure] chart shows a price objective of 1,880.”

Gold
…read more HERE

Mining Shares – My line in the sand has held as in this sell-off the shares are not anywhere near the selling pressure they saw last time around. I’m cautiously optimistic that despite another shot in their face, mining and exploration shares are finally in a place where they can truly begin to prosper from the great gains in the physical metals. The fact that most people can no longer accept that, are disgusted and have already thrown in the towel, adds to my confidence.

….read more on the Stock Market HERE

The Federal Reserve Worries:

Unfortunately the globalization process has linked most of the world.  This AM the Wall Street Journal notes another problem. European banks hold U.S. dollars – lots of U.S. dollars.  The fed is worried and domestic banks are under pressure this AM.

Gold and Silver have emerged in the last 12 months as the dominant asset group.

Last week was one of the most violent in market history and traders are bracing themselves for more.

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