Timing & trends
In our last editorial we presented the bulletproof evidence that the gold stocks had put in a major bottom. We included a historical chart that was supplemented by a major reversal at a Fibonacci strong target and on record weekly volume. At the end of that piece we noted that the sector could correct before it would accelerate to the upside. Looking at historical rallies from major bottoms we noticed that there tends to be a consolidation or correction around the 50-day moving average. The sector is two weeks into that correction. Don’t worry bulls, this is exactly what happens following the initial rebound.
The chart below shows the progression of gold stock recoveries in comparable periods (1970, 1976, 2000, 2008 and 2013). The current recovery is in black. Note that each recovery didn’t truly accelerate until after the middle of August. (That is using the current time scale). Thus, don’t be impatient. It could be a few more weeks before the sector begins its next leg higher.

While it may take a few weeks for the next impulsive advance to begin, that doesn’t mean one should wait to participate. Gold stocks have declined for six consecutive days and are nearing what should be strong support at GDX $25. Take a look at the chart below.

As far as Gold, its correction began when it reached $1350, which was formerly support. Gold is facing some trendline resistance as well as lateral resistance at $1350. If and when it breaks $1350 it will have very little resistance on the way to $1500. Gold should continue to consolidate for several more weeks. The big move will occur after it breaks $1350.

In our last piece we concluded:
Those who missed the initial pop could use the correction or consolidation to capitalize on the next and much larger leg higher. The bottom line is if we do see a correction or consolidation, don’t let it frighten you or cause you to question the major bottom. History argues that it is an excellent buying opportunity.
To conclude, the gold stocks are two weeks into their correction. These corrections or consolidations typically last four weeks. The gold stocks have declined six days in a row and are very close to what should be strong support at GDX $25. We could see a bounce over the next few days followed by a brief consolidation. For those who missed the initial rebound, now could be a great time to initiate or add to positions. If you’d be interested in our analysis on the companies poised to lead the next bull market, we invite you to learn more about our service.
Good Luck!
Jordan Roy-Byrne, CMT
The Reserve Bank of Australia has cut its official rate to a record low and said it was willing to ease policy further to support growth as the country’s resource investment boom comes to an end.
The central bank on Tuesday lowered its benchmark cash rate by 25 basis points to 2.50 per cent in an effort to stimulate activity in non-mining parts of the economy.
The decision to lower the cash rate shows policy makers are concerned that the non-mining parts of the economy need more support even though the RBA has lowered the cash rate by 2.25 percentage points since November 2011. Figures published by the Australian Bureau of Statistics earlier this week showed no growth in retail sales in the June quarter.
Amazon.com Inc. (AMZN) Chief Executive Officer Jeff Bezos agreed to buy the Washington Post (WPO) for $250 million in a bet that he can apply his success in e-commerce to the struggling newspaper industry.
Bezos is making the deal as an individual and not as part of Amazon, the world’s biggest online retailer, according to a statement yesterday. Current owner Washington Post Co., which isn’t selling its Kaplan education division and other businesses as part of the transaction, now plans to change its name.
In acquiring the publication, famed for its coverage of the 1970s-era Watergate scandal that led to the only resignation of a U.S. president, Bezos becomes the latest billionaire to try his hand at reviving the newspaper business. Boston Red Soxowner John Henry agreed to buy the Boston Globe last week, and Warren Buffett assembled an empire of community papers in recent years.
The existing company also will keep real-estate assets — including the headquarters in downtown Washington — and its interest in classified ventures, WaPo Labs and SocialCode businesses.
Warren Buffett’s Berkshire HathawayBRK.A +0.45% BRK.B +0.35% holds about 28% of the Post, according to the latest data from FactSet.
In what he calls an “educational video” that’s widely circulated on YouTube, comedian Chris Rock offers advice on what to do when you get pulled over for a traffic violation.
“Obey the law” he says. “Stop immediately” and “stay in your car with your hands on the wheel.” Finally, “if your woman is mad at you, leave her at home. There’s nothing she’d like to see more than you getting your [you-know-what] kicked.”
It’s a dead-on spoof of a hard truth: Respect authority. If you don’t, you increase the odds of a pricey ticket.
“Everything in that video is absolutely true,” said Sgt. Matthew Koep of the South Plainfield, N.J., Police Department. “It’s funny, but it’s accurate.”
Citizens who are generally law-abiding are likely to come into contact with the police only under two circumstances: If you’re a crime victim or you get pulled over for a traffic violation.
Police officers are not out to make your life miserable, but to make sure you’re following the rules of the road and not endangering yourself or those around you.
With a few exceptions, and an egregious traffic violation is top among them, cops aren’t mandated to write tickets. Most would rather send you on your way with a friendly warning — that can save you time and money.
But handle the situation with an aggressive or arrogant attitude and you can expect to squeeze an expensive court date into your busy schedule.
Play nice
First rule: don’t argue.
“I get this all the time,” said Karen Rittorno, a nine-year veteran with the Chicago Police Department. “‘What are you stopping me for? I didn’t do nothing.’ If they try to take charge of the traffic stop, they’re not going to get out of it without a ticket,” she said. “We ask the questions, not them.”
Accept that the police have caught you doing something that’s against the law, such as speeding or gliding through a stop sign.
“All we do is react to what people do when you pull them over,” said Dennis Fanning, a homicide detective and veteran officer with the Los Angeles Police Department. “We don’t instigate the stuff, but we will react to you. The situation will escalate or de-escalate depending on how that person reacts.”
To argue with cops is akin to calling them idiots. Don’t do that. “That’s implying that I pulled you over for no reason and that bothers me,” Koep said.
Keep it honest
Don’t lie, either. Cops are trained to note the human characteristics of lying, including twitching and looking to the left, and they know the right questions to ask to suss out the truth.
Fanning estimates that nine out of 10 people lie to him. “It’s an attack on our intelligence,” he said.
….read more HERE
Produced by McIver Wealth Management Consulting Group
Mark Jasayko, CFA,MBA, Portfolio Manager with McIver Wealth Management of Richardson GMP in Vancouver.

