By John Galt December 28, 2011 – 12:45 ET The mid-day action in gold is a nasty reminder that when deflation warnings are ignored, the ignorant shall be punished: With gold down almost 2% at 12:30 ET in thin trading most bubbleheads are on the financial networks pointing out the fact that gold is a horrible investment because it just sits there or that there is no reason to buy gold. In reality, once gold breaks the danger zone support levels in the chart below,…
By John Galt December 28, 2011 – 08:40 ET Somehow I don’t think the fire department can save them. Call it a fire sale, terminal velocity, whatever one might like, but a 65% drop from the top within a one year period is usually a death sentence for an equity and in this case a poorly run company. The only thing missing from this chart is a quote in single digits which should be coming very, very soon.
By John Galt December 28, 2011 – 08:15 ET When these pages say “preparing for the fall” I am not referring to a change in seasons. The one chart, a bear among the most bearish, says it all: The breakdown of of Goldman Sachs is a leading, not lagging indicator of future activity. This collapse after the death cross as pictured above is usually a warning for a stock and in this case the financials that further stresses are about to impact the markets. The…
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