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Gold Completes Golden Cross

Tyler Durden's picture




 

For the first time in 13 months, gold's 50-day moving-average is above its 200-day moving-average. This so-called "golden cross" occurred in Feb 09 before gold surged over 100% in the following years (but also occurred 'falsely' in September 2012.

 

 

Some technicians are reflcting on the last big run that gold had...

 

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Fri, 03/21/2014 - 12:44 | 4577456 bigdumbnugly
bigdumbnugly's picture

come to papa

Fri, 03/21/2014 - 12:46 | 4577467 Manthong
Manthong's picture

Propitious

Fri, 03/21/2014 - 12:51 | 4577492 Badabing
Badabing's picture

Charts mean nothing as long as the price fixing goes on!

 

Is that air your breathing?

Fri, 03/21/2014 - 12:57 | 4577525 Lewshine
Lewshine's picture

Exactly! Since when do chart fundamentals matter in a completely contrived market? I recall ZH banging the drum on the 35 hindenburg omens this last winter. Complete and total nonsense! Get a job Tyler!

Fri, 03/21/2014 - 13:13 | 4577588 knukles
knukles's picture

Cut me a break, people!
Lemme roll in my poop for just a moment of solitary bliss.
Anything to brighten my picture is good.
The Real News Sucks
The MSM Propaganda is Befuddlingly Bad
The People Who Believe the MSM Propaganda are Worse (and yes, I spent 4 hours in a meeting with several of them the other day... I thought I was on a different planet and these were powerful folks, too... dispiriting)
The Manipulations are Torturous
World Leadership Sucks (As an aside, you all see where the head dude in South Africa's being asked to repay some portion of $23 Million in personal household improvements?  $23 Million.  Yeah, the very same folks who had that interpreter who waved his hands all about nonsensically... staunch allies and protectors of human rights)
This is painful, folks!
And then over half the country has what appears to be a man crush on Vlad just because they want some ignominy to befall Barack and it sounds like we're all headed to Concentration camps, cheering people worse leaders than our own, singing how Work Makes Us Free all the way with Big Smiles, or something like that...
Please. just let us have a momentary Blue Pill Illusion.

Fri, 03/21/2014 - 13:13 | 4577608 cifo
cifo's picture

I am sure that TPTB are working, as we speak, on "falsifying" this cross too.

Fri, 03/21/2014 - 13:31 | 4577678 ThirdWorldDude
ThirdWorldDude's picture

Short summary: 

Stack on!

Fri, 03/21/2014 - 14:17 | 4577865 N2OJoe
N2OJoe's picture

I hope it keeps getting monkey hammered until the bitter end.

Stack on bitchez!

Sat, 03/22/2014 - 04:57 | 4579790 douglas
douglas's picture

Two important issues to consider with ¨the Golden Cross¨

1. The Golden Cross metric is much more valid when the 200 DMA is also on a definite uptrend, while getting closer its not the case quite yet.

2. At least to a certain extent, the high level of PM manipulation makes all technical analysis (including that expressed in #1) difficult or even irrelevant.

Sat, 03/22/2014 - 10:23 | 4580103 actionjacksonbrownie
actionjacksonbrownie's picture

ummm... you people DO realise that the last time this identical scenario occured, gold prices FELL 30%, and HUI, GDX FELL 60%

 

Keep your stops tight, or better yet, wait for confirmation.

Sun, 03/23/2014 - 14:58 | 4582908 Thomas
Thomas's picture

Yup. Turned it into a golden shower.

Fri, 03/21/2014 - 13:23 | 4577646 DoChenRollingBearing
DoChenRollingBearing's picture

Right on, knuks!  Reality, it´s ugly, but a little but of humor makes the medicine go down...

Fri, 03/21/2014 - 13:11 | 4577590 Badabing
Badabing's picture

LEW,

 

After doing a thorough analysis using OHLC charts overlaying Elliott wave principle, Fibonacci ratios, momentum rate, the 200 and 50 DMA, crossover and resistance break out trending I have come to the conclusion that the in-depth analyses just preformed is for SHIT because the market is counterfeit!

Fri, 03/21/2014 - 13:24 | 4577649 Jonas Parker
Jonas Parker's picture

OK, I'm convinced. I just sold all my PMs and went into bitcoin!

 

[/SARC]

Fri, 03/21/2014 - 14:29 | 4577896 toothpicker
toothpicker's picture

You forgot the midget tranny 666 moving average!

Fri, 03/21/2014 - 13:13 | 4577602 FinalEvent
FinalEvent's picture

Nice avatar!

Very original idea!

You stole mine 

I should have +1001

Fri, 03/21/2014 - 13:50 | 4577770 Badabing
Badabing's picture

Hey pal
I've been around for more than 29 weeks.
And so has my avatar!

I still love you

Fri, 03/21/2014 - 21:49 | 4579294 chiswickcat
chiswickcat's picture

Price fixing can only work in some market situations, reality is often too rigours to be manipulated...

Fri, 03/21/2014 - 12:52 | 4577495 BadDog
BadDog's picture

that means lucky, or something. anyways i think it's a good word

Fri, 03/21/2014 - 13:07 | 4577574 Manthong
Manthong's picture

Go with “favorable” or “encouraging”..  it might mean the lid is starting to come off.

Got stacks?  .. maybe a few diggers?

Fri, 03/21/2014 - 13:17 | 4577624 Bastiat
Bastiat's picture

Auspicious!

Fri, 03/21/2014 - 14:02 | 4577801 FuzzyDunlop21
FuzzyDunlop21's picture

clever

Fri, 03/21/2014 - 12:59 | 4577513 DoChenRollingBearing
DoChenRollingBearing's picture

"Technical Analysis" never worked for me when I tried it, although I know a couple of guys who swear by it.

But, the main point (ex. for traders) is that gold at ANYWHERE near these levels is a bargain.

If you have very little (or no) gold, and you have children, you have no excuses but to get out and buy gold ASAP!  There are very few stores of value (none?) that are better.

***

Peru is No. 6 in gold production now (just behind S. Africa (!)).  If they get and keep their act together (OK, big "if"), they may become No. 5 soon.  There is a lot of gold in Peru, they have only really just started exploring this country.

http://tinyurl.com/9hlvzdx

Fri, 03/21/2014 - 13:14 | 4577610 knukles
knukles's picture

Dude, today was my 9th!

Fri, 03/21/2014 - 13:26 | 4577656 DoChenRollingBearing
DoChenRollingBearing's picture

+ ((9 * 365) + (a couple or so of leaps)) !!

538 days for moi, fewer than the rats running Congress...

Fri, 03/21/2014 - 13:27 | 4577657 DoChenRollingBearing
DoChenRollingBearing's picture

Peru must LOVE ZH, they keep dupe-ing my comments...

Fri, 03/21/2014 - 13:16 | 4577623 cifo
cifo's picture

Buy it even if you don't have children. Make it a hobby.

Fri, 03/21/2014 - 13:24 | 4577651 fijisailor
fijisailor's picture

Just like Bolivia.  The locals are still panning for it in streams and making a living.

Fri, 03/21/2014 - 12:46 | 4577468 Soul Glow
Soul Glow's picture

golden cross, bitchez

Fri, 03/21/2014 - 12:52 | 4577497 TahoeBilly2012
TahoeBilly2012's picture

If they slam it real good can the "uncross" it, maybe it was only a copper cross from far away.

Fri, 03/21/2014 - 13:15 | 4577617 knukles
knukles's picture

William Jennings Bryant invented that for gold, didn't he?

Fri, 03/21/2014 - 13:57 | 4577787 TahoeBilly2012
TahoeBilly2012's picture

I am long SLW calls, a glutton for punishment. Cross had better work.

Fri, 03/21/2014 - 12:55 | 4577514 EatYourCornTake...
EatYourCornTakeyourPill's picture

To retard "lawsofretardness" wherever he may be hiding.

Ever heard of a catch 22? If the U.S currency inflates, those countries reserves wither away. I don't think you understand the monster that is the USD. Either that or you're simply choosing to ignore the reality of how dependent the world economy is on the U.S and it's currency. If the world lost faith in USD they would be shitting away their own money. Over 50% of world reserves are in USD. If they try to dump USD, they will be dumping their own money. Case and point China.

Fri, 03/21/2014 - 13:00 | 4577538 maskone909
maskone909's picture

If there is 50% usd global holdings, and the fed tripples m2, isnt that incentive to flee the dollar?

Fri, 03/21/2014 - 13:02 | 4577540 Beam Me Up Scotty
Beam Me Up Scotty's picture

Uh, and what is China buying its gold with?  USD.  Are their dollar holdings going up or down?  Treasury holdings going up or down?  Get rid of your dollars, then pull the rug out on them.

Fri, 03/21/2014 - 13:20 | 4577638 EatYourCornTake...
EatYourCornTakeyourPill's picture

Except they import trillions of dollars yearly. How much gold is there in the entire world? Probably not even one trillions worth.

 

Yes, I agree, it's reason enough to diversify away from it. It's a lengthy process though, very lengthy. This guy was saying that it's an overnight thing, but it isn't. If countries abandon the dollar they will effectively destroy their own economies. The world economy is extremely dependant on the U.S, extremely.

Fri, 03/21/2014 - 13:26 | 4577659 maskone909
maskone909's picture

Who ever is first out the door wins. Once velocity picks up usd holdings will lose 75% value in a short amount of time. The glue that is holding it together is the american military.

Fri, 03/21/2014 - 15:10 | 4578074 EatYourCornTake...
EatYourCornTakeyourPill's picture

To some degree it is the U.S military. NATO largely funded by the US protects Europe, which we rebuilt from scratch after WW2. Then US bases protecting Japan from China. Then more adventuristic bases across the middle east protecting our oil interests.

I wouldn't discredit the monster that is the U.S economy though. Which you all seem to do. Where'd you get 75% btw? Random stats based on nothing are always my favorite. Gold lost 40% in like a month, what alternatives are there to USD? You think China wants a bilateral agreement with Russia and get paid in RUBLES? What are they gonna do with those? No one wants that shit. No one wants RMB. USD, Euros, those are stable currencies, that's what people want.

Fri, 03/21/2014 - 13:35 | 4577694 Soul Glow
Soul Glow's picture

Blah blah blah.

Look, all fiat is worthless, ok?

Move along.

Fri, 03/21/2014 - 14:09 | 4577839 FuzzyDunlop21
FuzzyDunlop21's picture

Oh please, take this American exceptionalist bullshit somewhere else. Just like everything else in the world, the world will abandon USD slowly at first, then all at once. The very reason you cite why it will be a slow process is the same reason why it wont be. When people see their USD holdings declining in value, will they A) stand around with their thumbs in their arse, like you suggest, or B) sell, Mortimer, sell!. It only takes one big player to say fuck it, one player to say no we dont want your Monopoly money 

Fri, 03/21/2014 - 15:05 | 4578045 EatYourCornTake...
EatYourCornTakeyourPill's picture

Right, and when the USD is declining, which alternative currency or commodity will replace it in world trade? lol! you have to answer that question first before you say everything you said. Will countries leave the USD even if it's inflating at 7% year over year and go to rRMB or ruble? Euro? Will then send shipments of gold across seas in exchange for goods? I don't see any realistic alternatives. Bitcoin was the most promising but you can't ignore the fact that the internet is cyberspace at the end of the day.

The U.S is exceptional, people even in Western Europe don't have the opportunity we have here. All you need here is a good education adn you can make good money. In Europe, you don't really move up classes.

Fri, 03/21/2014 - 15:50 | 4578248 LongBalls
LongBalls's picture

Your whole US hypothesis is based on the "petro dollar" standard. America has little to no exports when compaired to consumption. US consumption is based on consumer credit so then so is corporation consumption. The only thing that allows this to happen is the fact that oil is priced in dollars thus forcing the world to retain them if they want to make an oil purchase. When we print, we export our inflation. This "petro dollar" is under attack as we speak because the rest of the world is sick of us exchanging our worthless pieces of paper for their hard assets. Avoid gold at your peril. A shift is coming!!

Fri, 03/21/2014 - 16:40 | 4578436 fattail
fattail's picture

Alternative currency or bilateral trade agreements.  How about saudi crude for chinese manufacturing, or chinese ag products from africa.  Russian gas for chinese goods.  iranian crude for chinese goods.  Supply and demand for any commodity or currency stays in balance but it is the last small percentage that tips the equilibrium.  And it is not the small shift in demand for the dollar that will be noticed.  It is the shift in supply of cheap energy from west to east , feeding the chinese economy and sucking the life out of the US economy.  As the demand for the dollar goes down the supply of crude dips and will require more devalued dollars to buy crude.  Double whammy.

A little cost push inflation will  be hedonically adjusted away, oh wait food and energy isn't considered anyway.  As our economy continues its death swirl, the FED will have their excuse to untaper and print more.  The stock market will recover and every thing will be OK again for awhile, until it isnt.  It is getting harder and harder to keep fooling the sheeple, and it will go on a lot longer than everyone believes but it will end...

Fri, 03/21/2014 - 12:50 | 4577485 Mr Pink
Mr Pink's picture

Chart reading and technicals in a manipulated market....Like masturbation without the payoff

Fri, 03/21/2014 - 12:52 | 4577494 maskone909
maskone909's picture

Charts never lie...

"Fundamentals" on the other hand......

Fri, 03/21/2014 - 12:56 | 4577518 1stepcloser
1stepcloser's picture

Thanks for that visual...

Fri, 03/21/2014 - 13:16 | 4577622 knukles
knukles's picture

blister boy

Fri, 03/21/2014 - 13:23 | 4577647 Dr. Richard Head
Dr. Richard Head's picture

I like to call that masturbating with whiskey dick.

Fri, 03/21/2014 - 17:09 | 4578519 de3de8
de3de8's picture

Dog gone it, wanted suppressed prices until at least until my 2014 Eagles are purchased..
Oh well.......

Fri, 03/21/2014 - 12:45 | 4577462 mtndds
mtndds's picture

Bring it on!!

Fri, 03/21/2014 - 12:46 | 4577465 maskone909
maskone909's picture

Id be happier if the 200dma consolodated more but this is def a start!!

Fri, 03/21/2014 - 12:46 | 4577470 disabledvet
disabledvet's picture

and the Silver Surfer turns on his master.

Fri, 03/21/2014 - 12:48 | 4577476 LawsofPhysics
LawsofPhysics's picture

All paper is going to zero, eventually.  Now, physical on the other hand...

Fri, 03/21/2014 - 12:48 | 4577480 Dr. Engali
Dr. Engali's picture

Don't be pointing that shit out Tyler. Damn what's wrong with you? ;->

Fri, 03/21/2014 - 12:50 | 4577486 maskone909
maskone909's picture

Dottie herman on cnbc right now and she sounds like she is 3 sheets to the wind suckering in sheep to buy new homes

Fri, 03/21/2014 - 12:51 | 4577488 Goldenballz
Goldenballz's picture

Golden Balls!!!

Fri, 03/21/2014 - 12:51 | 4577489 greatbeard
greatbeard's picture

Charts on a thoroughly manipulated market.  How quaint. 

Fri, 03/21/2014 - 13:02 | 4577546 Who was that ma...
Who was that masked man's picture

All markets are manipulated, they always have been, that's how they work, that's what a market is. a market is simply human nature, human needs, and human emotion relating to goods and services.  Charts take it all into consideration.

Fri, 03/21/2014 - 12:53 | 4577502 piceridu
piceridu's picture

I just found religion...I will wear that golden cross.

Fri, 03/21/2014 - 12:54 | 4577504 Kaiser Sousa
Kaiser Sousa's picture

the phony paper price action in both of the only 2 forms of real money has been completely absurd...especially compared 2 the Fraud market against the real economic/geo-politcal backdrop...

so, i just keep stackin and continue moving further away from the debt coupon dollar paradigm despite the antics..

stay up ya'll...i really dont believe it will be much longer b4 yours and mines steadfastness will b justly rewarded...its about more than REAL money...its more about REAL economic and individual liberty for u and yours....

Fri, 03/21/2014 - 12:55 | 4577516 SpanishGoop
SpanishGoop's picture

So if that blue line crosses that purple thingy i'll become rich during the next few years.

Great news.

 

Fri, 03/21/2014 - 12:56 | 4577520 PlusTic
PlusTic's picture

In the immortal words of The Who...Don't Be Fooled Again!

Fri, 03/21/2014 - 13:13 | 4577600 Cpl Hicks
Cpl Hicks's picture

To infinity......and beyond!!!!!!

Fri, 03/21/2014 - 13:30 | 4577533 Hal n back
Hal n back's picture

there was not too long ago a hearing to be held on how the jobs data is being erroneously reported. Still waiting

Fri, 03/21/2014 - 12:59 | 4577534 Hal n back
Hal n back's picture

October 5, 2012 was the extra phony jobs report to help Obama to re election and drive gold prices down.

Gold had run up from 1550 range to 1800 in 2.5 months-big move and was about to break out on 10/5/12 when the jobs data hit.

 

everything has at least elements of corruptness in it.

 

Fri, 03/21/2014 - 13:02 | 4577549 El Hosel
El Hosel's picture

Lets all pitch in a buy Jamie Dimon a golden shower to celebrate the occasion.

Fri, 03/21/2014 - 13:31 | 4577676 DoChenRollingBearing
DoChenRollingBearing's picture

I´ll pitch in 30 secs after I´ve had a cup of coffee...

Fri, 03/21/2014 - 13:38 | 4577713 Soul Glow
Soul Glow's picture

All of a sudden coffee sounds pretty good.

Fri, 03/21/2014 - 15:15 | 4578108 exonomic halfbreed
exonomic halfbreed's picture

Golden Showers......... An integral element of trickle down economics ( to be renamed tinkle down econ.).

Fri, 03/21/2014 - 13:03 | 4577557 Spungo
Spungo's picture

"So if that blue line crosses that purple thingy i'll become rich during the next few years."

Technical analysis should be done in conjunction with fundamental analysis. The fundamentals say you should buy gold or gold miners, but they don't say when to buy or what the target price should be. Things like price rising above moving averages, MACD, and bolinger bands can give some indication that a trend is forming. The technicals are saying that gold is gaining momentum. Get on this bandwagon before it sails away from the station.

Fri, 03/21/2014 - 13:13 | 4577594 SpanishGoop
SpanishGoop's picture

The only thing i get from my technical based trading program is a flashing "SELL ALL PAPER", "SELL ALL PAPER".

 

Fri, 03/21/2014 - 13:06 | 4577569 youngman
youngman's picture

The Golden Cross...I will join that church

Fri, 03/21/2014 - 13:21 | 4577609 Bastiat
Bastiat's picture

You still get away with putting FRNs in the collection plate too!

Fri, 03/21/2014 - 13:21 | 4577639 fijisailor
fijisailor's picture

Right from the mouth of the FED when asked by Ron Paul.  The federal reserve owns no gold , only gold certificates.

http://www.silverdoctors.com/the-federal-reserve-owns-gold-certificates-...

Fri, 03/21/2014 - 13:27 | 4577658 eddiebe
eddiebe's picture

So where is all that institutional money that is supposed to rush into gold now?

Fri, 03/21/2014 - 13:46 | 4577748 Soul Glow
Soul Glow's picture

PBoC will likely start buying GLD whaen they run out of physical.  

Fri, 03/21/2014 - 13:55 | 4577782 FieldingMellish
FieldingMellish's picture

or selling physical to pay for company bailouts.

Fri, 03/21/2014 - 13:31 | 4577677 Fuh Querada
Fuh Querada's picture

Apart from the fact that the only validation presented for moving averages as a trend indicator has been the completely circular one that "market participants believe in them" and no validation for 50 and 100 or 200 day moving averages has been presented as opposed to any other MA such as 45, 102 and 215 1/2 day MAs (apart from "extensive retrotesting" that invariably has no relevance for future price movements), there are at least 7 different methods* for calculating MAs for any fixed duration, which can give different "predictions", but it is never stated which one is used.

Kirkpatrick & Dahlquist, Technical analysis, 2007

Fri, 03/21/2014 - 13:47 | 4577752 CharlieMike
CharlieMike's picture

Yep, it means somethig is going to happen except when it doesn't.  Completely useless.

Fri, 03/21/2014 - 13:57 | 4577781 fijisailor
fijisailor's picture

Yeah it did that near the end of 2012 on the way up and then again on the way down in early 2013.  Crossing going up did not stop it from crossing going down soon thereafter.  So like so many have commented, with manipulation, TA and a golden cross don't mean jackshit.

Fri, 03/21/2014 - 14:39 | 4577923 NoTTD
NoTTD's picture

BTFC: Buy the Fucking Cross.

Fri, 03/21/2014 - 14:53 | 4577977 Carl Popper
Carl Popper's picture

Quick! Everybody buy gold now that it is up a hundred. Lol

Actually I think it is still an ok buy at this level but if it drops to 900 dont despair. Consider it a spring/summer sale.

Everyone loves a discount at the store, right?

Fri, 03/21/2014 - 14:55 | 4577983 william114085
william114085's picture

if markets are manipulated, why trot out the charts?

Fri, 03/21/2014 - 18:43 | 4578785 The Abstraction...
The Abstraction of Justice's picture

Exactly, its just another gold bug crying wolf, as theyve done every month for the past 24 months or more. The only event we need listen for is 'gold delivery default.'

Fri, 03/21/2014 - 16:54 | 4578484 katchum
katchum's picture

Indeed, if you look at lease rates, gold goes exactly to $2000 per ounce in the next two years.

http://katchum.blogspot.com/2014/03/gold-lease-rates-topping-out.html

Sat, 03/22/2014 - 23:03 | 4581571 Izznogood
Izznogood's picture

"Past Performance is not an Indicator of Future Results"

Do NOT follow this link or you will be banned from the site!