-- Posted Friday, 15 May 2009 | | Source: GoldSeek.com

By: Gary Tanashian

Here is one of those busy macro charts that help us tune out the noise of the moment and get a look at the interplay between various things. Gold, unique provider of value, insurance and safe liquidity that it is, has been biding its time in consolidation/correction against all the positively correlated stuff.

We do not fret this process, we welcome it. I believe we are in the process of wrapping up what has merely been a predictable resetting of human emotions encompassing fear, greed, regret and hubris.

People are funny animals, and they will come along and fall back in line at their due pace, once again fearful as the pendulum swings the other way. But a chart like this helps us check up on them. Check up on the status of the herd.

When gold under performs over the long term, it means confidence is high and da peeps feel like speculating. In this case however, gold is merely under performing in correction to what was an impulsive and unsustainable launch from September '08 to March '09. Da peeps' confidence is simply in a bear flag, a sucker's play.

Gary Tanashian

http://www.biiwii.com
http://www.biiwii.blogspot.com

-- Posted Friday, 15 May 2009 | Digg This Article | Source: GoldSeek.com

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