-- Published: Tuesday, 20 October 2015 | Print | Disqus
By Stewart Thomson
1. Canada has a new Prime Minister. His name is Justin Trudeau.
2. ďTrudeau has pledged to run small budget deficits and spend on infrastructure to stimulate economic growth, which has been anemic for years. He has also promised to raise taxes on high-income Canadians and reduce them for the middle class.Ē Ė Reuters News, October 20, 2015.
3. I have sarcastically suggested that US President Obamaís most successful program has been ďObombacareĒ. Horrifically, the United States government has borrowed trillions of dollars that it could not afford to borrow, and wasted it on endless wars in the Mid-East.
4. In contrast, China has spent and committed enormous amounts of borrowed money to infrastructure spending, and so has India.
5. Canada has now clearly chosen to follow the Asian model, leaving America and Europe to fall even further by the ďnew era waysideĒ.
6. As a result, Iím immediately issuing a prediction for the Canadian dollar, to begin a major rising trend in 2016.
7. Please click here now. Chinese demand for commodities related to domestic consumption (like oil) is not falling. Itís relentlessly rising.
8. Oil is not a huge play for me, but it is a decent asset, and it is on sale. I expect oil to rise 50% to 100% over the next 18 months, and Iím a very enthusiastic buyer of oil stocks.
9. Please click here now. Chinese oil companies are poised for a big rebound, but most US oil companies should also take part in the coming ďupside funĒ.
10. China is staging a planned and highly successful transition from an exports oriented economy, to one focused on domestic consumption.
11. In my professional opinion, China is going to accomplish in three years, what it took the empires of the past (including America and England) to accomplish in thirty years, in similar transitions.
12. Please click here now. Over the past several years, numerous statements and documents have been released by the PBOC (Chinese central bank), about the internationalization of the yuan, and the key role of gold in making that happen.
13. Please click here now. Thatís the daily gold chart, and it looks magnificent.
14. After a breakout from a triangle pattern, a pullback to the apex (about $1130 in this case) is always likely, but please click here now. Thatís another look at the same gold chart.
15. Itís clear that a possible bull pennant pattern is forming, with fairly dramatic upside implications for the price of gold.
16. I realize that I was pretty much alone in the Western gold community, in predicting that a massive rally would begin when the last jobs report was released at 8:30AM on October 2nd, but thatís exactly what happened.
17. Now, Iím going to go out on a second limb, and ask the community to be open to what is best termed as, ďa momentum-fuelled phase transitionĒ, to an even stronger rally.
18. Please click here now. Thatís the daily silver chart. The flag-like pattern in play now, comes after a key breakout from an inverse head and shoulders pattern.
19. Iím a keen owner of silver and silver stocks, which are now poised to begin outperforming gold. Silver enthusiasts donít need to own more silver than gold to benefit from a period of outperformance by silver. They just need to own a decent amount of this mighty metal.
20. If goldís rally does extend now, gold stocks should also extend their rally. Please click here now. Thatís the daily GDX chart.
21. Many gold stocks have rallied 100% and more, from the September lows, and GDX itself is up significantly. A pullback is welcome, expected, and adds to the positive technical picture.
22. Using Fibonacci retracement lines, a 50% pullback would put GDX at just under $15.
23. More importantly, that pullback would create a bullish right shoulder of an inverse head and shoulders bottom formation.
24. Note the enormous volume that has occurred since mid-July. Itís clear to me that GDX and its underlying gold stocks are moving directly from weak hands to very strong ones. If GDX does trade under $15 this week, Iíd like to see the entire Western gold community pressing their gold stock buy buttons, in unison!
Special Offer For Website Readers: Please send me an Email to firstname.lastname@example.org and Iíll send you my free ďOil My Golden Rockets!Ē report. Rising oil prices are inflationary, and bullish for gold! I highlight 6 oil stocks and 6 junior gold stocks that are poised for serious upside action in 2016!
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Stewart Thomson is a retired Merrill Lynch broker. Stewart writes the Graceland Updates daily between 4am-7am. They are sent out around 8am-9am. The newsletter is attractively priced and the format is a unique numbered point form. Giving clarity of each point and saving valuable reading time.
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Stewart Thomson is no longer an investment advisor. The information provided by Stewart and Graceland Updates is for general information purposes only. Before taking any action on any investment, it is imperative that you consult with multiple properly licensed, experienced and qualified investment advisors and get numerous opinions before taking any action. Your minimum risk on any investment in the world is: 100% loss of all your money. You may be taking or preparing to take leveraged positions in investments and not know it, exposing yourself to unlimited risks. This is highly concerning if you are an investor in any derivatives products. There is an approx $700 trillion OTC Derivatives Iceberg with a tiny portion written off officially. The bottom line:
Are You Prepared?
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-- Published: Tuesday, 20 October 2015 | E-Mail | Print | Source: GoldSeek.com