news.goldseek.com >> 17 November 2009
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news.goldseek.com >> 17 November 2009 |
Gold to Natural Gas Ratio and What It Could Potentially Mean
By: Sol Palha, Tactical Investor
Right now we have an extreme development in the natural gas market; natural gas prices have dropped to a multi year low and the oil to natural gas ratio and Gold to natural gas ratio are both trading in the extreme ranges. History illustrates that all extreme moves nearly always produce counter moves in the opposite direction which are just as strong if not stronger.
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news.goldseek.com >> 11 November 2009 |
Has The Dow Put In A New 52 Week High? Absolutely Not
By: Sol Palha, Tactical Investor
A lot of noise has been made each time the Dow traded to a new 52 week high and the same chorus was once again sung when it put in back to back new highs on Monday and Tuesday. A very short and simple calculation reveals that all these new highs are illusory in nature; like a mirage in the desert, it looks real but when you try to examine it from close, it vanishes.
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news.goldseek.com >> 1 November 2009 |
Long Term Analysis of the Dow
By: Sol Palha, Tactical Investor
When we compared the current pattern to that of the 1929-1930 Era in an article titled The Dow; ominous parallels to the 1929-1930 Era , we stated that the pattern was calling for the Dow to pull back all the way to the 1400 ranges. This does not mean we are actually stating that this will come to pass right now; we are just talking about possibilities.
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news.goldseek.com >> 29 October 2009 |
Dow's 52 Week Highs Not Confirmed
By: Sol Palha, Tactical Investor
The 3 charts clearly illustrate the divergence between the Dow industrials, the Dow transports and utilities; the Dow has put in a series of new 52 week highs while the transports and utilities are struggling to get there. Prudence and caution are warranted now and traders should think twice before jumping into the markets.
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news.goldseek.com >> 25 October 2009 |
Amazon; A New High, Not Really
By: Sol Palha, Tactical Investor
The so called big news is that Amazon finally rallied to a new all time high. The experts making these claims should be viewed as the blind leading the deaf. Many would question our audacity to make such a statement and to those who do we have 3 simple words “Pay close attention”.
Debt Crisis
By: Sol Palha, Tactical Investor
The Japanese markets have still not recovered after the real estate bubble which lasted from 1986-1990 despite having dropped interest rates to zero and throwing volumes of money at the problem. Look at the above chart, total Debt in 1990 was roughly 150 of GDP: today total debt is close to 290% and the market is still in a funk. Could this be what lies in store for the U.S?
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news.goldseek.com >> 15 October 2009 |
Dollar Update
By: Sol Palha, Tactical Investor
We are not long term dollar bulls, but we feel that dollar is due for a relief rally as it has mounted a very strong correction in a relatively short period of time. We felt the same way from late 2007 to early 2008 and went on record to state that the dollar would mount a very strong rally that would catch the majority with their trousers down.
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news.goldseek.com >> 9 October 2009 |
A Step Back In Time
By: Sol Palha, Tactical Investor
The info below provides an interesting view of what took place in the 1929-1930 time periods. If one had to take away the dates, one would think that the writers were referring to current events. History clearly repeats itself and the stories posted below quite clearly illustrate this point. Our comments are posted in blue.
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news.goldseek.com >> 2 October 2009 |
The Dow; Ominous Parallels to the 1929-1930 Era
By: Sol Palha, Tactical Investor
The Dow appears to have topped on the 23rd after trading as high as 9917 and ending the day on a negative note. Such an occurrence is called a key reversal day and usually marks the beginning of a corrective phase. If the Dow does not trade past 9600 soon and for a period of at least 5 days, then the odds favour that this correction is going to start to intensify.
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news.goldseek.com >> 18 September 2009 |
The Bounce in the Housing Market, Interest rates and the Economy
By: Sol Palha, Tactical Investor
Stories such as the one listed below are going to increase in the months to come; indeed since that story came out in June, we have seen articles of a similar nature advocating that real estate has put in a bottom and that its time to buy. At some point even the most sceptical will feel inclined to believe that the housing sector has put in a bottom.
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news.goldseek.com >> 23 July 2009 |
Random Musings
By: Sol Palha, Tactical Investor
World wide grain production is already down this year and there are some estimates which suggest that this year’s crop could come in 30% lower than last years take. One of the main culprits is drought, which has been a major problem in the last few years. However now we have an even more sinister threat. The story below clearly points out what this threat is.
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news.goldseek.com >> 20 July 2009 |
Hyperinflation and Gold
By: Sol Palha, Tactical Investor
The current pattern is projecting that Gold is going to trade in a wide channel formation for several more months, possibly as late as the 2nd quarter of next year, though it is more likely to be until the 1st quarter of next year. This also coincides with the fact that the dollar and the bond markets are expected to rally into next year.
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news.goldseek.com >> 2 July 2009 |
Oil and Bonds
By: Sol Palha, Tactical Investor
While we can draw many conclusions from the above charts the main one to focus on is inflation. These charts are clearly indicating that inflation is the next major threat and not deflation as most government economists are projecting. Once again, we would like to warn our subscribers that they should cut down on all levels of debt, use excess money to purchase bullion and commodities related stocks on all strong pull backs. The next 3-6 years are going to bring about unprecedented changes.
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news.goldseek.com >> 26 June 2009 |
Inflation and the Dollar
By: Sol Palha, Tactical Investor
Inflation is defined as an increase in the money supply and not as many economists falsely refer to it as an increase in the cost of goods. The price increase is a direct result of inflation, but it is not the definition but just a symptom of inflation. If one looks at the above two charts one immediately spots how dramatically the money supply has risen in the last 12 months.
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news.goldseek.com >> 28 May 2009 |
The Move into Hard Assets
By: Sol Palha, Tactical Investor
China is aggressively jumping to hard assets again, they are seeking to unwind their position in the US dollar or at the very least hedge themselves against the upcoming hyperinflationary phase that is going to hit the entire world in the not to very distant future.
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news.goldseek.com >> 20 May 2009 |
Hyperinflation and the Changes It Is Going To Generate
By: Sol Palha, Tactical Investor
This article by no means deals with all the events that could, might or should unfold if and when we enter a period of hyperinflation; one could literally write a book if one dealt with all the potential scenarios. We have chosen to briefly focus on a few areas and our intention is to deal more with the remedy than spend endless time talking about the problem.
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news.goldseek.com >> 16 April 2009 |
Random Musings
By: Sol Palha, Tactical Investor
Now that the Dow has rallied almost 1500 points from its lows, the experts are snapping out of their panic induced stupor, the masses are wondering what in the hell possessed them to dump everything at or very close to the bottom and the few that resisted the urge to surrender and give into panic are finally feeling somewhat vindicated. So what is the right response?
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news.goldseek.com >> 7 April 2009 |
Copper; A Long Term Opportunity in the Making
By: Sol Palha, Tactical Investor
Copper traded past 150 for 9 days in a row and in the process hit its first upside target of 180 before pulling back. The next objective for copper would be to trade past 180 for 3-5 days in a row and in doing so set up a pattern that would trigger a move up to the 220-240 ranges before a stronger correction takes hold.
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news.goldseek.com >> 18 March 2009 |
The Dow; Bottoming or Crashing
By: Sol Palha, Tactical Investor
Out of all 3 pending bubbles the one that is most likely to pop now is the bubble in the Bond markets. Investor’s flung massive amounts of money into bonds last year when they panicked, dumped all their holdings and fled for the hills. Make sure you have little to no exposure to this market.
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news.goldseek.com >> 15 March 2009 |
Opportunities in the Precious Metals Sector
By: Sol Palha, Tactical Investor
Gold managed to surge past 960 and actually traded all the way to 1004 before rapidly pulling back. Even though the Dow has gone on to put in a series of new 52 week lows and has now traded well below 7000 , Gold has not surged to new highs, this suggests that the Gold sector could be in for a sharp and short correction which could roughly last 3 months.
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news.goldseek.com >> 6 February 2009 |
Electricity and Coal
By: Sol Palha, Tactical Investor
There are several ways to play this sector, some more rewarding than the others, but the simplest way if you are bullish, would be to purchase shares in KOL, the coal ETF. As market conditions are currently far from normal, individuals should refrain from taking huge bites, but instead deploy their money in bits and pieces. Finally, one needs to take the long term view, for the short term ride is bound to be volatile.
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news.goldseek.com >> 9 January 2009 |
Copper and the Dollar
By: Sol Palha, Tactical Investor
It is said that the economy usually mimics the copper markets, and upon examining the above chart of copper, it appears that the economy and copper are trending in the same direction. Copper is now closer to a bottom than a top and hence from this we can infer that the markets are also close to putting in some sort of bottom, if one takes a long term perspective.
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news.goldseek.com >> 6 January 2009 |
Recessions; Are They Really As Bad As They Are Made Out To Be?
By: Sol Palha, Tactical Investor
Investors should not let fear overwhelm them; fear and euphoria play nasty tricks on one’s mind; opportunity is made to look like a disaster and disaster looks like opportunity. We still believe that the current economic situation will worsen before it gets better, but if you wait till the majority deem that it is safe to venture forth and purchase stocks, the train will have left the station, and you will be left holding a worthless ticket.
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news.goldseek.com >> 23 December 2008 |
The Dow, Dollar, Gold and Oil
By: Sol Palha, Tactical Investor
Gold traded as high as 888, well within our suggested target range and subsequently pulled back. There is a chance it could trade into the suggested ranges one more time before putting in 3-6 month top, that should result in a re test of the 720 ranges. As stated before a break below 720 for more than 7-9 days could drag it all the way down to the 650 ranges. This will produce a mouth watering long term buying opportunity; the next leg up will probably result in gold testing the 1200 ranges.