Jim Sinclair’s Commentary
Not much changes. In 1974 I placed an advertisement in Barrons saying gold would go to $900. That made for good laughs amongst the establishment then at Domonicos Steak House in the financial district. When in early 2000 I suggested gold would go to $1650 there were great laughs amongst the newbies. Now we are going to and through $3500. Whatever drama occurs along the way is meaningless.
http://www.jsmineset.com/2012/07/24/jims-mailbox-994/
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12 A classic double bottom pattern has certain technical characteristics. It is probably the most well-known pattern, but a real double bottom occurs very rarely, and only at the end of a bear market or major intermediate correction.
13 The current sell-off in gold stocks certainly qualifies as either a major correction or a full bear market. As price makes the first low, the technician wants to see volume spike sharply, and that happened here.
14 Many investors were in a state of panic as that first low occurred, and their selling is what produced that enormous volume.
15 The second low in a classic double bottom pattern needs to occur at least a month after the first one, and it should occur on much less volume. You can see that the volume on the 2nd low is dramatically less than the volume at the first low.
16 Another key “textbook” characteristic of the second low of this formation is meandering price action. Note the small black box I put on the chart. You can see that GDX price movement is currently weak and aimless.
17 The good news is that the double bottom pattern on the GDX price chart is technically perfect. The bad news is that you are living through a “super-crisis”, where personal surprise is the main theme.
18 The double bottom pattern that has formed on GDX and many individual issues is a very positive event, but it is not a guarantee. If the bearish head and shoulders pattern wins the clash of the titans fight against the bullish double bottom, it’s critical that you are able to buy GDX in the $36 area.
http://www.321gold.com/editorials/thomson_s/thomson_s_072412.html
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The truth is that you’ve been doping it up for most of your life. You’ve been doping it up with an opiate, not unlike heroin, Oxycontin, or morphine. You’ve been doping it up for breakfast, lunch, dinner, and snacks. No tracks, no toothlessness, no pee stains on your trousers, no cardboard sign reading “I’m homeless and need help” . . . but you’ve still been doping it up.
You’ve been cleverly disguising your opiate of choice as muffins, bagels, breakfast cereals, and sandwiches. As with many of the dark and fascinating hidden issues surrounding modern wheat, this is the effect of the gliadin protein of wheat.
http://www.wheatbellyblog.com/2012/07/doped/
