Thoughts on Markets

Thursday, December 09, 2010

Stealth Markets - Gold - Jesus Christ

Folks,

This is a joyful season, because Jesus Christ was made man by the Holy Spirit through Mary. He came to earth to show us God, the Father, and to take upon Himself the judgment which was rightfully ours. God told us that "The soul that sinneth, shall surely die." This says that each person past, present, and future who is born through the union of a man and woman deserves to die for our sin. James tells us, "If we violate one of the smallest of God's Law, we are guilty of violation of all." The standard is perfection and we will never be able to achieve that. "All of our righteousness is as filthy rags to the perfect God. 

By the way, we are sinful, not because, we sin. We sin, because we are sinful by nature. We inherited a sin nature from our parent Adam. Thus, we remain a captive of Satan until the Holy Spirit brings us to life, shows us our sin, and leads us to Jesus Christ that we can then be covered with His righteousness and be reconciled with the Father. God does it ALL. We do nothing, but the new creature He creates us into will have the desire and power to obey God and enjoy Him forever. We do not achieve perfection during temporal life, but continue to grow into the likeness of Christ more and more. We do continue to sin, but are brought up short by the Holy Ghost and repent each time. 

These are the facts through which each chosen person will receive eternal life with Jesus Christ. All of this must the the overriding central thought during all of the Christmas season. He is the reason for the season. 

The detractors: Santa Claus, materialism, shopping, hassle & bussle,  traffic, television, sports, and all must be eliminated, or at the very least, be so secondary that they are barely visible. It is not a matter of simple priorities, but Jesus Christ must be the central focus of every area of our lives. All else should appear a rubbish as we continue to gaze upon our Lord and Savior and fellowship with like minded believers. This is the marching order for a Christian world and life perspective to which all are called and to which His people are empowered to live.

Think, pray, and study these things by regularly reading your bible. A blessed season to one and all, Doug

Gold and all markets are in a stealth mode of operation with a great deal of volatility. We are seeing rapid and significant shifts in direction. I believe this is due to the extremely fast action of program trading by computers. The trading programs go into a buy or sell mode in seconds and can reverse as quickly. We are seeing selling and then virtually immediate buying. Thus, there appears to be great indecision across the spectrum of our markets. This is confusing, but is a sign of the time. The volume has not been great in either direction which adds to the stealthy mode.

Let's take a look at gold in the StockCharts.com graph, below.

The graph shows the indecision from about the middle of October continuing this week. Which way will gold move now. Notice that there is are a series of three higher highs which indicates very strong upward bias. However, the following pull backs are scary. The price is testing the shorter moving average. We are being presented with buying opportunities in the mining stocks for the stout of heart, but we are being encouraged to begin trading in and out over time. This is tempting; however, I have been burned many times doing just that in similar markets. There  are also times when I have been able to sell a few shares and bought back in with an increase in shares at lower prices. There is always the danger of selling only to see the price jump too significantly to allow comfortable replacement of sold shares.

Both gold and silver are up early in the day as this is written.

From MineWeb.com:
Gold steadies after sell off
Prices of the yellow metal stabilised on Thursday as U.S. Treasury yields fell for the first time in three days. HERE.

From MineWeb.com:
2011 to be another stellar year for gold - Nichols
Yet another bullish assessment of the likely progress of the gold price medium and long term by precious metals specialist, Jeff Nichols. HERE.

From MineWeb.com:
Despite brief corrections, gold & silver to remain star performers--BMO
After a small, but short lived, correction, BMO Global Mining researchers say they expect silver prices to outperform gold prices into 2011. HERE.

From MineWeb.com:
China gold imports to rise six-fold this year as demand zooms
China is expected to import nearly six times as much gold this year compared with 2009 as gold appetite continues to escalate. China and the Chinese know the value of real money. HERE.

From Kitco.com:
Comex Gold Moves Up on Bargain-Hunting, Weakening U.S. Dollar Index
09 December 2010, 9:11 a.m.
By Jim Wyckoff  HERE.



From TheStreet.com:
Gold Prices Rise After Two-Day Slide
Gold for February delivery was adding $6.80 to $1,390 an ounce at the Comex division of the New York Mercantile Exchange. The gold price Thursday has traded as high as $1,393.30 and as low as $1,381.10. HERE.

Silver following along, but some stronger.
From Reuters.com:
S.Africa gold output falls 1.5 pct y/y in Oct
A very brief article revealing some of the problems with SA gold miners. The metals are more costly to mine and there is harassment by thieves. HERE.

Miners from Scottrade

Currencies from Kitco.com:

Some Prices: FVITF 4.39; BULM 1.28; HHWW 2.87; OLVRF 1.2788; TBT 38.22 (Long Term Treasury Bonds up a tad.); DOW 11370+ of  1.82; SPX up 2.71 to 1230.99; Gold up 5.80 to 1387.10, and Silver up 0.46 to 28.82.

Best to each, Doug

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