Bear's Lair

Bear Markets always follow Bull markets and a severe stock market correction is long overdue. Bears Lair will spot, monitor and analyze the stock market correction as it develops.

 

The new year started off with a bang with precious metals out-shining the competition. Is this a harbinger of things to come? We think so and we are not alone.

I think you will admit that we are in the middle of one major crazy financial mess.

Let's be frank here. I spend between 12 and 15 hours a day working in front of my computer screens watching markets and charts and reading news and reports from all over the world.

We are at the edge of a major economic crisis. Our monetary system is the underlying cause of this major crisis. The massive debt bubble created by our monetary system is about to burst.

A few weeks ago I wrote about how gold was starting to top and that everyone should expect a very sharp drop to the low $1600 area.

A Cup and Handle pattern is a bullish continuation pattern that represents a period of consolidation followed by an eventual breakout, which is the continuation of the previous trend.

I had two purposes in writing today's commentary. The most obvious intent is to help people avoid committing financial suicide in our real estate markets.

It's the thick of summer now and I'm trying to take it pretty easy this weekend and perhaps another weekend or two while the warm weather is here.

During the past 4 months we have seen the financial sector (banks) under selling pressure.

The great Khan (Chinese ruler), causes the bark of trees, made into something like paper, to pass for money all over his country." …Marco POLO, (1254 - 1324 Traveling explorer from Venice).


 

In my recent review of the bankster assault on the silver market, I alluded to the fact that we knew there was no "bubble" in the silver market, since there had not been the build-up of inventories which must take

Wow! What a week!! This week's decline in silver was on a scale not seen since the Hunt Brothers' silver liquidation of 1980. Silver was down 25.43% in only four days! How often does this happen?

Silver was one of the top priorities for many of precious metal traders until last week. However, silver market witnessed a dramatic turbulence in recent days. Let's examine what has happened in silver market, in detail.

The past few weeks we have been seeing the US Dollar slide to new lows at an increasing rate.

When gold hit the psychologically important $1,500 level it didn't surprise us, but we admit that silver's recent performance gave us a small thrill.

Having just written a commentary explaining why gold and/or silver "mania" is much more of an imminent event in Asia than in the West, when I saw silver leap more than $2/oz in early, Asian trading on Monday that definite

Back on March 31st I wrote an editorial showing that Silver could rocket up to $52 to $56 by mid-year. At the time of the writing Silver was sitting a little above $32 on the price chart.

Unfortunately my writing and reading computer has broken and has been in the shop for over a week now.

The story of gold is as rich, lustrous and complex as the metal itself. It is as ancient as the Egyptian Pharos and modern as the mirrors coated with gold which astronomers use to capture images of the universe.

Charts presented in this report are courtesy Stockcharts.com unless indicated.


 



 

It's been only a few days since we've posted our latest timing-related essay on gold and silver prices, and since that time the situation ha

Trading with multiple time frames - Every now and then it's always a good idea to look at some different time frames to be sure you have a solid understanding for the longer term trends in play.

High volatility seen in commodities market in the past week attributes toward ongoing social and economical developments in the Middle East.

In its latest Gold Demand Trends 2010 report, the World Gold Council said gold demand hit a decade high as jewelry buyers returned to the market after the previous year's near-absence and central banks became net buyers.

In its latest Gold Demand Trends 2010 report, the World Gold Council said gold demand hit a decade high as jewelry buyers returned to the market after the previous year's near-absence and central banks became net buyers.

Most experts agreed on a price target around $1,800 gold and $50 silver by the end of 2011.

Let's take a look at gold, silver and the Dow Jones from their lows of the Credit Crisis, starting with the Bear's Eye View and price charts for silver.

Political as well as economical developments around the globe, especially in the Middle East, have affected the commodity markets during the previous week.

Today the stock market bled out with a river of red candles. All of the recent gains vanished in one session.

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