MBO Issue 58 (Oct 2016) The Hopeless Future

By Lawrence

MarketBiasObserver

Content

  • Review
  • Euro Breakdown Play Intact
  • S&P Limited Upside Potential
  • Gold Completing Its Bottom Building Process
  • Big Picture Summary

 

 

Review

Euro topped out at the pre-breakdown flush crime scene around 1.132 and eventually tested the support at 1.112 again. Instead of giving us a breakdown, Euro managed to coil up in a tight range whole month. Bearish expectation correct but obviously it is not that easy to get a total breakdown since central banks are fighting this in the background.

S&P flushed down to support as projected in last issue. Since then we also got the bounce as warned in the special update. Since then S&P has coiled up just like Euro.

Gold spent most of September forming a downside triangle which was broken last week. Since then it flushed down to its pre-breakout resistance.

 

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Comments
  • MidKnight October 11, 2016 at 9:46 pm

    What amazes me the most about the US election nonsense is that there are how many million people in the USA and it comes down to only these 2 possible candidates? The system is clearly broken if this is the best options for US presidency. I’ve been completely disgusted to watch this whole thing play out over the course of this year.

    • Lawrence October 12, 2016 at 12:48 pm

      This is the exact same problem everywhere in Europe.

      And to a lesser degree in many Westernized Asian countries.

      The global economic slowdown will impact people everywhere badly this time.

  • melvyn October 12, 2016 at 6:46 am

    LC, can you please enlighten the possible ways to prepare for the inevitable…

    • Lawrence October 12, 2016 at 12:51 pm

      As mentioned many times before, it will be a very long process until the fiscal health of the world returning to normal. It can be10 to 15 years. It can be more.

      Living in a “safer” country, deleverage on speculative investments like investment in properties, and live within your means to pile up cash are all simple and sound strategies.

      Being able to take advantage of the situation to profit from the expected outcome would be even better but it depends on the risk tolerance and availability of risk capital.

  • smilingsynic October 14, 2016 at 5:52 pm

    115 area looks like the fulcrum for gold (GLD) price movement the last several years. Price went around 15 below it, and then around 15 above it. Just an observation. Not interested in going long gold until around 100.

  • smilingsynic October 14, 2016 at 5:53 pm

    I am going to try to contribute more around here, now that my personal life is getting somewhat in order.

  • smilingsynic October 14, 2016 at 5:56 pm

    Heavy resistance at around 12 on USO. Not a good etf, though. Just saying.

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