Stockflation, Gold & Platinum
12/27/14 Weekly Re-Lay: “Stock Indices edged higher with the DJIA nearing its multi-quarter & multi-year extreme upside price target(s) – at ~18,150… Stock Indices are in the process of completing a 40-Year Cycle of ‘Stock-flation’ from their Dec. 1974 lows. About the only expectation for 2014 – that has not yet been fulfilled – was the potential for the DJIA to reach its extreme upside objectives – at ~18,150–18,500.
The month began with resistance & the projected high (for December) at 18,136–18,191/DJIA… and the DJIA took an initial stab at exceeding 18,000, but fell a few points shy. It then reversed lower and signaled a 2–4 week peak.
After dropping sharply into mid-month, and appearing as though that extreme upside target would be left (barely) unfulfilled, the Indices reversed back up and turned their daily & intra-month trends back up. That re-energized this advance and re-opened the potential for a surge to 18,150+/DJIA before the end of 2014…
Does this change any of the outlook for 2015? No… Does this change the outlook for April 2015? As of yet, no. The primary conclusion has been that a sharp, multi-week (or even multi-month) drop could be culminating at that time. That remains intact…Stock Indices are ending 2014 in the same way they began it – with increasing volatility (since mid-July)…
Gold & Silver are continuing to hold above intermediate cycles that bottomed on Nov. 3–7th – at which time Gold reached the lower end of its primary, 3–5 year downside target (1127.0–1132.0/GC) & projected an overall rebound into January 2015.
That low created a ~4-month high-high-(low) Cycle Progression and a 22-week low-low-(low) Cycle Progression that next comes into play in early-March 2015.
Silver later confirmed that by finally reaching its corresponding 3–5 year downside target (14.540–14.650/SI) – while Gold held above its Nov. 7th low. That fulfilled another Major objective and corroborated the potential for a multi-month bottom – with positive divergence.
And then, to top it off, Platinum created a third round of corroborating divergence (if you consider Palladium leading all of these metals with its mid-Oct. bottom) – spiking to new lows this past week even as Gold & Silver held at much higher lows. This sets the stage for another advance into January.
With Gold & Silver having both reached – and held – 3–5 year downside objectives, this advance could turn out to be the largest in over a year. It is even possible – based on the action of the next 4–6 weeks – that the expected mid-2015 bottom is only a retest of the recent lows.”
Please refer to the Dec. 27, 2014 Weekly Re-Lay for complete details and updated trading strategy for buy signal in Gold (around 1175.0/GC). January 2015 is expected to see strong surge in Gold & Silver as Stock Indices begin decline.