Sitting On The Fence

This is one aspect that concerns me - this chart is the LME Base Metals Index.
I use it as a proxy for global liquidity.

Recently it broke support & now I think we are at approx mid 2008 & you can see the huge slump there.
If we are then expect the next 3 months to be hellish for all stock market stocks.



Then on this chart see how we've just hit the 3rd descending high & heading down.



I look at all the International Indices on this page & note how they are breaking down.

So I think next period is absolutely critical & could bring devastation to these markets.
Not an environment to be investing (speculating) in.



So regardless of how much the gold market looks like a bottom I would not try to buy it coming into this hard down phase.
Remember what 2008 did to the gold price.
It could well do the same over the next few months & if so then we could sell gold dip down to 900



Then you would see blood on the streets....



Hence why I am a fence sitter....(:-)))