The Gold Scold

The yellow metal debate is pretty fierce. On one side, you've got a viable argument that it's the only true store of value in a world full of fiat currencies. On the other, there is the view that, in the words of Warren Buffett, "It has no utility. Anyone watching from Mars would be scratching their head."

The truth likely lies somewhere in the middle and is measured by the ultimate arbiter of price. Through that lens—and purely through that lens—I would note the three consecutive "lower highs," which is a technical negative no matter how you slice it.


Click to enlarge

I would also draw your attention to the support zone of $855-$865, which has already been tested twice and, if breached, would be of technical significance.

Random Thoughts
 

• This chart pretty much sums it up: 17 lower highs since 2007 (unmistakably bearish) vs. how far we've fallen so very fast (-44% from the highs). See both sides, please.
  
  
• Trading moves are characterized by three phases (denial, migration and panic) across four time horizons (nuances, trends, phases, cycles). Creating that matrix might help compartmentalize your risk.
  
  
• Agendas abound. Please keep that in mind when absorbing the mainstream media.
  
  
• I would be lying if I said I wasn't looking forward to taking a vacation. The question, of course, will be whether I'm allowed to fly when that time finally arrives.
  
  
• Why do I keep thinking of the trading phrase "never let an opinion get in the way of making money"?
  
  
• Have you seen President Fish's take on Twitter?
  
  
• In an interwoven derivative laced financial fabric, isn't the entire banking system only as strong as the weakest bank?
  
  
• Trade options? Want to trade options?  Check out a free trial of our OptionSmith by Steve Smith (smart cookie) for options trades, analysis and in-dept strategy.
  
  
• Y'all see those downside gaps in Research in Motion (RIMM) and Amazon (AMZN)?
  
  
• They can't fill... right?
  
  
• If those two master beta plays continue to sag, can Apple (AAPL) be far behind?
  
  
• Did I mention how rad Rock of Ages was?
  
  
• One of the Minyanville mainstay reminders is “remember to breathe.” Given the recent warning from the World Health Organization, will that soon be taken from us as well?
  
  
• Perspective, friends—it could be worse. And for alotta folks around the world, it already is. Keep your chin up for as a wise man once said, “this too, shall pass.”

R.P.


In memory of our fallen friend and trusted colleague, Bennet Sedacca, 100% of the donations made to the RP Foundation through April will be channeled to philanthropic endeavors consistent with the RP mission, working closely with the Sedacca clan in the distribution of those funds. We thank you kindly for your support as we strive to effect positive change in the lives of children.