Kirkland4 Blog

Posts tagged “Market trend

An Economic View…

The explosion in the precious metals today should be viewed with caution. What we have is either exuberance over the demise of the obama power play, or an unrealistic assumption of the rate of inflation. If the tea party gains influence this will be a huge damper on the rate of inflation. This does not bode well for gold but might be okay for other commodities if industrial production picks up.

The stock market is so depressed currently that it is likely to be stronger than commodities if the conservative trend continues. This will be very powerful for stocks since a weakening of the obama grip means lower taxes and less intrusion in the private sector.

What is shaping up then is a secular Bull Market in stocks. The gold stock cycle now favors stocks significantly. Usually in situations like this it is better to find the blue chips for initial investment.

Later one can choose the secondary and tertiary issues. The key now is to watch if the breakout is sustained. Take a small initial position if you want but buy bigger on a reaction to this first jump. The big boys are watching this very closely. They love breakouts to new highs. Many of their timing mechanisms key on this. Put a stop at the bottom of two bars back on all purchases and good luck.

~Bill

For more on economics and a detailed insight to “How It Works” Power Cycles has just been released in e-book form. Available here: http://www.bio-etherics.com (Located in the Etheric Shop) Hard Cover is also available in limited quantities.