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Retired chief investment officer and former NYSE firm partner with 50 plus years experience in field as analyst / economist, portfolio manager / trader, and CIO who has superb track record with multi $billion equities and fixed income portfolios. Advanced degrees, CFA. Having done much professional writing as a young guy, I now have a cryptic style. 40 years down on and around The Street confirms: CAVEAT EMPTOR IN SPADES !!!

Thursday, September 22, 2011

Gold Price -- A rescue From The Bugz Is Needed

Gold broke $1750 oz. short term support today. The RSI (chart link below) is trending down
rapidly and is now around 60. The bugz have come to the rescue during this bull leg since late
2008 primarily around 50 RSI. The next sensible strong base of support is down around the
spring 2011 break out level of about $1540. The market remains moderately overbought
at 13.8% above the 40 wk m/a. The bugz will have to wave off the recent double top and the
Fed's pass on more QE along with the continued procrastination on the next tranche of the
Greek bailout package. It is stunning the market is still overbought in the intermediate term.
But let's watch to see if a rescue is on tap over the next several odd trading sessions.

Gold Chart.

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