Greetings Jim,
The Gold Currency Index has quickly returned to recent all-time highs following the sharp correction last week, indicating that the current uptrend has significant buying support. Technical indicators are slightly bullish overall, and period of consolidation is the most likely scenario over the near-term, although another long-term breakout is certainly possible. Once again, the GCI is positively diverging from gold in US dollars as the latter remains well below its recent all-time high.
Best,
CIGA Erik
Prometheus Market Insight
http://www.prometheusmi.com
Click charts to enlarge
5-Year Note Auction Results
CIGA Eric
Yet another treasury auction that can only be classified as “it’s not a problem until it becomes a problem". Direct bidders, anonymous and impossible to track, took down 15% of the total accepted bids. This is a big number that as little as a year ago was running 1-2%. The rising trend towards direct bidder purchasing raises the logical question of who and why? It really doesn’t much to come up with an answer to that. As long as no one is looking, it’s simply not a problem…yet.
5-Year Note Auction Results: ![clip_image001[1]](http://4.bp.blogspot.com/_m5i6pLhlNWU/S_1WQJGYALI/AAAAAAAACJA/bpY1LaRW698/s1600/5YR.JPG "clip_image001[1]")
Source: treasurydirect.gov
Jim,
In the words of your father’s trading partner, the late legendary trader Jesse Livermore…
"It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight!"
CIGA "The Gordon"
Gold
CIGA Eric
Test of the 5/6 gap, A to A, occurred on a big reduction of volume. This suggests a bullish setup.
Now the 5/19 overhead gap, B, is pulling hard. A break above that and 12/4 resistance on a sign of strength would be extremely bullish for gold.
Gold ETF (GLD): 
Jim Sinclair’s Commentary
CIGA Anton shares his views on equities versus gold and real values.
DOW/GOLD
How is the stock market performing? It all depends on how you measure.
When measured in US dollars, the Dow currently trades approximately 28% below its all-time record high.
However, when measured with that other world currency (gold), the picture is even more bleak.
To help illustrate the point, today’s chart presents the Dow divided by the price of one ounce of gold.
This results in what is referred to as the Dow / gold ratio or the cost of the Dow in ounces of gold.
For example, it currently takes 8.5 ounces of gold to "buy the Dow." This is considerably less that the 44.8 ounces back in the year 1999.
When priced in gold, the US stock market has been in a severe bear market for the entire 21st century
OECD paints glowing picture of Canadian economy
CIGA Eric
The Loonie will achieve parity or better than the U.S. dollar soon than most expect. This does not, however, mean the Canadian dollar is a safe haven relative to gold. All fiat remains in a race to the bottom.
The Canadian economy is particularly strong this year, aided by a healthy banking sector and low government deficits relative to its competitors, according to the Organization for Economic Co-operation and Development.
Source: financialpost.com
Jim Sinclair’s Commentary
As we said when we were kids in grammar school, I double dare Moody’s to downgrade the USA’s debt and try to live through it.
Moody’s Reiterates U.S. Spending Risks Credit Rating (Update1)
CIGA Eric
Talk is cheap. The US government’s credit rating has become an issue of national security. Don’t expect a proactive downgrade unless it is planned.
The U.S. government’s Aaa bond rating will come under pressure in the future unless additional measures are taken to reduce projected record budget deficits, according to Moody’s Investors Service Inc.
Source: bloomberg.com
