A Short-Term Pause - Mike Swanson (09/19/12)
I've mostly been writing about the long-term trends of the market. Back at the end of July I started to talk to you about how cheap the valuations are in global markets outside of the United States and how bull markets seemed to be lining up to start there and in gold. And then I began to buy and show you exactly what I was buying, how much, and when. And things have gone up. New bulls have started just about everywhere.
I haven't said a whole lot about the short-term moves though. It looks to me right now we are seeing a little pause. Take a look at this chart of gold.
Gold has been on a terrific run as it broke into a new bull market last week. We have seen two quick pauses during this time. I think we are right now going through a similar very short-term pause and will see another move higher for gold and most other world markets for that matter next week. It could start this week even.
I do think at some point there will be a big pause and consolidation period, one that will last for 3-6 weeks. But I don't think we are at that point yet and it probably won't come until October or November.
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