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Still More Deflation
November 11th, 2008 at 11:17am · No Comments
The DJ-AIG commodity index and the daily gold chart both made bearish range-bust reversal bars yesterday. Gold is following through with a minus 18 dollar day today. The gold chart below shows a bear flag formation which projectst o $550 per oz! I’m not sure it can go that low. But $650. is definitely doable. Oil is under $59 today as well. The deflationary liquidation of assets continues. Long-term gold is a buy, but we’re not there yet. The leveraged longs must be forced out before a bottom can be put in.
Tags: S&P 500
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