Planet Yelnick got a good plug from The Wall Street Journal's MarketWatch over an analysis by our frequent guestposter Yves Lamoureux, president of Lamoureux & Company, a market advisory firm based on behavioral economics. Yves has come back with a new update on gold. He made a prior prediction (in this blog) that turned out to be prescient. Now he is back with a new update:
Yves on Gold Update Part 2
We are amazed that a 2 months bounce can create so much attention on gold. We feel this is misplaced as oil is the asset that best gives out conditions of the macro environment. We suspect that few would entertain an Asian and European growth pick up at the same time. We do as we wrote recently.
All eyes have been focused on the economic negatives as the market demonstate a tendancy to go exponential more and more.
We think that the next few years will be terrific for stocks but these trends will be best explained as behavioral trends
Gold has perfectly set out to bounce in a typical corrective fashion. Any good Elliot Wave technician will know what to expect after an ABC bounce: new lows ahead.
After the big gold drop, as expected, targets were lowered to 1000 $. How convenient is it to know this after the fact?
We kept you protected by issuing to avoid at all cost the metals early in the year and have stuck to our scenario all year. We knew that gold would bounce and be unruly after the analysts adjustements. So here it is with a 2 months bounce, the same behavior comes out of the woodwork as we suggested would happen.
In a certain sign of defiance talking heads are back claiming that gold will rally. We are sure to dissagree with this at this particular juncture.
We therefore forecast gold to head to 1000 $
Our proprietary model has flashed a third signal here and now. Both signals this year had preceded large drops.
We remain massive gold bulls long term. There will be no alternative to credit default in the future.