To celebrate the opening of our BBTL blog, and in our effort to further public education and literacy in how the financial markets "really work", we have decided this Canadian Thanksgiving weekend to publish a special mini-feature on Gold.
Although we obviously cannot include our proprietary KRTT gold cycles, or intricate forensic details of all financial engineering methods taught by KRTT to paid clients, this editorial will introduce and feature several examples of KRTT analytical insights into financial analysis that any financial enthusiast, investor, or trader would enjoy.
Moreover we say boldly, we believe our forecast of a coming gold sell-off, and the methods taught and introduced herein, are vastly more accurate, more revealing, and considerably more honest than any gold forecast made while listening to your Wall or Bay Street financial adviser. Why? Frankly, because they and the vast majority of investors including professionals, fail to understand or comprehend how and why financial markets act in exact accordance with cycles, science, and Natural Law.
Equally, we believe our methodology presented herein is also superior to so called expert economic supply-demand reports on gold by government, investment banks, or brokerage firms, and especially the global financial noise factor and gossip surrounding which way the next move in gold will be, or when it might come. All of these sources claim to know far more than they really do.
Naturally as gold goes, so follows gold equities which have a positive correlation to the commodity. So even if you own gold stocks, or have some related interest in this precious metal, you will not want to miss out on what we have to say herein, while equally gaining valuable financial education that can be used over and over.
To begin, as we near the bewitching season of Halloween (Oct 31st), we would like to strongly suggest that cyclically around Halloween each year, gold too can show a potent bewitching cyclical pattern. At first glance, this pattern might appear strange or an unusual behavior, especially to those not trained in cycles as the primary causal factor to all trend changes. We intend on taking you well past that level eventually, so for now, be patient and open your mind.
Expressed more clearly and perhaps as the great W.D. Gann might say, around the cyclical time of the zodiac known as Scorpio, gold and gold stocks show remarkable volatility and even powerful changes in trend (CIT) that can be traded and profitable to those so aware. Admittedly, without knowledge of this cycle behavior most global traders and investors could soon feel in hindsight, as if they had been stung by a Scorpion (Scorpio).
Hopefully in 2010, those of you lucky enough to come across, read, understand, and apply the methods taught in this educational feature about a very real gold cycle phenomena, will be better prepared to profit.
We have a lot to learn - so let's get started.
Many of you, and potentially all those new to financial Astrology*** as first taught and introduced by W.D. Gann, may already be skeptical and wondering how Astrology or insights into planetary Astronomy can help you profit financially. For now you will simply have to trust, as you begin to learn how to apply Financial Astrology properly, which frankly, only a rare handful of Astrologers of Financial managers ever achieve.
Over time, it will be up to you to decide how to handle this additional esoteric education, as Financial Astrology is indeed daunting to most and thus easily discarded by the ignorant. The good news that we will tell you up front, is that Astrology or Astro-finance is just one form of powerful Natural Law.
KRTT teaches Natural Law and cycles, as advanced foundational material to clients, after they first learn technical analysis, so as to better understand how markets really operate and as invaluable cycle information for forecasting and confirmation of trend changes***
2. Elliott Wave (EW) - Far more widely known in today's financial circles and used by the savviest of financial analysts is Elliott Wave theory.
As we have stated here before, EW too is a form of Natural Law. We have also placed labels on the Gold chart of the Elliott Wave (EW) Pattern as now in progress. Anyone familiar to EW should immediately get defensive or even scared of what they see. Why? Well, we are approaching the potential termination of an infamous wave five when trend changes are known to occur under EW theory.
More important there now exists, a fairly well developed five count up from the large pivot point CIT bottom made in gold during the sub-prime crash. This dictates that the impending EW wave top could become even more important to acknowledge.
3. Time and Price Square - Finally, using yet another geometrical form of Natural Law, we have further shown using arrows, how over the approximate last two year period, the price in gold has now doubled.
This too, is another simple way of showing a mathematical relationship that Gann first introduced, as he educated that cycles are most prone to change, when time and price act in squaring harmony.
What KRTT has advanced beyond Gann here, is simplifying the Gann squaring concept using raw time can make clearer, the powerful concepts Gann introduced and taught to those whom had open minds. Frankly and sadly, few listened.
Education wise, virtually all success is first derived from an open mind and the application of education gained through standing on the shoulders of giants. The concept of confirming one's financial analysis by using other distant and less correlated, or inverse correlated markets, was first taught by John Murphy in his book by the same title. John himself as we have stated elsewhere, is an extraordinary giant in the technical analysis field.
Most of you reading this blog, already likely realize that gold has been a quasi-currency since the dawn of civilization.
It is well known that currency traders and powerful Central Bankers watch gold. Today, the global currency of choice is still the USA dollar, and the USDX or USA Dollar Index is a weighted index or basket of major world currencies - measured against the USA dollar. The prime currency in that basket is the Euro, but several other currencies are included such as the Yen, the Pound, the Swiss Franc, the Canadian Dollar and a few more.
We also should acknowledge that Ben Bernanke at the US FED, the USA Treasury in close co-operation, and a whole hosts of undisciplined USA and patsy global Politicians have been greatly abusing their global position of currency power.
In the case of the USA, this is measured in trillions of dollars of monetization, or greatly expanding the USA money supply, and debt as a future burden and building currency problem to the end USA taxpayer.
Make no doubt about it, these prolonged sub-par interest rates and enormous money expansion factors are already the prime cause of the USA housing crash, and the Sub-Prime financial crisis, and moreover they are correctly explained using the KRTT theory of Man Made Cycle Upset Mechanism.
This USA policy of massive stimulus, bailouts, and mega money-printing has also contributed to the ever growing old gold bull market cycle, and the longer term ongoing devaluation of the USA dollar - always a debilitating and dangerous sign of economies that are failing, and Central Bankers whom fail in their fiduciary duty to protect their monetary unit.
This cycle is now more than eleven years old in the herein acknowledged gold bull market, which in our KRTT viewpoint began on or about August 25th, 1999.
Therefore by applying inter-market analysis, we have labeled and included the US Dollar Index chart, that too has an inversely similar pattern and the first warning signs of an impending inflection point, of at least a temporary market bottom in the USDX as well as an EW count that is logically inverse to Gold.
The implications of the USA Dollar chart analysis herein (chart below - click to expand), is that it is confirming our included Gold Analysis that we are potentially nearing an important inflection point in time, whereby gold and the US dollar index could rapidly begin to change their trend.
5. Other Verification - No Premium - One of the fairly simple things an investor or trader can investigate is premiums on futures contracts as they go out farther in time. There is no opinion about futures contract premiums, as they are simply a state of fact at any given time, making them an important and superior form of data over opinion, or interpreted and usually extrapolated data.
Normally in strong bull markets, the farther out the future contract, the greater the built-in premium. This is usually called the normal time premium similar to options premiums. At the current time with gold futures, notice that there is virtually no premium for buying a contract into the future.
Again, as this constitutes a fact about current gold premiums in the futures market, it sets the record straight that the bullish argument of higher or often in the media - vastly higher gold prices is clearly and factually wrong according to all of the futures held including the largest of hedgers to the smallest of speculators.
Anyone that thus espouses a strong or even mildly bullish argument about higher gold prices has no present evidence of such bullishness based on the current future premiums being charged.
6. Gold Summary - In conclusion, for those whom fail to understand and incorporate Natural Law and cycles into their trading and investing analysis, we are approaching a seasonal time in the Zodiac of significant peril in gold, gold futures, and related gold equities. Correspondingly, traders and investors relying on the past trends in the USA dollar, the USDX (dollar index), and other currencies inversely related to gold may also be in for trend change surprise.
Given the widespread misinformation about gold, and the extremely rare analyst who correctly incorporates Natural Law and cycle truth into their methods and trading, this could well constitute the vast majority of global financial professionals and amateurs, as soon becoming stung by a scorpion.
KRTT clients in contrast, were taught the included methods and other more potent cycle analysis methods based on Natural Law years ago. Again our KRTT clients were warned weeks ago, that beginning around the weekend of October 22nd - 25th, 2010, or Astrologically around the time of the next October full moon which coincides with the beginning of Scorpio, the current strong bullish trend in gold should change direction in accordance to our discussion herein.
Time will eventually tell and witness into evidence, whether such analytical methods, cycles, and other methodologies developed by KRTT, act out financially in accordance with Natural Law as they are tested time and time again, and become verified by a modern computerized world, exactly as the great W.D. Gann attempted to teach and educate Wall Street, over 100 years ago.
We must caution however in advance, despite our very high certainty in this gold forecast as outlined herein, that even the best of cycle and financial analysts can witness man-made inverted cycles, which are explained in other KRTT teachings, and are equally explained in EW theory by R.N. Elliott as wave extensions.
When cycle inversions or EW extensions are caused in financial markets repeatedly in such circumstances, the trend will unexpectedly and artificially continue, only until it eventually becomes so inefficiently priced, and so exhausted or extended, it rapidly collapses by the past constant over-stimulus of man-made upsets.
This would be similar to a person going without any proper sleep or rest for a prolonged period, due to artificial and over stimulation, until the person cannot stay awake any longer, and collapses in dire need of rest.
One should never doubt the obtuse nature of the US FED and equally greedy global central bankers to ever expand money supply and print money, in their deliberate devaluation attempt of the USA dollar or other currency. Perhaps one day, America will understand the foresight and wisdom of USA Texas Republican Dr. Ron Paul, and his audit and stop the USA FED movement.
7. Esoteric Challenge Only - For those up for another challenge, and mainly to those whom potentially have heightened or advanced financial Astro-timing skill levels, and interested in incorporating Astro-finance into analysis, we have included an Astro-Sky chart of the date in 1999 when KRTT believes this current eleven plus year Gold cycle bottomed.
Notice the extremely harsh 90 degree planetary angles and malefic Astrological nature of the chart, exactly in line with W.D. Gann angle theory and considerable formal Astrology teachings. Using this same information, can one find the Astro Sky Chart of when Gold might peak in the future? If so, please leave a date or comment for others to see here on the blog.
James Kelly Sr.,
Editor in Chief
www.KRTT.com
www.Facebook.com/KRTTcom
www.twitter.com/KRTTcom
*** Although KRTT has discussed considerable Astro-Finance and Astrology in this feature as first introduced by W.D. Gann over one hundred years ago, and also in that we teach detailed Astro-Finance and Astro-cycles to our clients, we do not profess to be Astrologers, nor do we endorse or use Astro-finance as a stand-alone method to trading or investing.
We do however strongly endorse and teach such Natural Law theory, including Astro-finance as an extremely valuable method of market confirmation.
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