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Message: Market Force Analysis Flash
MARKET FORCE ANALYSIS FLASH
NOVEMBER 2, 2008
By Adrian Douglas
The Market Force Analysis is indicating a perfect storm for the precious metals and prompted me to release this flash.
GOLD (Figure 1)
The MFA for gold (red line) exited the bottom of the channel recently but has now bottomed and turned upward. This is exactly the same as happened in June of 2007 before the big run up to $1040 as shown by the two blue ellipses. This is extremely bullish.
Gold is trading at $730 (the price of gold is shown as the black line).
FIGURE 1
US DOLLAR (Figure 2)
At the same time as the gold MFA has bottomed the MFA for the dollar has topped (red line in figure 2) just as it did in June 2007 (see blue ellipses). In fact the gold MFA bottomed and the USDX MFA topped on exactly the same day which was June 12, 2007 and now they have repeated that feat on October 31, 2008.
The USDX is trading at 85.6 (the USDX is the black line in figure 2).
This appears to be a perfect storm where the fundamentals of gold will get reinforced by a rapidly falling dollar. There may not be such a good buying opportunity for quite some time.
FIGURE 2
We are working diligently to go commercial at Market Force Analysis and hope to have news on the launch date soon.
Adrian Douglas
November 2, 2008
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