Gold Cycles April 15, 2013

Gold

We’ll mention Gold first after the big precious metals slide on April 12^th. Many pundits are now out calling for the end of the Gold bull or at least much lower prices. After the last few weeks they may have a point. Others, including me, are concerned we may be heading into a deflationary period. Although not mentioned I believe this is the FED's biggest worry and why they are, in effect, printing money to the tune of 80 billion per month.

There are two cycles for precious metals I follow which are due soon. These are the 89 week (21 month) and 144 trading day cycle. There charts follow.

89 week – due late April / early May as a lower high (note; some have this as a lower high in June) remembering cycles sometimes invert.

144 td – due May 6 +- a few trading days

In addition to these cycles there are longer term cycles that may be hitting. Please review the January 1, 2013 post and look for comments and charts for Gold. Following is an update to the chart first posted on January 1^st. This current fall may be the formation of the 4.25 year low. If that is the case we may see more downward pressure before a sharp reversal higher. Technically this looks quite bearish. I'll be looking for a bounce once the downward pressure eases. Precious metals will now have to prove they are turning bullish as the current charts look quite bearish.

From the above cycles we may get a short term reversal in Gold and Silver and see them put in a lower high before they fall further.

SP500 

Major indices are still headed up but I'm looking for a 5%-15% correction. There are a number of oppositions to Saturn coming up and a Lunar eclipse on April 25. I'm looking for the start of a turn down before or on April 25 the day of the Solar eclipse.

The Saturn oppositions are:

April 22 Venus opposition Saturn

April 28 Sun opposition Saturn

May 1  Mars opposition Saturn.

You may recall Saturn is in mutual reception with Pluto making it stronger than normal. Saturn is in the intense sign of Scorpio. We'll be feeling the effects of the Saturn quincunx Uranus on April 12 for some weeks.

One other aspect worth noting is the Sun conjucnt Mars on April 17.

Let's not forget the long term transit of Uranus squaring Pluto. The next exact date is May 20 but their effects are felt right now. Mercury will be translating this square on April 20nd and 21st.