Below is a very revealing 4.5-year chart from John that you won’t see anywhere else – it shows how the CDNX and Gold have performed through each round of the Fed’s “QE” programs.
As you can see, the Venture Exchange is well positioned right now for a MAJOR move to the upside through the remainder of 2012 after QE3 was announced Thursday. Starting in July, both the Venture and Gold correctly began to anticipate new stimulus measures from the Fed and the bullish signals got stronger in August. And not only is the Fed putting the pedal to the metal, but so too is the European Central Bank as well as other global central banks. The Perfect Storm has probably arrived.
While many investors had anticipated a new round of easing, the Fed’s declaration that its bond-buying effort will be open-ended and linked to sustained improvement in the labor market was surprisingly aggressive. Previous rounds of so-called quantitative easing had set ending dates.
During QE1 and QE2, the Venture shot up into strong overbought territory and stayed there for a while. At the moment, RSI(14) on this long-term weekly chart sits at just 49.54 which leaves plenty of room for a move higher in the Index. Trading volumes have picked up considerably in recent days and that’s very bullish. We’ll have more on the Venture in our Week In Review And A Look Ahead later today.
Terry
Thanks for that, but what i don’t understand is how i could see it, before
i couldn’t see it, anyway, it’s forgotten & full speed ahead…
The past two trading days have been comforting & although the lowest of the
lowest stocks didn’t rise with the market, our day will come. It takes time
to build confidence but confidence will return, if i am an indication, i feel
more confident today than i did two trading days ago. It’s all about trickling
down & trickle down it will. Theodore will make a profit, he will get excited
& tell his friends, what an easy way to make money, his friends get the urge,
they try & succeed & tell their friends & while all this is going on, i prepare
to sell using anonymous. Have a good weekend. R !
Comment by Bert — September 15, 2012 @ 12:11 pm
I don’t know either, Bert, I will be checking with the technician, but thank u for pointing that out and my oversight.
Comment by Terry - BMR — September 15, 2012 @ 12:40 pm
If you are interested in small Silver juniors close to production, take a look att Xtierra (xag,v). Nice recovery the last 2months. From 10c to 39c yesterday, closed att 37c. I guess the infill drill results was approved by the markets. Mr Sprott is involved and the company is not far off from starting up production. Right now they are working one a feasibility study to be completed soon.
Maybe an alternative to RBW, do not put all your eggs in one basket.
Comment by 400yards — September 15, 2012 @ 11:29 pm