Morning Gold Fixing: Bernanke: “Catastrophic” Implications for U.S. Economy If $14.3 Trillion Debt Ceiling Not Raised 

 

Bernanke Says Everything is A-OK (Other than Employment, Non-Core Inflation, and Anything Else That Makes a Healthy Economy)

 

Persons Not In Labor Force Who Want Job Now Jumps To All Time Record; Real Unemployment Rate At 12.8%

 

Underemployment Divergence: Seasonally Adjusted U-6 Drops To Two Year Low, As Non-Seasonally Adjusted Surges To One Year High

 

Labor Force Participation Plunges To Fresh 26 Year Low

 

NFP +36,000, Huge Miss To +146,000 Expectations, 9% Unemployment, Not Seasonally Adjusted U-6 Surges From 16.6% to 17.3%

 

Name That Lie: Recent Fedspeak Soundbites

 

Frontrunning: February 4

Submitted by Tyler Durden on 02/04/2011 08:11 -0500

• Fed Denies Policy Is Causing Food Rises (FT)
• Pressure mounts on Mubarak to go (FT)
• Algeria to Lift Limits on Liberty (WSJ)
• Merkel Turns Crisis into Opportunity to Reshape Euro Zone (Bloomberg)
• And finally, it is mainstream: Rising Commodities Put Profits Through the Wringer (Barrons)
• Storm Battered Australian Coast (WSJ)
• Boeing Loses Half of Dubai Aerospace Order for 737-Model Jets (Bloomberg)
• Virginia to Ask Supreme Court to Rule on Health Law (NYT)
• Are the ultra rich starting to spend less: LVMH Falls After 2010 Operating Profit Trails Estimate (Bloomberg)

 

Jim’s Mailbox

Posted: Feb 03 2011     By: Jim Sinclair      Post Edited: February 3, 2011 at 10:25 pm
Filed under: Jim's Mailbox

Greetings Jim,
We have been monitoring the gold market closely for the past several weeks in anticipation of the development of a meaningful low, and today’s sharp move higher was a bullish signal that suggests the anticipated low may be in the process of forming right now. Gold closed well above resistance at the upper boundary of the downtrend from early January on the daily chart, confirming the start of a new reaction.

From a temporal perspective, we are 5 trading days into the cycle following the Short-Term Cycle Low (STCL) on January 27, and today’s move up to a new short-term high is a bullish sign that indicates the current cycle may be right translated. If the developing reaction continues to strengthen and consolidates the gains of the past 5 sessions at current levels or higher, the bullish translation will be confirmed.

However, the most important potential development relates to the intermediate-term cycle. We are now 27 weeks into the cycle following the Intermediate-Term Cycle Low (ITCL) on July 30, and 90% of all intermediate-term cycles are less than 23 weeks in duration, so the next low is well overdue.

A strong close tomorrow would create a bullish engulf pattern on the weekly chart, signaling that the latest ITCL very likely occurred last week and forecasting additional gains during the next 2 to 3 months.

Best,
CIGA Erik McCurdy
Prometheus Market Insight
http://www.prometheusmi.com