Dear CIGAs,

My view, and I never trade the wiggles, remains the same.  The setup in the gold stocks looks solid.  When the time is right, and the window has begun to open, they will take out their 30-year consolidation pattern with conviction. We might have to wait until the start of the C-wave, but that remains to be seen.

The Fed is a mouthpiece of standardized quips that provide zero information in terms of anticipating market direction. Their actions/policies, contrary to popular opinion, follow rather than lead the market.  In other words, I could care less about the Fed meetings or pronouncements.

Capital will continue to follow confidence. As long as devaluation and confidence continue to erode within the periphery zones of Europe, capital will first seek safety, then increasing risk in areas deemed comparatively safe or safer.

The comparatively safe areas, such as the US, however, are anything but that. If perceptions change towards recognition of that risk, which is known only to the mindset of the mob, another haemorrhage phase could arise when time is right.

Do not confuse a rising stock market environment as an indication of economic stability or improvement. The Weimar Republic model illustrates how financial and social pain can be associated with a rising stock environment.

Regards,
CIGA Eric