Reality Check on some of my older Posts - Stock Market Rally, Gold and Crude Oil

When we stop and are thinking, we often miss an opportunity. That is what has happened with many of us in recent market rally.

S&P touched a high of 1100, a rise of 62% from its March lows. I did mentioned this in my article dated August 18th . This was the first leg of the bullish trend, and if someone says that because he is smart so he did not invested and that smart guy should answer me, on how can 62% rise was just a test phase. Investor or Trader if good can not miss 62% move and should be part of atleast half of the first leg of the new trend.

Crude Oil:- On June 13th I mentioned that Crude Oil is in bullish Uptrend, however just be cautious. It was trading in the range of $65-70 and recently it touched the high of $82. Now that is an enough move to confirm the point I was making. From here if Crude closes above $83, then it possess a strong chance of entering the triple digit zone in the next upmove.

Gold is a story in its own peril. Perception is that gold is being bought as an hedge against inflation. However the major reason is, emerging economies are considering parking their reserves in something other than USD and Gold to them seems a valid and tested option. Proof of it came when last week India bought 200tons of Gold from IMF. I mentioned this on July8th, that if by any chance Gold crosses $1000 level, then we can see new era of Gold prices. I currently see it taking a shot at $1300 levels. It might take months or a year, but those levels are quite evident.

Once again I would say, that " When we stop and over think, we often miss an opportunity"

Why Gold is Gold and where is it heading?

I hear lot of people talking that, why Gold is so precious, why people talk so much about it when it is just like any other metal from earth!!! Apathy is I have heard even some of the most intelligent people and Gold Traders talking this. Let me through some light on it.

Gold is precious because of its stable chemical properties.

Let me clear few points about why Gold enjoys the status of Gold!

Gold is among the least corrosive among the metals. It is most malleable and ductile metal. 1 ounce (28 g) of gold can be beaten out to 300 square feet. Gold kept at home for 100 years will weight almost same.Whereas, other metals like iron will corrode and lose weight as well as properties. We need to keep iron etc polished to save it from corrosion but not gold. This was one of the important reasons of Gold being chosen as the reserve currency in old times and even today.

There is no other stable metal that can replace gold.

Now coming to Gold bubble.

Gold has tried to cross $1000 level and has formed triple top. It is slipping of its support bed and level of $875 is very important. If Gold breaks this level, then it can head further down. However, if by any chance Gold crosses $1000 (very distinct possibility in near future), then we can see a new era Gold prices.

Hope it helps on knowing why Gold is Gold.