What's Up With Gold?

What’s Up With Gold.

Those who are unfamiliar with our model will find that especially as we go into year-end, markets have a

strange attraction toward our year end numbers. In the case of gold, the strange attractor is $1405.50.

Our model also suggests that support in 2012 will be found at 122800, with long-term support at

8575.00. I have been warning that it is time for a pause. So many hate when I say that, their heads turn

a full 360° and out comes the green spew that greenbacks are fiat currency and how gold just can never

go down. Gold fell 1975-1976 and 1980-1999 when the currency was still fiat. It means nothing.

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Since the Yearly Bearish Reversal lies at $1058.00, only a year-

end closing beneath this area would signal a prolonged decline

into 2013. Our Yearly Bullish Reversal stands above the market

at $1704.20. Therefore, only a closing ABOVE that would

suggest a continued uptrend short-term.

In order for markets to move, the internal mechanism is always

like a pendulum. Whenever a market becomes excessively

bullish, the internal energy is then set so that the market once

it reaches the point of maximum ENTROPY, has become tired

lacking a new crop of bulls to come in and take it up further.

This is the point when we see the

SMALLEST AMOUNT OF

SELLING PRESSURE AND CAUSE THE GREATEST

AMOUNT OF CHANGE. It is NEVER

that some huge

short player has entered the market and forces it down. What happens is everyone is long expecting to

be rich counting their profits but lack further buying capacity. Thus, the SMALLEST amount of selling

pressure can then move the mountain of tired longs forcing the weak longs to now sell shaking the

confidence of even the steadfast. The sharp increase in selling pressure is not conspiracy theories

generated to create some fictitious group so powerful to explain why the analyst is wrong. Stories that

gold has not rallied because of paper gold v real gold are other stories spun to explain mistakes. All

commodities trade the same way and contracts can outnumber the supply for it is future delivery not

actual delivery being traded. Your family can have a life insurance policy on you, and you job can have

key man insurance on you as well. However, there is only one you. This is NOT the reason gold has not

rallied. The real reason is people want

to be optimistic and are not ready to

accept that the world is crumbling.

This is why gold is falling. The weekly

closing below $1605 will confirm what

is coming down the pike. There just

has to be a cleaning out of tired longs

who have been sitting there counting

their profits like chickens based upon

unfertilized eggs. All the indicators

have been warning that a correction is

coming. The fundamental mantra

about fiat currency is getting old. The

market is poised for retest of the

1225-1325 area going into 2012 which

is the key support.

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December should have been a Directional Change. So far that looks to be on target. The Indicating

Ranges for December are MOMENTUM 198010-163800, TREND 153950-107200, and LONG-TERM

TREMD 163700-132870. This shows that the first level of support is at $1539, followed by $1328, and

$1072. The Yearly number of $1405 also provides important underlining support.

The Weekly Bearish Reversals to now watch after 1604.00 are 1522.00 1405.00. As it currently stands, a

decline into January is the most likely course of action. We can see a intraday low form in February,

however, January is still likely to be the lowest close.

The world may hold together until June. From then on it appears to be starting to go nuts going into

2014. We will have that worked out with the yearend closings and will be provided in the special reports

on all the markets written by the computer that should be delivered by January 15th

laying out the

prospects for 2012.

pg_0004

It is Not Fiat You Need To Fear –

It is Government Itself

The latest census shows that 1 in 2 people have slipped in

America and are poor. The tax burden has risen and this idea of

socialism has amounted to a charity that costs $9 out of $10 to

function. It is now government itself that is the beast consuming

everything, not the poor who get table scraps. After the Arab

riots in Iran and how they used the internet to organize, I

warned that those in Washington in the unelected backrooms

were shaking in their boots and would eliminate that threat in

the USA.

The bill was introduced to allow the President to shut down the

internet in case of a terrorist attack. You do not need to shut down the whole internet for such

nonsense. It was to choke off the ability of the people to organize. Now McCain of all people is the

instrument of the total destruction of the United States. There is NO reason to authorize the military to

operate domestically allowing tanks to roll down the streets arresting people without trial that amounts

to anyone who disagrees with the current administration.

These people are traitors to LIBERTY. They are setting the stage for what they know is coming. Massive

revolts when they cannot pay the promises of socialism precisely as we see in Greece and other places.

The troops will fire upon citizens just as police have attacked those who have peacefully protested. The

people are being transformed into terrorists that are defined as anyone who disagrees.

Ronald Regan said it best. We have lost everything worth living for. We have erected the new Berlin Wall

and soon you will lose your freedom to leave.

Watch the Youtube Video

It is not fiat currency you must fear. It is government itself. We so desperately need REAL political

reform. We need TERM LIMITS not life time politicians who cannot separate themselves from the

people and look down upon us as prey. We need politicians who MUST return to the ranks of the people

so that they would NEVER pass such an act against themselves. It is self-interest that is the check and

balance – nothing else.

Our logic is really messed up on terrorism. It is like that on ICE.

When you drink vodka over ice, it can give you kidney failure.

When you drink rum over ice, it can give you liver failure.

When you drink whiskey over ice, it can give you heart problems.

When you drink gin over ice, it can give you brain problems.

Obviously, ice is really bad for you.

pg_0005

19 guys and a camel have given the excuse to the unelected backroom dictatorship that control the

politicians like puppets. They give them a cookie and they will introduce anything. Senator McCain must

be a moron. There is no other explanation. RETIRE and get the hell out of government!

So if you want to know why gold will eventually go up. It ain’t the fiat. Try good old fashion security from

the enemy within.

Conference Attendees

The Conference Attendees will receive the update service covering these 5 categories. As soon

as we have the year-end closings for 2011, we will be providing the computer generated

reports on the main markets providing the outlook for 2012 including the Timing Arrays for the

year and Reversals.

Shipping Date should be by January 15th.

(non-Attendees $1,250 for the set of five)

Send payment to Armstrong Economics, Two Penn Center, 1500 JFK Blvd, Phila, Pa 19102