Final Capitulation!

Published by Léonard Sartoni | Oct 6, 2014 | Articles

Bob Moriarty tells us, in this latest commentary, that parabolic moves always end in capitulation.

"When an earthquake strikes and a tsunami forms, the water doesn’t come in at first. It goes out. The further out it goes, the bigger the tsunami on the way."

And this is exactly what is happening with the dollar today!

An inverse silver chart resembles a dollar chart, in a parabolic ascent:

 

 

 

A parabolic ascent ALWAYS ENDS VERY BADLY. Here we see a major peak for the dollar and a major trough for silver being formed.

 

 

I also have the feeling that we are experiencing the mirror image of silver’s 2011 parabolic ascent. Not on the chart, but as far as sentiment and annihilation of bulls go. Sort of a self-feeding loop that will last until THE final capitulation. For a vast majority, THE final bulls’ capitulation will occur with a $1,000 trough for gold and $15 or even $12 for silver. At the very least, this is how all of those who have already capitulated, waiting for the “buying opportunity of a lifetime”, are thinking. But is the market into a habit of giving the majority what it expects? Stocks going up until retirement? Gold coming down to a level where EVERYONE wishes, giving the opportunity to buy it back well below its production costs, for peanuts?

Bob Moriarty thinks that the final capitulation happened last Friday. I can also attest, for my part, that I’ve never seen so many negative articles on gold. NEVER! Even on gold websites. Hatred toward gold and gold miners is at a maximum. It seems some people are settling some accounts on the web and lots of participants are disgusted! And, as these capitulations self-feed, it seems the market is becoming totally nuts! I think we are in full final capitulation already. Platinum, again, just lost $35 in a few hours last night, on totally insignificant markets, which is not shown yet on StockCharts platinum chart, but this could very well be the tip of the final capitulation peak. Look at RSI’s HISTORIC daily level!

 

 

 

 

Is it possible to go even further into this panic selling which now seems to feed itself, with long-term investors capitulating? Sure, but I still think that the manipulators’ goal was to bring back gold and silver down to their major respective supports BEFORE the smash-downs. Gold has avoided crashing because it was too far from its support. There is much more relative strength in the gold market. Many investors are not taken in so easily. When one sees the extreme and untenable situation on the silver and platinum markets and, above all, for the dollar, I reckon there are not that many bullets left for the paper sellers! Those signs are reliable. If gold were to break down, I think it would break down only marginally.


Reproduction, in whole or in part, is authorized as long as it includes a link back to the original source.


Léonard Sartoni  Independent Contributor

   

My articles


See our selection of gold and silver bullion

Shop Now