KANGAS: You have been correctly bullish on the stock market in general and gold in particular. We've had a heck of a run on the stock market since March with the Dow soaring from 6500 to 9800 level. Is it time for some profit taking in stocks here?
LEIBOVIT: It appears so. We've been in an upward channel since March, looking at the Dow industrials. There's a risk perhaps of a pullback to 9,000, 8900, maybe, but it's still an upward channel. And the work basically says we're in a bull market here which could last a lot longer and go a lot higher. We're finding that wall of worry Paul and some of the technical work we're doing, particularly a reverse head and shoulders pattern that we put together here on the chart shows potential even as high as 11,003. Originally I was talking 10,300, which was half of that 7700 point decline that we saw from the beginning of the bear market. So any pullback here in October, November, would be a buy for a move to that higher level I think some time into next year.
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KANGAS: All right. So still bullish long term on stocks. Now, you have been extremely bullish on gold, predicting last April it would go from around a $900 per ounce level then, to $1,000 an ounce which it did early this week. Good call. Where do gold prices head now?
LEIBOVIT: Well, we've only started, Paul. There's also reverse head and shoulders measurement in gold up to about $1300 and you know I have a bigger picture number up at $3,000. But our annual forecast model for gold pretty much pinned it all year. It was calling for a high here in the September time frame and then maybe a little pullback. I think that's what we're starting to see now a little bit of a correction in the gold. And then I see it breaking through and the 1,000 level is going to become the floor and we're going to start moving up and up into those higher levels I think into next year.
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