QE3 & The Technicals First of all guys i do not believe that the Fed will start tappering until after the New Years simply because of the Christmas Season. The government and the federal reserve want to promote the best possible numbers for Retail Sales. Expect some tappering in the New Year. It might take a couple of tappers by the Fed but they will find out very quickly that they can not pull it off. Markets, realestate and car sales will plumet and very quickly the Fed will realize that they can`t take away any of the punch bowl they have created. Not only that, the Fed will have to increase QE3 much higher than the $85 Billion they started out with. Hence this is when the POG will litteraly sky rocket.
Now there is no question about it, when the POG moves up so will LSG. When the gold moves down so will LSG. Keep in mind that last Friday was an options expiring day along with being the last day of the trading week. A lot of people don`t like going into the weekend holding a position and especialy when it`s an option expiring day.
It`s so very funny how most people tend to blow their own trumphet when the POG and LSG goes up but when the opposite happens it seems as though its the end of the world.
I also believe that Tony and his team have done a fine job getting LSG to where it is today.
With that said LSG is trading just below its major support. I can`t stay below its major support for any more than 3 days. If it does stay below we could move back down to 0.30 cents. It all swings on the POG. Please check out the 2 charts below.
