In response to Disputing the Alleged “Checkmark Recovery” reader Dave Bellamy informed me that I missed one.

Dave writes …

Dear Mish,

I read and heard you reports on the “checkmark recovery” – very good!

Anyway, I found a checkmark! The chart is below.

Keep up the great work. A dose of realism is so refreshing. It’s strange, but whenever I hear you talking about the union workers in the USA it reminds me so much of the 1970s in Britain, all the same stuff, the 1978-79 ‘Winter of Discontent’ culminating in the major election victory and reveral of policy in 1979 when Mrs. Thatcher came into power.

We got all the stories about British car workers in the nationalized car company talking their pillows to work so they could sleep on the nightshift and all that fun! The irony was also that, after these companies had been nationalized, their financial losses had ballooned. As you might expect with a blank cheque from the taxpayer via the Labour government. Now 30 years later, we are in similar position with rampant excess government again.


Gold Weekly

click on chart for sharper image

Thanks Dave!

There’s no doubt about it. That is what a genuine checkmark recovery looks like.

By the way, gold has had quite a runup. If the stock market collapses again (and I think that is likely), I do not know if gold follows this time or not. No one else does either, although many pretend to.

Should a pullback happen, I do think the $975-1000 area would hold this time, noting that the last correction was to the $680 level.

Gold can easily be at the start of a blowoff stage, but I am more inclined to think there will be another pullback first.

Mike “Mish” Shedlock
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