The Great Gold Challenge

If the yellow metal can break above a key price barrier, it has the opportunity to regain some of its mojo lost in last year's horrific selloff... February 28, 2014     The Great Gold Challenge   Gold sneaks higher: the price you need to watch Bigger than a bear market rally? Plus: Shorties go all-in   Greg Guenthner coming to you from Baltimore, MD... Greg Guenthner Gold has a huge challenge ahead of it in the coming weeks. If the yellow metal can break above a key price barrier, it has the opportunity to regain some of its mojo lost in last year's horrific selloff... Here are the facts: Gold has greatly underperformed the broad market since late 2012. Yeah, I know that's old news. But so far, 2014 has been completely different. Commodities are streaking across the board. I told you recently that someone "flipped the switch" this year, triggering breakout after breakout. Coffee and natural gas are just two examples that zoomed right out of the gate this year. And taking a bigger picture look shows the S&P GSCI Commodity Index testing a major breakout zone after a huge 3-year coil. Meanwhile, gold is also sneaking higher. After taking its licks last year, it's quietly starting to outperform stocks... This little breakout could help gold tackle its next big challenge: resistance at $1,350. That's the price you should watch over the next several sessions. Gold was sneaking closer to this mark earlier this week. But after a four-day winning streak, gold took a tumble at $1,345--and it hasn't moved much since. Even with some constructive price action this year, you have to remember that gold is in a bear market right now. I'll continue to view the metal with a skeptical eye until it can prove that this recent move is more than just a bear market rally...         President Obama's Lucrative Investment And How You, Too, Could Profit The Pentagon is starting a $16.1 billion spending spree. Already, one small company we've been tracking jumped 163% when the Pentagon spent just a few million dollars on their technology. And that's just a start. Based on Congressional documents our research has uncovered, we believe the Pentagon's "fifth domain war" will soon really kick off. It could be as early as March 31, 2014. Click here to learn how you too could cash in on this windfall.           Rude Numbers Targets, Predictions and Wild Guesses   1995 was the last time that mortgage applications sat at the lows they're currently seeing in recent weeks. $1.6 billion in convertible senior notes will help Tesla fund its 3rd generation mass-market vehicle production, along with the Tesla Gigafactory - a battery manufacturing site. 30% has now dropped from the price of natural gas-- just days after 54% year-to-date gains for the commodity. $21.31 is where you'll find silver futures today. The poor man's precious metal continues to consolidate this month's gains after hitting resistance just above $22... 1,850 is where you'll find S&P futures this morning as indecisive investors continue to ponder another run at new highs...     Rude Trends When to Buy... When to Sell   Many traders are trying to short the stock market right now. In fact, short interest is soaring... "The S&P just nailed down its 47th record of the past year, and who in their right mind would bet against another new high at this point?" muses MarketWatch. "You might be surprised, though you shouldn't be. Short interest is surging at the prospects of a tired bull, even as the market seems fairly content to lay waste to new highs." Sure, there are some compelling reasons to distrust the market right now. There always are. MarketWatch points to the fact that only 6% of all S&P 500 stocks closed at or near their 52-week highs yesterday. That's despite the fact that the market notched another record. Still, this isn't enough evidence to lean too hard on the short side. This market has been tearing shorts apart for the past year. Short squeeze plays have dominated the biggest gainers category. The moves higher have been swift and brutal--and they've cost plenty of traders more than a few bucks... Today in the PRO, I talk short-selling strategies that could keep you from suffering a major trading setback. Check it out here... [Ed. Note: Send your feedback here: rude@agorafinancial.com - and follow me on Twitter: @GregGuenthner]     Ignore At Your Own Peril Today's Must Read Links   BOMBSHELL: Your Retirement Doomed by Obama Regime? Revealed: Bizarre Investment "Trick" To Avoid IRS Taxes Is this Science Fiction or Reality? You Decide...     BE SURE TO ADD dr@dailyreckoning.com to your address book.       Additional Articles & Commentary: Join the conversation! Follow us on social media:         The Rude Awakening is committed to protecting and respecting your privacy. 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