Are We Now Witnessing Michael Oliver’s Major Tectonic Shift?


As you can see from the average monthly gold price chart above, the early days of 2016 have been for good for those of us who have a lot of gold exposure. The average price of gold so far for the month of February is $1,174.87, compared to an average price in January of $1,097.39 and $1,068.14 in December. That’s a $106-per-ounce improvement, and for mining companies, that’s a big deal.

But which way will things head for the rest of this year? Take a look at the chart on your left, which tracks the S&P/TSX Global Gold Shares. Notice that the move in the early part of 2015 was similar to the move we have enjoyed so far in 2016. What I mean to say is that it could come to an abrupt end once again if the landlords of this world have their way in trashing honest money in favor of counterfeit IOU money from the world’s central banks. I take it as a given if the ruling elite can trash the gold price and con people into accepting counterfeit they will do so. That said, I also believe just as firmly that the con game of the Keynesian central bankers and the Paul Krugman types of this world is nearing an end.

Chartist Dr. Richard Postma, who is on the KE report almost daily and whose commentary we pick up at JayTaylorMedia in cooperation with the KE report, suggests we may have a few more days of upside for gold, but he thinks we will then see more weakness. Doc is no longer of the opinion we will see $1,000. I believe he feels that is no longer a danger. From what I see, Doc provides excellent advice and I would encourage you to go to to listen to the frequent commentary from Dr. Richard Postma. On Friday Doc thought we would see gold remaining high and possibly taking out its recent highs, but he thinks it could be vulnerable in March. So he may want to take some short-term profits in his mining shares in a week or so.

While I value Doc for his short-term trading, I find Michael Oliver to be equally helpful in discerning major changes in markets. Along about the middle of 2015, Michael was talking about a major tectonic change in the markets. He was predicting vulnerability in stocks and debt markets and a bottoming out and strengthening first in precious metals then in commodities. Michael uses his proprietary momentum and structural analysis to predict major longer-term shifts. Now it definitely seems his predictions of tectonic shift are starting to appear.

momentumThis chart, which was published in The Wall Street Journal from Michael’s work, displays the kind of tectonic shift Michael has been predicting since the middle of 2015. And it is very much in compliance with what should be expected in accordance with John Exter’s inverse pyramid at a time when the monetary system is teetering on the edge. Initially, the senior currency gets stronger and so it is not surprising that with risk off, sovereign debt becomes stronger. Hence we are seeing U.S. Treasuries (TLT) still gain. The increase in the strength of gold may or may not represent a tipping point where a total loss of confidence in the Fed and other central banks is just starting to take place. But in any event, ask yourself why anyone would be gaining confidence in the system now after it is blatantly obvious that printing money and lowering interest rates are only causing the global economy to sink deeper and deeper into debt and depression. The more Janet Yellen talked about negative interest rates last week, the more the equity markets declined. More and more, even mainstream pundits are expressing a loss of confidence in the gods of money who destroy our nation and succeed as counterfeiters, the likes of which the most brazen mafia dons could ever dream of being. If this is indeed the kind of tectonic shift Michael has been predicting, then 2016 should be a very good year for our portfolio if not a good year for freedom, liberty, and prosperity and the overall values we Americans have unfortunately taken for granted or believed could be had through global military conquest.

On February 3, Michael Oliver sent out a missive titled, “Gold at the Gates,” in which he wrote the following: “Yes, I know, even gold bulls can’t get it out of their minds that for some reason the metal must drop to $1,000 or lower. MSA instead sees a massive momentum base on all of its long-term momentum charts, and now no matter which long-term indicator I reference, the numbers that signal breakout are tightening rapidly. 50-wk. momentum breaks out with a weekly close at $1,141.80 this week; quarterly momentum pops a top (a triple-top momentum breakout) on a trade to $1,159.20; the 36-mo. momentum chart renders a triple—to breakout on a trade to $1,156.40; and the 3-yr. momentum oscillator breaks out above all highs from 2013 to 2015 (they’re flat) if it trades to $1,169.45. A tight cluster of triggers.

“In gold’s case, except for the 50-wk. oscillator signal, it’s best not to wait for monthly closing proof. Instead, I would begin to ‘layer into’ gold as the above numbers get elected, like so many trip wires. You can wait for the highest one if you wish, but I suspect that a gold breakout through this zone could shock in its tone and speed—the sort of event where four market hours produce $50 or even $100 of upside. Not a must, but a structural possibility.”

Kudos to Michael. We did in fact get that $50 rise on Thursday and with it my portfolio has turned decidedly “green,” as you can see above. If this is indeed the start of a gold bull market, it will be a most exciting time for companies like Eastmain and Riverside. I interviewed the CEOs of both companies and below I am laying out the main points made by Dr. David Robinson of Eastmain and Dr. John-Mark Staude of Riverside. I have also provided links for you to use to listen to both interviews, which are located at

About Jay Taylor

Jay Taylor is editor of J Taylor's Gold, Energy & Tech Stocks newsletter. His interest in the role gold has played in U.S. monetary history led him to research gold and into analyzing and investing in junior gold shares. Currently he also hosts his own one-hour weekly radio show Turning Hard Times Into Good Times,” which features high profile guests who discuss leading economic issues of our day. The show also discusses investment opportunities primarily in the precious metals mining sector. He has been a guest on CNBC, Fox, Bloomberg and BNN and many mining conferences.