Yesterday we saw a big move in gold and gold stocks as the metal rallied over 25 points despite all of the talk and predictions for a huge dollar rally that is supposed to cause a stock market crash. I told you last week that now is the time to buy stocks and not sell them and I believe that even more now.

Look, gold's move yesterday should allow you to put aside all of these wild predictions certain people are making right now for a stock market crash. Their whole argument is that the dollar is going to rally and that is supposed to cause people to sell stocks, because they supposedly have borrowed dollars to buy stocks.

If this was going to happen gold wouldn't be breaking out now to new highs but crashing.

Stop worrying about what people are saying and pay attention to what the global markets are telling you!

Last year gold peaked and crashed ahead of the November stock market crash. Now its going up ahead of the market.

Now why did gold go up so much?

First of all you have a Fed meeting today in which the Fed is expected to keep interest rates low. At one point traders were thinking that the Fed might raise rates by the end of this year or in the beginning of next year, but now the Fed funds future market does not see any Fed rate hikes until the second half of next. The FOMC meeting is bullish for gold and traders tend to bid things up into bullish events.

And then of course you have deficit spending over one trillion dollars that is putting pressure on the dollar thanks to the man in the White House and the crazy economic plans put into action at the US Treasury.

Yesterday The Indian Central bank bought almost $8 billion dollars worth of gold from the International Monetary Fund. People had been worried that the IMF would dump this gold on the market so when these banks bought this gold it took these potential sells away.

The buy is bullish, because it shows that central banks are looking to diversify their holdings and are willing to do so by buying gold over $1,000 an ounce. Unlike the Elliot Wave theorists they believe that gold over $1,000 is for real.

The China Central bank has been buying gold too so India doing buying simply ads another big player into the market.

Dave Skarica and I talked about gold and the correction in the stock market yesterday and recorded the conversation for you. To listen click here or download the mp3 file:

You Can Download the File To Your Computer By Right Clicking This Link [1]

This article continues in the WSW Power Investor section with a discussion of individual stocks and plans to profit from the market moves.