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This is really looking a lot like the late May/early June correction. I have one more support trendline for gold at around 1298 right now. Coincidentally, there are a lot of sell stops at 1300 (according to kitco) and more at 1290. Best guess is that the institutional traders take us down even lower over the next day or two (leveraged longs getting margin calls soon). 1285.1 looks like the obvious place to buy, if we get there.
Rarely does a daily cycle low bottom before breaking the trend lines and taking at all the technical traders. Watch for a swing low later this week or maybe on Monday.
No doubt that counter trend rallies in the context of a bear market can be profitable, but like it or not the jury is still out on whether the gold bull market is back. I booked my gains last Friday and posted my thoughts on “where we’re at” so it’s no surprise that I didn’t get caught up in today’s milaze. THIS IS NO TIME TO BE A HERO (GARY)… THIS IS THE TIME FOR PROPER RISK MANAGEMENT. If the early May low in the USD holds and gold fails to make a higher high after we get a daily cycle low then it’s probable the DC (post swing low) AND the IC will form left translated dispite the fact that the first DC formed in a right translated manner. It’s time to get to the sidelines and wait and see, so turn off the computer go climbing, golfing or fishing and ONLY check the market’s on Fridays for a weekly swing low. The next weekly swing (not a daily swing) can be bought aggressively, but daily swings are WAY TOO RISKY to buy unless the USD’ s intermediate cycle fails beforehand. Like I said the other day… See you in October!
I’ve put out the “Gone Fishing” sign… See you when I get back and not before! 😉
We went to cash on Thursday.
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