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I still think gold will fall through $1000. Possibly in a paper rout a la 2008. That’ll be the low. This to me looks like a sucker’s rally.
i still think nobody knows..
Just curious what makes you think it is a sucker’s rally? I think stocks could continue down until well into the summer or even fall until the Fed raises rates. Gold may continue to climb after consolidating here. $1000/oz is a huge psychological barrier and if Gold breaks it it will be a huge drop from there.
No one knows for sure.
Gary, daily charts are useless. The weekly and monthly chart for gold are very positive and I wouldn’t be selling gold or it’s miners now. This is the time to buy and you are still dithering, looking for weakness.
Just waiting patiently for gold to make a higher intermediate high and confirm that the bear is over. This bull still has years to run. Missing a month or two is no big deal.
Was yesterdays break in the trend-line that you mentioned in your other post the other day big enough to move the Gold rally forward with strength?
http://blog.smartmoneytrackerpremium.com/wp-content/uploads/cotd56.png
It confirmed that a cycle low was in progress. I would need to see a break of the down trend line to before getting confirmation that the DCL is complete.
I’d just like to thank you for providing a good quality trading blog ….. in my opinion, you have the best free trading blog on the web …… with your skills; if you continue to treat people fairly and honestly over the long-run you will be rewarded with long-term success, imo.
Hear hear.
To me it looks like some of the hot air in the US Dollar is about to seep out;
http://stockcharts.com/h-sc/ui?s=%24USD
And the DOW Junk Industrials already looking like an Emperor with No Clothes;
http://stockcharts.com/h-sc/ui?s=$indu
Gary, Does the RSI 5 have to touch the 30 line to make a DCL, or is it just additional confirmation after a swing low within the timing band AND a trend line break? How important is the RSI 5 in signalling a DCL? TIA
The purpose of a DCL is to clear bullish sentiment. A DCL that fails to do that is likely to produce an unsustainable rally. It would be better for gold if it were to continue down this week and tag support at 1240 and get more oversold.