Our proprietary cycle indicator is down.
We are short GLD with a tight stop.
As long as the dollar continues to consolidate, the
expectation is a bullish breakout.
The euro is inverse to the dollar, and the current
consolidation may seem like eternity to short-term traders, but the previous
consolidation lasted much longer before breaking down.
Summary
A bull market in gold and silver has been confirmed, but no bull market is
sustainable on a nonstop price spike. Therefore, it is not if, but when, a
correction will begin. Bull market corrections can be very sharp but
short-lived; therefore, the next cycle bottom could be an excellent entry
point.
Meanwhile we are short GLD with tight stops.
Jack Chan is the editor of simply profits at www.simplyprofits.org, established in 2006. Chan bought his first mining stock, Hoko
Exploration, in 1979, and has been active in the markets for the past 37
years. Technical analysis has helped him filter out the noise and focus on
the when, and leave the why to the fundamental analysts. His proprietary trading
models have enabled him to identify the NASDAQ top in 2000, the new gold bull
market in 2001, the stock market top in 2007, and the U.S. dollar bottom in
2011.
Disclosure:1) Statements and opinions expressed are
the opinions of Jack Chan and not of Streetwise Reports or its officers. Jack
Chan is wholly responsible for the validity of the statements. Streetwise
Reports was not involved in any aspect of the article preparation or editing
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paid by Streetwise Reports LLC for this article. Streetwise Reports was not
paid by the author to publish or syndicate this article.
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Charts courtesy of Jack Chan
