1. While I may have a few
minor concerns about the current emotional state of some gold market
investors, I have absolutely no concerns about what I see on the gold chart.
It’s a bullish work of art.
2. Still, if you want to
drive from Los Angeles to New York, I think we can all agree that you should
consider stopping for gas, correct?
3. Well, the gold price
needs to stop for financial gas on its trip across “dollar
country”, particularly when it has “driven” $240 uphill on
the dollar price grid, and is preparing to blast above significant
4. Click here
now to view the key daily gold chart. It’s a picture of bullish
beauty, and I have highlighted the enormous wedge formation with two black
5. It is normal, healthy,
and desirable for price to pull back to the supply line of a wedge
formation after the initial breakout to the upside, and that is happening
6. After rising about $240
an ounce without a fuel stop, your gold automobile has simply pulled into the
financial gas station. The attendant is filling your car with gas, checking
the oil, and even cleaning your golden windshield.
7. Sadly, many of you may
be cursing the attendant this week, as he does his job. In the gold world,
there are great gas stations. The service is impeccable, as shown by the gold
8. Screaming at the
attendant that you don’t need any gas to drive all the way across the
country is perhaps not the smartest move, but it’s your call.
9. You don’t need to
panic here at the gas station. Soon your gold car will be happily on its way
across dollar country once again.
10. Liquidating juniors
stocks at huge losses into $1525 and then rebuying them as gold soars into
$1700-$1750 is the best way to get a lifetime membership card in the price
chasing country club. It’s also an action that could impoverish you.
11. If the gold market is manipulated
then it is all the more important not to engage in the action of chasing
price. The banks likely are manipulating gold, and manipulating it higher,
with central bank buy programs.
12. The question of why some
gold investors have felt significant discomfort over the past few days is
perhaps one that is better answered in front of the mirror than by trying to
see who can reach the loudest decibel level while screaming that
Friday’s jobs report is a fake one.
13. Silver fans should click
here now. You can see that price has charged from about $26 to $34, and
has now pulled into the financial gas station for a rest and a fill-up,
alongside the lead gold car.
14. I’d like to make a
tiny suggestion at this point in time and price. Try stretching your legs and
grabbing a snack here at the gas station, rather than screaming that
you’re being manipulated to death.
15. For silver, HSR
(horizontal support and resistance) sits on the buy side at about $30, and it
would be very healthy for silver to “fuel up” at $30 or lower,
before launching a run at the downtrend line in the $36-$37 price area.
16. I would caution those
who take chart patterns too literally that this March silver contract has
what could be technically construed as a descending triangle formation, with
an ultimate and horrifying target of 3 dollars an ounce.
17. While a fall from $26 to
$3 seems totally impossible, you need to be mentally and emotionally prepared
to endure all price points on the grid, if rather than a silver bug, you want
to be known as Prince Silver.
18. This is an epic crisis,
and neither asset deflation nor asset inflation is the theme. The theme of
this crisis is surprise, and therefore mental and emotional strength
are your main tools for survival and prosperity. The good ship
“prediction” is a sinking one, and the only question is, are you still
19. The descending triangle
pattern on silver does not suggest that silver might fall down. It suggests
that silver might go on sale. I don’t think you will get the serious
price sale suggested by the triangle formation, even though gold and silver
are now entering what is seasonally the weakest time of the year.
20. Click here
now to view the scenario I think is more likely. The weekly chart for
silver doesn’t exhibit any kind of descending triangle action, but
instead shows a large drifting rectangle, with a breakout to the upside as
the likely outcome of the current $26-$50 range trade.
21. Click here
now for a shorter term view of the silver market, covering about a month
of trading. There have been four touchings of the
$33 HSR support on this chart, and a breach of that price point could see
silver go on sale at a price of about $30-31.
22. The bottom line is that
you need silver to move lower after an $8 move to the upside, so that it can
launch a serious assault on much higher prices.
23. Running your silver car
with limited fuel and maintenance is not going to see you arrive at your
targeted dollar destination. Hang out with your gold buddies at the fuel
station, but let the attendant do his job, or he might just call the men in
the white suits for you.
24. What is the scenario for
gold stocks? Click here
now to let the GDX fuel attendant do his job. There’s
a number of wedge formations apparent in the metals markets, including this
one for GDX. To blast over the downtrend line, price needs to “fuel
up” after the recent rally, and then rip upwards through the supply
line. All is fine. Grab a snack, then come back with
your seat belt fastened!
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