just going to do a quick post today. The relevant factors are that gold
appears to have put in an intermediate degree bottom last week. Miners are
being dragged down at the moment as the stock market makes its final move
into an intermediate bottom. This happens pretty much like clockwork every
20-25 weeks (currently on week 23).
when stocks move down into one of these major cycle bottoms the selling
pressure infects everything. It finally grabbed the miners today even though
gold has barely budged. Not to worry though, as we've seen this happen dozens
of times in the past and the miners always snap back violently once the
selling pressure in the stock market exhausts.
More importantly than where things are going tomorrow or the next day is
where they are headed over the next intermediate cycle. As I have diagrammed
in the chart below the dollar is due for a move down into a yearly cycle low
around mid-February or early March - roughly the same time as last year. This
will drive the next intermediate rally in gold (and stocks) for about the
next 12-15 weeks.
say it again. Buying anywhere around these levels will deliver big gains over
the next 3-4 months. More likely than not the largest gains will come from
the mining sector, but certainly significant gains will occur in virtually
all stock market sectors.
This is that period of time that comes only once or twice a year when the
chartists get fleeced (the charts always say the market is going lower at
intermediate bottoms. This is why chartists always miss these major bottoms.
You need different tools to spot these kind of buying opportunities) as the
smart money positions for the next leg up.
The choice is yours. Do you want to sell at the bottom again, or will you be
a buyer this time and make some money? (I think