If you’re having trouble believing that yesterday’s panic out of bullion was no more than a garden-variety shakedown, then try to imagine that stocks, which also fell yesterday and which have been moving in tandem with precious metals, are doomed as well because of whatever it was Bernanke was blathering/lying about in his testimony before Congress. Does anyone actually believe that the Mother of All Bear Rallies is over simply because officialdom has chosen not to acknowledge that the money faucet is wide open despite their being no official declaration of QE3?  That’s what I thought.

From a technical standpoint, yesterday’s selloff was  only weakly impulsive on the hourly chart.  And now there’s a bounce, that  is continuing at press time. Because it comes from a 1356.75 low that fully 1.00 point beneath a Hidden Pivot ‘D’ support (A=1377.25), we shouldn’t expect the rally to rocket to new recovery highs straightaway.  Camouflageurs can nonetheless look for a handhold on the lesser charts if and when the futures appear to consolidate above the 1362.25 midpoint pivot shown.  There’ll be plenty of upside left, since the 1390.00 rally target broached here earlier remains valid. Would you like to learn how we use the ‘camouflage’ trading technique to significantly reduce entry risk? Click here for details