We’ve learned over time that the nuttier gold’s rallies, the more assiduously we should avoid them. Yesterday’s presumably gratuitous, $18 blast pulled back the way we like, almost to the point ‘A’ low (see inset), then tripped a theoretical ‘buy’ signal with a nearly $5 rally to the green line (see inset). As of around 1:40 a.m., however, the rally was fading fast, threatening to breach the point ‘C’ low of the bullish pattern. If the selloff continues, keep in mind the 1128.30 downside target that I broached in recent ‘impromptu’ sessions (60-minute, A=1208.90 on 3/5; B=1162.90 on 3/6) . For a detailed analysis, check out the 5-minute video linked on the right-hand side of the home page. ______ UPDATE (2:42 p.m. EDT): After lurching sharply higher on the latest, moronic blather from the Fed, the short squeezed has detumesced almost as sharply. The daily chart is now bullishly impulsive — unusual for a vehicle that I judge to be going nowhere in a hurry.
