Bulls got sandbagged Friday when a promising rally in the early going turned suddenly into a $17 drop. However, the good news is that this occurred after the April contract had pushed above a key ‘external’ peak at 1361.00 labeled in the chart, generating a fresh, bullish impulse leg. Buyers failed to capitalize on this when they allowed the futures to dip beneath the 1350.80 low recorded a day earlier. It would have made an good launching pad if bulls had not been so exhausted. Look for more weakness in the days ahead, but please note that a rally of $6.25 or more would signal a possible bullish reversal. _______ UPDATE (Feb 20, 8:47 p.m.): How dreary! Gold will lose some of its luster — and my good will, technically speaking — if this correction exceeds the 1319.10 low recorded on Valentine’s Day. _______ UPDATE (Feb 21, 6:28 p.m.): Assuming it goes no lower than Wednesday’s 1324.40 low, April Gold would need to pop to 1335.70 today — and close above it — to register a pulse. _______UPDATE (Feb 22, 10:55 p.m.): The futures tripped a weak buy signal, but I’d suggest getting long only if you know how to ‘camo’ your way aboard on the five-minute chart. If you know why 1336.20 matters, you’re qualified to do the trade. Be a Pivoteer hero! Consider sharing the trade with the chat room if it triggers. _______ UPDATE (Feb 26, 5:38 p.m.): Buyers must push this cinder block above 1345.60 — and close it above that number for at least two consecutive days — to demonstrate that they are serious. Thereupon, a 1368.20 target would be in play.
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Three weeks ago I sold all my gold stocks. I’ve been a gold bull for the last 15 years. It’s very rare that I take the sidelines when it comes to gold but I feel like the final plunge down to sub $900 might be right around the corner. That would explain why the miners suck so bad right in the middle of a stock bull with $1325 gold price and everyone bullish. The companies that produce the gold tell a much different story.