As I have mentioned in prior posts there is a pretty strong inverse correlation with equities and Gold at the moment. Well you know my story on equities, and the ZH Most Shorted Stocks Covering article seems to support the notion that we will be getting back to the business of selling equities on Monday - which implies Gold is heading higher in the near term, and the close on Friday seems to support that as well IMO. Forget about the red candles in Gold of the last 2 days, both days the price has rotated around the $1,237 value point and down to its lows in the $1,232 area but importantly CLOSED above the $1,237 value level at $1,238. This says to me that the pressure is UP and the close at or over $1,243 is coming very soon as the equities rotate down to revisit their main value point at 1842 on the cash (S&P500). Forget about the apparent weakness of Silver, because as we have been waiting for it to gather some strength and close over $17.48, it has indeed been setting up $17.35 as the new POC. Now closing over the $17.20 area is going to see it drawn straight back up to $17.35+ again on Mon/Tues as Gold strides back up to $1,243. So on Mon/Tues, all we are needing now is a close over that $17.35 level and Id say that the Shorts in Silver are going to be sh*ting themselves. As I noted yesterday, there is way too much cyclic time in the coming weeks for these Gold shorts to avoid a trip up over $1,243 & $1,254, and this latter level will have silver up at $17.80 again at the daily downtrend. This downtrend will BUST in the weeks ahead without doubt, as we require a re-visitation and rotation around $18.23 minimum before we set a new vertical direction per Steidelmayer. My guess is that the breaking of that trend in Silver will be a big day and with sufficient time at hand afterwards, might even push Gold up as well (briefly) over the top of the trade range boundary at $1,268 towards $1,274. Its going to be a very interesting month coming friends, I hope you enjoy - its time to get out the popcorn once again and sit tight.
Posted on: Sat, 18 Oct 2014 02:34:51 +0000
Trending Topics
Recently Viewed Topics
© 2015