I know the line for the office window jump is growing for gold and silver, but it's certainly not worth the wait. Today’s action reflects nothing the smell of burning electronics black box computers running algorithms unable to process selling strength and buying weakness. Breakout gaps, such as the ones formed on strong volume on 11/04 in gold and silver, are almost always filled shortly after their formation. The sell-off in stocks is little more than a retest of April gap resistance as support. See charts below.
Paper Gold:

Paper Silver:

S&P 500:

The hard sell-off, coordinated to redirect attention and instill fear, will be repaired. Investors with the discipline to avoid the jump line will come to see today’s action as just another daily hiccup within an increasingly volatile trend.
When enough “cause” is built, the run will resume. As I have said many times before, TIME is more important than price. The window of time does not become restrictive until 2011.
Gold Cycles:
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