The lower black line was lowered to include
the new low at 681, but the down flag still
resolves up. The wider the flag gets from
top to bottom, the higher it will resolve.
Friday, October 24, 2008
THE DOWNTREND HAS LASTED FOR TWO WEEKS AND DOWN $200
But it sure seems like longer to me having had
to watch every tick of it.
THE LARGER PICTURE OF GOLD THIS LAST WEEK
The RED intermediate downtrend channel lines
have been re-drawn to include the high point
of today's break out above it old configuration.
The next breakout above it will constitute a
new UPtrend channel, and I will eliminate the
RED down channel.
THE WAY IT CLOSED FOR THE WEEKEND
A good day for gold. The rally was long and
consistently up with no major pull backs and had
good volume to the top.
The pull back was slow and not at a steep angle
and unfolded slowly instead of a massive, all-at-once
profit taking bail out, which shows that buyers here
were holding on for the long term. Many may plan
on taking delivery, which could be a problem for the
Comex, which might have to settle some silver contracts in
paper money for lack of silver in their warehouse.
I think they have enough gold, but we could all be duped
on the gold holdings in Fort Knox and all the other places
we have been led to believe for decades that we have gold
stockpiles. Could be and empty room with moths flying
around a light bulb. Wouldn't surprise me any.
We will just have to wait and see what happens.
I think we have put in a bottom in gold and silver here
11:02AM PDST GOLD KEEPS TESTING THE TOP OF THE DOWN FLAG PUSHING THE FLAG UP
Dollar moves up to .8716 from its low today at
.8615.
Euro has taken back half its rally, currently at
1.2594
So gold is slipping lower.
Stocks have moved down most of the day, but
are rallying a bit right now.
Bonds have moved down from their rally high.
Oil has rounded over most of the day to a low
of 62, presently slipping from 64 into the 63s.
9:32AM PDST GOLD ZOOMS UP AS PEOPLE BEGIN TO FLEE TO THE ULTIMATE SAFE HAVEN
Expect a big pull back from this run up.
GOLD NEEDS TO MOVE ABOVE 730-35 TO REVERSE THIS DOWN TREND
Gold could be starting a sluggish stair step
pattern of successive down flags that keep
breaking out higher, but the volumes are so
erratic and short lived to the upside that
the market could fall dramatically at any moment
if the manipulators want to bomb it to keep
traders on their toes.
7:50AM PDST GOLD MOVING DOWN FOR LACK OF UP MOMENTUM
Dollar moving down off its high of .87585 to
.86485.
Euro generally rallying slowly with some pull backs.
Stocks fall 700 points on open but rally to only down 500
to 300 or so, now off 450.
Bonds zoom up to the 119s but have pulled back to the 117s
Oil sinks to 62 but is back up to 64, enjoy the fuel prices
while you can.
7:26AM PDST GOLD TESTING TOP LINE OF DOWN FLAG FOR SUPPORT
If gold can find support at the top side of the
down flag, it can move higher, but I expect it
will sell off as it has been doing and pull back
75% of this morning's big up move.
Sinclair is saying things are moving much faster
than he expected and once again is trumpeting
his very vague and safe prediction of $1650 gold
EVENTUALLY! This simply doesn't help us anymore
when our recent purchases are under water.
I am growning very preturbed with Sinclair's brief
comments and frustration with the anger of his followers
even though he will be proven correct in the long run.
This just doesn't help the "little guy" who is trying to
save his money by converting it to gold, and have some
to spend on living expenses at the same time.
7:09AM PDST GOLD MOVES UP A BIT
Gold makes another stab at the 75% point at
71750 on good volume but is immediately sold
back down, but not very far. It did break up
and out of the down flag, but that doesn't
excite me right now due to all the selling pressure
by the manipulators. It's good, though, because
it shows there are buyers who want to push the
price higher...just not enough of them to sustain
a good up move and defeat the shorts and cause
them to cover and add to the buying fever that
will happen eventually.
6:54AM PDST
Gold trading very cautiously to the upside.
Good volume on the pre-open rally that stopped
at the 75% point (see previous charts).
Now may be consolidating for further move up,
but after all the recent rallies and sell offs even
lower, I can't say that gold won't sell of more,
especially with all this stock selling going on.
People are running to Bonds first and buying
dollars to buy the Bonds, hence higher dollar
higher bonds.
All explained in detail by Bob Chapman and
Elaine Meinel Supkis, which you MUST READ
EVERYDAY!
6:01AM PDST STOCKS LIMIT DOWN BEFORE THE OPEN, BIG CRASH COMING
Should an exciting day in stocks. Will they all
sell their remaining gold to meet margin calls?
This day will be historical. Remember it.
Thursday, October 23, 2008
7:15PM PDST GOLD PULLING BACK, BUT HOW LOW?
The lack of follow thru strength in gold after
the early runup during the day session indicates
gold is still subject to being bashed lower by the
manipulators. The Bob Chapman article I posted
thoroughly explains why the dollar is up so high
and won't stay there for long. Further, Sinclair
is indicating that we could enter a Weimar type
hyper inflation within two weeks (coinciding with
the election) or as long as almost 3 months from
now. Either way, when the precipitating event
occurs, you won't want to be in front of the gold
rocket as it leaves the launch pad.
If you are going to get some gold, GET IT NOW
from MONEX where you can lock in some at 25%
of the ask price (about $2000 for 10 Maple Leafs)
Leafs and Philharmonics are the only coins you can
buy on margin. Call Kathy Lucatero at ext 2276 and tell
her GOLDTRADER referred you. I get nothing. I just
want Kathy to have the business because I trained her
in how to handle my referrals. I don't want her to give
advice to you, just take your orders. I will dispense the
advice. GET YOUR GOLD NOW, or forever wish you had.
9:36AM PDST MUCH MORE UP VOLUME ON THE RUN UP THAN DOWN ON THE RETRACEMENT
From 4am pdst to 8am pdst over 70,000 contracts UP
Since 8am pdst just over 15,000 contracts down and climbing
9:09AM PDST GOLD CONTINUES TO PULL BACK
Gold is steadily retracing and should drop rapidly
at some point soon, in fact it just dropped to the
61.8% point at 71660 while I typed this.
8:09AM PDST PULLBACK POSSIBILITIES
Given the down slope of the blue down flag,
it is entirely possible for gold to retrace down
to the first 75% fib (713) at least before rallying
to new highs.
7:50AM PDST THE PULL BACK SHOULD CONTINUE, THEN THE RALLY TO NEW HIGHS
There has been enough strong upside activity
and volume to make me believe this is the bottom.
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