Friday, June 19, 2009
Filed under: General Editorial
There is no better proof that we are getting extremely close to the Armstrong/Alf point of lift off than the violence of the shorts in their desire to cover both in paper gold and the long suffering junior gold shares.
The method used is to increase the short position now while we are waiting for the uptick rule to be reinstated all while driving a bulldozer of selling into markets. This selling is not to sell shares as much as it is to make a grandstand play to shake the confidence out of the bulls.
This type of strategy in paper gold today and many of the highly shorted junior gold shares is to ignite the passion of fear in holder’s hands, therein allowing the shorts to make cover.
Call or email your company and inquire about their fundamental position. If it is good, then be sure you are witness to a strategy that is as old as markets themselves. This strategy is used by bulls to run shorts, and shorts to make cover depending on the circumstances.
In my opinion we are very close now to the best and longest move upwards in the gold market.
Gold is going to $1650 and then on to Alf’s numbers.
The US dollar has nowhere to go as its support here has been only algorithms and coordinated statements of support, but actions to the contrary by the BRICs.
Stay the course.
Thursday, June 18, 2009
THE BLUE UPTREND LINE EXTENDS UP FROM THE MAJOR LOW AT 86750 AND SHOULD HOLD GOLD ALONG WITH THE YELLOW UPTREND LINE
now support higher gold price even more so than
they had earlier in the day