I think only watching the gold price is a big smoke and mirror magician act and they are “Bluffing us”. What we are looking at, is a tringle inside a “B” wave zigzag. This always dictates that I “must” find one higher degree once these 5 diagonal 5 waves are completed. Silver and all gold stock ETFs do not confirm this gold bullish looking pattern. Silver only has to fall another $1.50 and it well be close to a new record bear market low. You can’t have gold in a bull market while silver breaks to new bear market lows. Even some of my gold stock related ETFs are also very close to breaking new record lows, so it’s not just one thing. We had so many bearish warnings that gold was going to implode, but thankfully gold investors ignore all these bearish signs. and technical indicators as well.
The Death Cross on this daily cash chart was at $1300 and the weekly Death Cross is still to come.
Even the gold hedge funds and the commercial traders have net short positions on gold. This is a bit rare but it has happened before. Eventually the hedge funds will get into a really big bear trap and that’s when this gold market will reverse and soar north again. Printing money has nothing to do with the price of gold but it’s the velocity of any money that does drive the price of gold.
Gold hit a 30 year record high in 2011, which was a “mania peak”, not some silly correction in an ongoing bull market. Commodity crashes don’t end with some flimsy bottom but they end in a far more violent nature. Bear market rallies “Always” retrace their entire bullish moves back down to and below the point of orgin. It seems the gold bullish wave analysts have turned a bear market rally into a bull market, as they are all confinced that gold will still break above $1400 this year! Good luck with that, as it seems that gold investors are following those wild bullish wave counts, which I always bet against. We can tell if we are on the wrong side as our bullish positions refuse to perform the way a bull market should.
Presently we are in a Minor degree “C” wave decline and is just about the smallest 5 wave sequence I will bet on, provided my account can handle it. There are about 3-4 ETF’s that track this gold futures cash chart very well. I’ts when they contain Options is when the patterns go insane. I’m starting to love options but will not know how much until the end of this year when all my PUTs must be closed off.
I have heard it many times how the majority of Options expire worthless, but this all depends in how we use options! If the majority of options expire worthless then it’s not a good idea to use options to chase a market in any direction. One wrong move against you and the options can go to zero and never recover before expiration date.
I will not give out details of my options trading until all PUTs are closed off, and I’m starting to build calls or take long positions in GDX or GDXJ. I have 2hr lunch meetings with my buddy and he has taken an options course, which he likes as well. He brought a huge stack of his books, so I told him that he was hired as my Options consultant! 🙄 The fact that we can talk the same options language and work together, is more important than his real world experiences. Everything I do can be cloned and scaled up with no real limits.
Traders don’t have to make millions as all it takes is a good healthy trading account where you can draw extra cash every year or month from. I would be happier than a littly piggy playing in a pig-pen if sometime by this year end, I cashed out with $89,000 or more!
I have a family wedding barbecue to go to this Sunday and if the weather holds, they can be a lot of fun.
Have a Great weekend!