Gold investors sure have the nerves of steel when they can see thier investments slide like this. Sooner or later they will throw in the white towel and then capitulate. On the daily charts there is a void below which is all peppered with stop-loss sell orders. The pros know how to trigger these stops, so they can fall in a domino fashion. Gold could stay well inside these channel lines and just keep heading south for the rest of the summer. I know one thing and that is, that this angle of trend line will not remain as usally they drop in a vertical fashion before they finish. These types of waves can also produce gaps so if one happens, it will not surprise me. At the same time any gap does open up, then the odds increase dramatically by 90%, that this gap will get filled on the way back up. Once $1120 support gets taken out then there is only one support leg left before gold crashes below $1047. You’ve seen the westerns where they lynch people and just kick out the entire stool.
Gold/Silver has finished a 30 year mania peak in 2011, and its correction is far from over. I think we are fooling ourselves if we believe that gold can only have a soft landing and then soar again. The soaring will come, but not until late fall or early 2019 as at that time gold could soar a $1000 dollars, back to $1700-$1900.
I do not need to fill in any Minute degree waves as I only need Minor, Intermediate, Primary and Cycle degree peaks to trade my entire Cycle degree crash in gold.
We are coming of one the most inflated periods of our times and this will not end well, for those that are holding assets for investments like real estate. I trippled my custom bars to 1500, and what you see above is the 50-200-day MA, which crosses more frequently. I will try and track it like this for a little while, but usally 500 custom bars is my normal setting.
We had a quick Golden Cross and then right back into a Death Cross. The next sequence would be a Golden Cross, which could also be over and done with in a short period of time.
Once a trend is set, nothing will stop it until it’s final conclusion, which could be gold $700-$800 by the end of the year. My buddy and I are in full planning mode for the bottom as the trip down is already in action and I don’t intend on changing it. I’m working on how options can work in the mix, but I’m a bit rusty and can easily goof up.
Remember one important thing about options, and that is never ignore an option that has gone to zero, as that option could spring to life on the very last day of expiration, and you better have your finger on the trigger during that day. I have a trader that had puts out on cattle, and it went to zero alright, but on the very last day it burst to $3000 USD and he manged to cash it in right at the last day, after his broker called him.