What to watch for with respect to a precious metals drop that could be the beginning of a climactic decline:
- Gold Target: The daily pattern targets the low 1100’s if the June low of 1179 is lost.
- Silver Target: Silver does not have a measurable pattern, but its long term support shelf is in the 15-19 area, a wide range. If silver breaks the June lows, be mentally prepared for the mid-teens.
- Both metals are above their June lows, even with this morning’s downside, so a ‘retest’ scenario is open as well. But again, at least be prepared for these lows to be taken out in a climactic event. Gold’s pattern measures to low 1100’s after all.
- HUI targets have been discussed repeatedly. Be prepared for 130. This does not mean it is going there, but in the context of climactic events if indeed that is what is happening, the troops are capable of anything now as the year of ignominy ends with stocks celebrating Santa and gold bugs finding lumps of coal in their gold trimmed stockings.
- In other words, I cannot tell you what depths human emotions can come to but with any luck (in making a bottom) we are about to find out.
I traded out a couple items earlier in the week (RGLD and the spec. GSV) and also added BTG yesterday. My personal situation prefers downside. I hold my preferred positions because I do not have a crystal ball about the desired outcome. But more and more it looks like a climax is going to come sooner rather than later and I am hopeful that the GDX crash puts will do their job.
Gold ‘community’ members tend to be solely focused on their shiny idol. But there was a big stock market reaction yesterday in the face of what the majority was being told would be bad news. It was simply logical news. Anyway, it looks like Santa got here yesterday as the sled came crashing right through the wall of the house and a rum soaked Santa bellowed a merry Ho Ho Ho!
He also may have started the clock ticking on coming changes in the market for early 2014. I plan to nimbly trade the market (I ended up biting on Apple yesterday) and have a list of other things that I am looking at for the very short term. Speaking of emotions, this could be a final surge that gets the dumb money all in on stocks. Let’s stay balanced.
I will be out for much of today. In the event something notable happens and there are no updates, that would be why.
Much more to come in NFTRH 270. Keep your chin straps buckled.