See also The Gold Stock Correction is Maturing, posted on Thursday.
When I usually write the word “massacre” it is in reference to the Christmas Eve Massacre (in stocks) of 2018, and I write bullish about it. Here is a post from that very day with your letter writer/blogger expressing his opinion that it felt bullish (an impulse I acted upon by buying – not as aggressively as I’d have wished, in hindsight – what the machines were selling).
That was such real time stuff that I had not yet come up with the handy ‘Christmas Eve Massacre’ nickname for the event. I was too busy trying to figure my shit out.
And so here we are today, Black Friday, in my opinion the goofiest day of the year as consumers run each other down for a place in line to save a few bucks. Except that this year I would appreciate it if you do go out, try to patronize small businesses that really need a boost this year. Target will be fine without you.
Anyway, gold and silver are tanking in pre-market along with the weak US dollar. This is as it should be in order to confuse the max number of gold bugs following the anti-dollar gold promoters right off the cliff.
The gold price is hitting the 50% Fib retrace of the entire rally out of the March low. This is normal.
The silver price, which I am well short, has Fib’d 38% and appears headed for a 50% retrace of its own. The SMA 200 is rising to meet that level.
I have similar feelings on this holiday-informed event as I had during the Christmas Eve Massacre of 2018. But it’s not as intense because this appears to be the concluding move to a process that has been in play since August. It’s been a grind and final moves in the precious metals usually involve drama. But the entirety of the event has been a drag.
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