Stocks Rally and Metals Decline – But That Probably Wasn’t The Top

Posted: August 23rd, 2011 under Commodities, Predictions.
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Spiral Calendar Clusters For Gold (GLD)  August23rd, 2011

Spiral Calendar Clusters For Gold (GLD) August 23rd, 2011 – click to enlarge

Spiral Calendar Clusters For Silver(SLV)  August23rd, 2011

Spiral Calendar Clusters For Silver(SLV) August 23rd, 2011 – click to enlarge

Gold – GLD and Silver – SLV

Gold made a sharp decline from yesterday’s high but I’m not yet convinced that was the top.
When silver made its top in the spring, the first big down day on May 2nd, closed below support at the bottom of the low prior to the top. Gold didn’t do this yet but should almost immediately if sentiment has truly changed. Also there are no spiral clusters near yesterdays highs on either the silver or gold charts, but there are several over the next week or so. Gold and stocks have been moving in opposite directions, and I don’t think gold can top until stocks decline significantly and all appetite for risk evaporates. Given current volatility, this can happen at any time, although our favored spots are this Friday, August 26th and the same lunar phase next month, near Sept. 25th.

Silver – SLV

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4 Comments »

  1. Hi Dave,

    What’s your opinion? Is it buy or hold or sell for Gold and equities?

    Comment by Jacob — August 25, 2011 @ 6:32 pm

  2. Disclaimer: these are my opinions only – I am not advising any particular trades and your investment decisions should be taken entirely at your own risk.

    Gold traded below its most recent support so the evidence for a gold top is stronger than when I wrote this post. I don’t trade gold, but if I had to I would go for the short side with a stop above the high. Sooner or later that is going to be the trade of the week and maybe of the year.

    I have been 200% short stocks since May and that continues to be my medium/long term opinion. If we do get a big down day (more than 3%) tomorrow Friday August 26th, that counts like a complete 5 waves and making a new low, I will probably lighten up to just 100% short at the close, looking to reshort after a bounce. If there’s no big down day, I expect we are still in a 4th wave triangle of the decline from the early July top and I will hold 200% short in anticipation of a wave 5 decline.

    Dave

    Comment by Admin — August 25, 2011 @ 7:48 pm

  3. Thanks Dave. I do understand that these are opinions only.

    Comment by Jacob — August 26, 2011 @ 4:09 am

  4. This is why the new moon period is bullish.

    Comment by fred — August 26, 2011 @ 9:19 am

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