Gold … The ‘Bubble’ Wins

At Least, For Now

The rabid gold bulls … foiled again.

From the last update (emphasis added):

“Gold (GLD) either reverses from here or moves slightly higher to the 187.50-area before reversing.”

Immediate reversal is exactly what happened.

Actually, gold did go higher to the targeted (GLD 187.50) area in the overnight session; then reversed before the regular session open.

So, it did both of the forecasted moves. 🙂

The ‘Real’ Unemployment

By now, anyone with two pension-plans rubbing together, knows the numbers … that is, any ‘official’ numbers are complete propaganda (not advice, not a recommendation).

For example, the ‘real’ unemployment here, is likely closer to 25%, rather than the ‘official’ level below 4%.

Keep that in mind, as we continue on.

Gold GLD, Weekly

The GLD, weekly has the three major tops with the current (potential) one included.

The second chart (the daily) focuses on the reversal; in technical terms a ‘Wyckoff Up-Thrust‘.

Gold GLD, Daily

Right now, we’re at the test or The Danger Point®; it won’t take much force to move price action either way.

Pointing probabilities to the downside, we have a repeating pattern of ‘Spring to Up-Thrust’.

It’s an observed empirical phenomenon, markets tend to go from a Wyckoff ‘spring’, straight into an ‘up-thrust’.

The New ‘Paradigm’

Well, we probably to have a new paradigm but it’s not in gold (not advice, not a recommendation).

That new paradigm is what no one will discuss.

In the opinion of this author and contrary to what is presented here and here (remember our ‘unemployment’ numbers) we’re in a full-scale demand and population collapse.

The ‘inflation’ for possibly a large part, has been manufactured.

You can’t have over one-hundred food processing plants mysteriously burn down (bug, insect factories not affected) with millions upon millions of egg laying hens destroyed, cattle herd at 1962, lows and not affect the price.

For whatever reason, the mainstream has decided to reveal to the masses what’s been known for years to those who are awake.

Of special interest, Tucker Carlson interview, linked here.

Going Forward

Gold’s at The Danger Point®.

If it can’t make it higher from here on so much apparent and ‘rampant’ inflation, there’s a real risk of it being affected by some kind of Sovereign default … somewhere.

A default would potentially lead to a massive asset sell-off; including everything that’s not nailed down … i.e., gold.

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279

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