As expected from the November 1st, update, gold pre-market shows a gap-higher open. Trading is around 178.80 – 179.00 which is a little above the resistance area shown in the original chart.
After the first hour of trading, the plan is to provide an update to see if there’s still a possibility of a reversal at this juncture (not advice, not a recommendation).
Correspondingly, the mining sectors, GDX, GDXJ are up in pre-market with inverse DUST and JDST, down.
However, the big hitter, NEM is right at a 50% retrace off the lows of October 28th. This is a possible area to stall and potentially resume a downward (or sideways) trend.
Other market actions that may have significant impact on silver/gold, are the four-standard deviation in the bonds to the short side.
As Steven Van Metre indicates, none of us reading this (in our lifetimes) are likely to ever see a set-up like this again. It’s an historic extreme.
Bonds are down in pre-market along with the dollar … using UUP as the proxy.
The dollar has bottomed and is now in position to rally; completely opposite the established consensus.
At least twice now, Van Metre has mentioned Wyckoff in his updates. He appears to be well aware of the significance.
In other markets, a position was opened in nat-gas, UNG at the last session. That position was closed in the pre-market session with a slight ding of -1.2% to the managed account.
Even with record cold hitting large portions of the country, nat-gas can’t seem to get going to the upside. Now, with its current action there may be a probability of lower prices (or stagnant action) going into winter.
We are leaving nat-gas alone for now and focusing on the historic bond set up and the potential effects when it all unravels.