4 replies to this topic

[andiron]

we had massive margin liquidation for two days w/ Goldman's blessing...this is a discontinuum in the 10 yr bull market so expect downtrend to last for some time... Now my target is 1150 by June-July 2013... after a bottoming action for another 3 odd months thru Oct 2013 and then we shall see the last rise in gold from 1150 to 2000+... as a trader, gold should be volatile and nice to trade if you get the direction right .. i was a little hurt by the slide and did not see it coming...well that is Goldman for you....

[DrSP]

Thanks, andiron. Your perspective seems fair to me. I was going to ask you what your take on Gold now is, given that you were bullish at 1600 before the slide. I stopped short of asking you, because it would look like I am poking you. We should realize there is a cycle for everything. The actions will only last till the cycle start/ end. Gold's bullish cycle is over. Even if Gold rallies again towards 2000$, which I find very unlikely but not out of question, that would be a golden chance for people to get out or for short sellers to sell short. Nothing more or less. Coming to who caused the massive slide, I don't think it is Goldman who did it. I think it is some central banks liquidating. They may not announce with a presser. When they open positions, everybody announces so that the buyers will buy based on their action. When selling, they don't see the need to announce before or after it. India, China, Russia and many other countries bought massive amounts of Gold at 1000 - 1100$/ oz. They probably didn't sell at 1600$. But, when the slide started I am sure they will have a good sell stop at 1400 - 1500$, so that atleast they can cash their holdings for a profit. Who will want to hold the bag till the price reaches round circle to their buying price? It certainly would make sense to me if I read that some of those countries have liquidated their holdings.

[andiron]

we may be headed to GC1440 or there about in next few session... there it shall sell off again....

[diogenes227]

Five consecutive days down for GDX -- good for a long-side scalp 100 percent of the time in the past three years. Could be different this time. Good luck and good trading.

[DrSP]

You beauty, diogenes. Let us see what happens tomorrow.