26 replies to this topic

[dharma]

Dougie, I will wait to see some kind of positive momentum divergence before going long again -- $800/$770 is a target.
Might be weeks...

i seriously doubt we get that low. if we break 900 it wont be by much! the june parabolic is still very much in tact, and todays move rekindles the august one also. i dont think this move up has legs, but we will see.
dharma

[dougie]

i read no one today who thinks this has legs wit h the exception of dcengr who says it may go to old highs teh ncollapse

[uncleharley]

The GLD chart indicates that another gap was filled today on increasing volume. There is no significant resistance up to 96 or so. If up volume continues to expand, I see no reason why recent highs should not be tested on this leg. uh

[dharma]

i check charts @night. i am not an expert on volume, but my understanding is high volume areas, such as the lows we just made will be tested and probably on lighter volume. most of the stocks put in capitulation high volume lows, so most probably that gets tested. we are in resistance(from gann angles coming off the highs) here and overbought on hourly charts. now lets see how the market responds. i am awaiting higher prices, i dont think the correction is over, however i will accept it if it is over. the problems in the banking sector are massive, the solution has not been made. some band aids have been administered. the system is still bleeding. the necessary recessionary forces of bankruptcy is being avoided. the problem will only get worse. gold has much higher #s in store. the dollar is toast. central banks will be building their gold hoards, watch what they do, ignore what they say. dharma

[Jnavin]

Yeah, the test of the near-term low has to be on less volume for the bullish case to kick in again. But, if it's on greater volume and takes out the low, bulls will have to sweat it out for many weeks.

[dharma]

thanks jnavin, my take as well. it appears to me that we are in B up of an abc down. i expect the B to end friday-tuesday. i expect the whole correction to be over by mid april. time is becoming compressed. the situation is unraveling very quickly. i expect the next assault or 2 to break above 1000 and for gold to march much higher. it is very disturbing, what i see happening in the economy. i await everyones arrival in the mining shares. mining will be seen as a good biz. the sector is small, prices of the shares will rise. dharma

[uncleharley]

Okay, I set a stop loss on my GLD position at 92.3. I still think there is strong support just above that level, but daily volume has dropped off making any move suspicious and I can turn a profit at 92.3. uh

[uncleharley]

Fwiw, I was stopped out at 91.89. It looks like the bottom is not in yet. LOL uh

[dharma]

while i am still of the mind that correction in gold is not finished yet. do not lose sight of the fact that the system is under duress. a result of which will see the dollar fall off a cliff. corrections in bull markets are pauses that refresh the trend. 1000 gold is a milestone on the way to hell! dips are buying opportunities. dharma

[dharma]

april 4th is the 3 year anniversary of the 05 lows. april 7th is the bradley, the speed @which the correction is occurring leads me to beleive that the correction may be over by weeks end, if not the whole correction then @least the A of an abc. @this point i am leaning towards the whole correction being over quickly, ie within the bradley date. i will let the market tell me. looking for rsi divergences. things are unraveling @ lightening speed. dharma