Unfortunately I must be brief today. Jim Sinclair made an excellent observation today, and I would like to pass it along to you and add a picture to it so that you may visualize the potential standing befor us. It helps to know that it is commonly believed that Gold Stocks often lead the metal higher and lower. That being the case, Jim's observation may be quite poignant at this time.
As the price of Honest Money, also known as Gold, approached $647 it was moving towards what has a very high probability of being the bottom of this black box retreat. What would seal a bottom would be a firming in the blown out gold share sector. You can be assured that firming in gold and related shares would not be a product of the gold community already in position, but a combination of short covering and long taking by our dear friends at Black Box City. There was some indication of this today. The barrel may well be rolling in our favor. I believe the gold shares now to be more of a forward looking indicator than the technical position of gold itself.
I feel the pain is nearly over.
As distasteful as the past few weeks have been it is only noise as the major trend is up with $761, $887.50 and $1000 coming.
Silver Support: rising 50 WEEK moving average at 12.74
Gold Support: rising 50 WEEK moving average at 640
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