While most 4th
rate analysts unwittingly misdirect you into watching for a big dollar collapse
and cling on to its alleged correlation to gold, all you have to do is look
back a year and see their relationship is worthless. The gold trade has been an
obvious disappointment and its most recent breakdown through 1320 has brought about
a ‘think tank’ infested with analysts fetching for all sorts of reasons that
seem rational for calling a bottom. None of which are true--and of course these
same analysts that tell you to keep an ‘open mind’ are the ones mentally
blocked from knowing the characteristics of a downtrend. And they’ve been
sending you emails and newsletters for months saying this “JUST MAY BE the TIME”
we have reached the final low!
As you all know
the reality has been much different, with every rally being met with tremendous
selling pressure, giving you no indication of a possible bull market. Did you ever
think that once the bull gets underway and reaches 3200, they will all tell you
it’s time to get out?? The same crowd of forecasters that were keeping you in
at $2000 have ridden the bear “A L L- T H E W A Y- D O W N” to these current
levels, still claiming every oversold condition is just a pullback to a much
bigger uptrend! I’m sure after 22 months it will be that ‘conspiracy theories
of manipulation’ or some ‘finishing wave count’ are the reasons.
Truth is,
once you break the apex and have a lower low you add the width of the triangle
from the breakdown point to get the measured move. This shoots for a price target
of 1200, which is a minimum expectation, but perhaps on the next failing rally
we will see a climax low to 1140.
CHART OF GOLD (1)
That also would
have price return to the 61.8% area from the lows of 2008 to the highs of
September 2011 and a good place for an extreme reversal bar to appear.
Chart of Gold (2)
Here
too is a potential fold back measured move from the point the trend went parabolic
in 2011, to where we are now in the current downtrend. Notice that the parabolic
uptrend of 2011 equals the parabolic downtrend of 2013 in size and that it happens
to fall in the vicinity of these same target lows. Not to mention, the downside
volume is now much lighter which is a sign that most of the selling pressure is
being absorbed by central bankers and giant institutions controlling the demand.
Most people
lose money in downtrends because they have no strategy, they become instant
long term buyers, and, they must ‘wait it out’ only to recover 70% of their
losses, if they’re lucky. Timing the market is not the same as ‘time in’ the market
and you should know that after a price base of 4 to 5 weeks your odds of ‘a
bottom’ is more likely. Or basically draw a horizontal line from 1200 out, and even
with giving five or so percentage points to account for volatility it won’t be
a surprise to see in a couple of weeks that price will be trading flat. We are
hovering above extremely tough support on all time frames, and once 1350 is regained,
the bull market will launch!
The Complete Coverage Report offers two subscriptions—$9.95/month or $100/year. It is well worth the information received.
www.thecompletecoveragereport.blogspot.com
Darah
www.thecompletecoveragereport.blogspot.com
Darah
