Sunday, October 31, 2010


Certain conditions were met on Friday that convinced me that gold is now entering the final leg up in this particular phase of the ongoing C-wave advance. The final spurt higher last year tacked on a very healthy 19% in a little over 1 month.

A similar performance this year would drive gold to $1578. Although this year we have the added benefit that the entire sector is trading at new all time highs. It is the only sector in the world that is in this position. This is an incredibly powerful combination that could drive the precious metal sector even further than it did last year.

At the moment there is a very low risk (-3%) entry for investors and traders to get on board this final run.

I explained the setup in depth in the weekend report.

For one day only I'm going to offer the 15 month yearly subscription rate again. That works out to a monthly price of $13.33.

15 months should be long enough to get investors not only through this final spurt higher but also back in for the final phase of the C-wave this spring. Get you out of the precious metals market in time to avoid the severe D-wave correction. And then back in to ride the next powerful A-wave advance.

We have an incredible opportunity ahead of us over the next several months and year.

If you want to take advantage of the discounted yearly subscription click here  and follow the Paypal link.


  1. Toby, how did you come up with that number of 3% of risk by entering gold stocks at this time?

  2. And how do you feel about investing in precious metal ETF's compared to individual companies?

  3. Gold is 3% away form it's stop loss level. I explain it in depth in the weekend report.

    I prefer ETF's so as to avoid company specific risk.

  4. do you show ABCD picture only to subscribers?
    Is 1578 anticipated level under your thinking end of current C wave?
    Asking because TSI trader blog also refers your blog but has extending C wave much higher in price and time.
    I assumed your C wave thinking ending after this final leg up sometime in December.

  5. It is going to be an interesting week....The dollar is still acting strange...(is this three higher lows?)....and the gold contracts are still down at these upper levels...slightly concerned...

  6. I think Gold in going UP. If we have a move down it will not be that slow like now. It will broke 20 MA and 50 MA at once. This one is just building another explosion to the UP side!

  7. Ivan, i dont understand your last post. You think Gold will go up and even so you expect it to broke MA20 an MA50 ? Can you explain better your opinion ?

  8. Bilhillify,you should make your password difficult not your user name,LOL. You are right, dollar is building ascending triangle formation with target of 80. I am not going out of dollar until it breaks to new lows.

  9. ERI,

    no offense but i thought that if you believe in chart patterns, tri angle patterns are supposed to be 'continuation' patterns...a pause in the current trend. If so-the dollar went from roughly 83 to 77 and the trend is down. I'd be Careful.

    The Elections and Fed can temporarily 'head fake' traders and the dollar can bounce, but from June to now it only bounced to the 50dma once.It BARELY gets to the 20dma (where it is now).

    just a thought :)

  10. Alex, no offense taken. Ascending triangles can also be reversal patterns. A long the price keeps making higher lows i stick to that.
    Here is example of asc.triangle as reversal.

  11. ERI

    ok thanks, I just wanted to give U a heads up. this mkt moves so fast these days, i take all the advice I can and adjust as necessary :)

  12. Alex, this market is so rigged and fake in every sense of the word that all the help in the world is not enough to survive.There is only computers and HFT who are frontrunning FED and have all the advantages in the world. Markets were never fair but this market is just plain laughable. And it shows in record outflows out of stock market for the last 40 weeks.Like you say take it one day at the time.To be honest its best to stay out of anything.As far as gold goes holding physical is the only way as far as i am concerned, gold stocks are just paper like anything else.It will flashcrash along with tech stocks, you can bet on that

  13. Gold stocks are hardly just paper. You are thinking about fiat currency.

    Gold stocks are ownership in real companies producing a real product.

    And other than the Fed stretching things because of massive liqudity inflows the markets aren't doing anything any different than they ever do. For the most part the cycles are coming right on time and when sentiment reaches extremes we get a trend reversal.

    Nothing different than any other time in the last 120 years.

  14. You must be joking, right? There is nobody trading the markets anymore but four big banks.This four get money for free from FED, then they use that money to buy stocks, than they report that out of 63 days in one quarter they had 63 winning days.
    Have you ever seen SPX chart on POMO days and SPX chart on non-POMO days.Well, difference is 15% overall, for Christ sake. They are able to crash the market in 15 minutes and then lift it back up in 10 while making money in the process. Market is unable to correct because its not allowed to and because there is nobody but big banks trading anymore, so there is nobody there to sell anymore. All brokerage firms houses are reporting 60% declines in revenues from trading, only big banks are reporting record earnings. Banks are falling apart from scandals that are swept under the rug,possible lawsuits worth billions are being considered against big banks yet FAZ is falling like a brick. Real estate in US is falling apart yet real estate index on NYSE can't fall. etc,etc. Market is not manipulated? C'mon

  15. Eri,
    Don't let yorself get dragged down into the whole conspiracy nonsense.

    The market is way too big for any one to manipulte for anything other than the very short term.

  16. yes , and besides....its NOT just the 4 big banks still trading...

    its the 4 banks, Toby , you and myself still moving this thing!! hAha j/K

  17. Carlos,
    Sorry for my english.
    Yes. I believe Gold will go up from here.It will not brake 50 MA at this time. Maybe not even 20 MA or very briefly. Where else to go,when Bernanke prints trilions of dolars.There is one direction to me-UP.

  18. Toby,

    I was just looking over the charts (again).

    This daily cycle in stocks just seems soooo long.

    I remember that at the time, it looked like we may have seen a top on the S&P and we had a swing high confirmed on 10/4. Then, it was on 10/05 that Japan intervened in the currency markets.

    What do you think the possibility that the S&P put in a daily cycle bottom on 10/04 and the new cycle started on 10/05? That would put the daily cycle at day 21.

  19. eri...everything just seems to get difficult...I think Toby is correct in that the market isn't manipulated as much as you think..though it is frustrating...I'm seeing a low for the dollar in 2008, a higher low last year and a higher low(so far) for this year. There is my right translated triangle...but as volatile as today was...who knows


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