I'm just going to do a quick post today. The relevant factors are that gold appears to have put in an intermediate degree bottom last week. Miners are being dragged down at the moment as the stock market makes its final move into an intermediate bottom. This happens pretty much like clockwork every 20-25 weeks (currently on week 23).
Invariably when stocks move down into
one of these major cycle bottoms the selling pressure infects
everything. It finally grabbed the miners today even though gold has
barely budged. Not to worry though, we've seen this happen dozens of
times in the past, and the miners always snap back violently once the
selling pressure in the stock market exhausts.
More importantly than where things are
going tomorrow or the next day is where they are headed over the next
intermediate cycle. As I have diagrammed in the chart below the dollar
is due for a move down into a yearly cycle low around mid February or
early March. Roughly the same time as last year. This will drive the
next intermediate rally in gold (and stocks) for about the next 12-15
I'll say it again. Buying anywhere
around these levels will deliver big gains over the next 3-4 months.
Probably largest in the miners, but certainly significant in virtually
This is that period of time that comes
only once or twice a year when the chartists get fleeced (the charts
always say the market is going lower at intermediate bottoms. This is why chartists always miss these major bottoms. You need different tools to spot these kind of buying opportunities.) and the smart money positions for the next leg up.
The choice is yours. Do you want to
sell at the bottom again, or will you be a buyer this time and make some
money? (I think big money.)