Thursday, April 24, 2014

Morning Charts 04/24/14 SPX /es #GOLD #Chart

OK, lets start this morning with Gold Slammed To Fresh 10-Week Lows Below Key Technical Level, and stop and think about a few things rationally. Let's make this real simple -

1) As I've always written and conspiracy fact has proven, gold is the most manipulated commodity on the planet.

2) Use any weakness to buy physical and get out of the dollar (their system).

3) Always trade dollars (not credit) for gold. This is the best investment on the planet. First, you are trading a worthless piece of paper for real gold. Second, they can not track your purchases.

4) When and at what price did China and the world start going ape shit over gold? 2009 and in a range from $950 to $1,050 - so there is your floor.

There is really no point in going beyond either statement above in any argument. If you are trading completely worthless digital or paper gold, then this is another story. Here you are at the complete mercy of JPM and the gang of five that set the price. I'm not gonna talk about near term trades in gold. Bottom line is long term both paper and real gold will eventually explode to the upside. So just be patient and let nature take its course. After the eventual ramp of course the paper will be proven worthless and well, you know the rest of the story.

With global turmoil, Russia and China starting to aggressively move away from the dollar, our slight debt situation and a gazilllion other factors how could you not be in love with owning gold here? Well, aside from the complete manipulation issue that is. They will lose control of this one day and the house will lose its bet and have to cover. Then in instead of a flash crash there will be a flash ramp.

Let's look at some charts so technically you will understand where things are.

/YG Monthly - From the $270 low to the $1927 top price has fallen or made a normal retracement to the 38% level near $1295 and has traded there for the past year. Looking at the run up, a base red diagonal support was created. Then there is the green megaphone. Inside that there was the yellow rising channel that spectacularly overthrew green resistance. When the yellow rising channel support failed and price came back under green resistance - at the backtest of both of those it was all over. (Note to STB readers - it is this exact sort of point I'm searching for in equities to finally throw in the towel.)

/YG Weekly - A closer look at the breakdown to 38% retracement. The development of the possible pink falling wedge (not so sure I like where support is drawn and that can change). You can see green long term support below. I've been talking a lot about the potential double bottom dead cat bounce at $1181, and its possible correlation to a potential top in the equity market.

/YG Daily - Gold has traded in a $1400 to $1180 range for the past year while consolidating and creeping over to take out white resistance. So, after the double bottom price consolidated till it took out resistance and is now in a nice long backtest of this resistance at the 38% retracement. Sounds like the perfect spot for a technical breakout.

/YG 60m - The Rebel Alliance can not be allowed to succeed. The rebellion must be crushed, so the Empire creates moments of fear and doubt in your minds and gets you to freak out. The sky is not falling although it may seem that way. So lets look at this "slammed" situation in gold this morning. It was pushed to a lower low. This needs to be noted, but white near term support is still intact so don't freak out quite yet. Now look back up at the last chart. OK, if you own this then you hope white backtest holds, and if not you have to expect they could really slam price to an $1181 triple bottom or all the way to the potential STB point where pink and green support intersect below on 05/20 at $1133. $1133 should be the ultimate floor.

On to the lie -

How bout that ramp AH yesterday. That was special wasn't it. If volume is not light enough to ramp it while open, then wait till its closed where you can really do some dirty work.

Minis 60m - Yesterday I mentioned the backtest of 1866 twice. All it took for Team Manipulation to freak out was to come near green rising channel support and the 1866 area for them to react. Now price is back to its third test of upper falling blue channel resistance. Could the bears still have the ball? This 1880 area has to hold if so. It's their last hope.

or the STB point at 1900 where yellow, red, pink and green converge at the end of the month is clearly in play.

More to come below.

Have a good day.

GL and GB!

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