Gold -

I thought I would do a quick post on gold since the charts are screaming at me.

OK - first I ma a HUGE believer in gold and that gold will eventually cross the $5000 barrier and more. I am also a believer that when the big crash happens and true capitulation occurs all asset classes sell off in a hurry. There will be no place to hide. At some point all the money turns and flows into physical gold and silver as total panic ensues. Then the explosion up occurs. Till then goldbugs may face some tough times.

Let's start with this from Stockcharts chartshhool - The descending triangle is a bearish formation that usually forms during a downtrend as a continuation pattern. There are instances when descending triangles form as reversal patterns at the end of an uptrend, but they are typically continuation patterns. Regardless of where they form, descending triangles are bearish patterns that indicate distribution.

GLD And The H&S

Is the neckline finally broken? WEEKLY indicators look like the breakout is for real. RSI looks strong. Target for the triangle goes first at 105. Then the possible big move to the H&S target of 126.

What's bad? The rising wedge might be experiencing a throw over. Ouch to the bulls if it is.

Tough call. I will not be messing with it, and if I do I'll have some serious stops in place just in case.

(Chart may be better viewed HERE)

Is Thar Gold In Them Thar Hills?

Too early to tell. I do have a H&S labeled in this chart with a target of 126, but not counting on it or calling it (yet). The weekly vol is picking up which is good, but the indicators have not busted yet to my satisfaction. The triangle it is popping out of now is worth around 10pts to 1003 to 1005. The daily RSI is already at 70 and the S Sto is almost topped. It did gap perfectly thru the upper trendline and has set a series of higher highs and lower lows. I'm gonna wait and see what happens around 1003 and the neckline in black. Sho nuf looks good tho. Maybe a little too good if you know what I mean. It is set up to bust a nut, but proceed with caution.

From the FT - Gold edges nearer $1,000. "The dollar’s recent slide against other currencies has helped underpin gold. Nevertheless, traders and analysts were doutbtful about the prospects of a substantial rally in the gold price beyond $1,000."

Interesting article I found on Steve Quayle's site (yes, I look in strange places for stuff). The 1-3-6 Rule and Gold Begins to Move by John Galt at Shenandoah.

UNG getting bitch slapped this am. Ouch.

GL Trading

Chart better viewed HERE.

Someting I Saw In GLD - Don't Laugh

Not saying anything but other then the possibility of this playing out as if the market does turn south soon (like Monday - double tops are everywhere like at the end of last year) and a rush for safety (although this ETF is a bunch of shit and we all know an audit of the actual gold would prove massive fraud) by the stupid ass sheeple that have no clue what they are investing in could occur. The inverse head and shoulders is on a weekly chart which gives it some more weight in my book. I hate these formations, can't stand calling them either, but when they work they are a beautiful thing. Keep your eye on it just in case. Target is around 127. Just keep an eye on it. Just incase, OK? Just in case.

View the chart better here