Apologies for posting a bit later than original... SA was down for a bit when I attempted to reproduce the post here. For up to the minute content, go to http://www.biiwii.blogspot.com --Gary
I would love to see a full retrace down to the SMA 50. There is still time for a nervous world to express its skittishness into the Fed's QE decision, although time is running down. Come on little sheep, do what you do!
How pathetic it is that millions upon millions worry about the amount of incestuous stimulus that FrankenConomy is going to get as the institution that manages the proceedings gets ready to buy the nation's own legacy debt that cannot be repaid. And still so many people fret over the 'price' of gold. There is no 'real' US economy and so by extension there is no USA. The real USA can only take shape after we have dropped the denial schtick and gotten about the process of rejecting the blood suckers (you know who they are) and our own lifestyle expectations of the last century (go forth and consume, it is your birthright).
But oh yes, this is a TA post. I never fret the price of a real value instrument, but for anyone interested in micro managing, the 38% Fib and SMA 50 represent a really good pullback and a point from which the next launch would become a high probability. However, RSI is at support now, MACD has done some good downside work and ya just never know. Will the lower gap be all we get?
Make preparations to be on the right side.
And, as if his ears were burning, here comes Jon with this morning's gold view (and it is a front row seat):
Gold This Morning: Hit Me With Your Best Shot
Modest overnight turnover by recent standards has prices discreetly better as gritty buyers continue to challenge waves of witless and preposterous pundits providing primacy to the countdown for the dawn of QE2 next week as a measure by which our discredited financial leadership can again provide handouts to make America great...again. If it's come to this than we are clearly out of Red Pills and there's a reason why Aces over Eights is the Dead Man's Hand. The facts: GSR, our measure of liquidity sloshing around the engine room, has eased to ~56; open interest for gold futures on Tuesday eased again, by 4,000 contracts, confirming the distribution profile we raised yesterday; relative strength continues to flirt ~50. No, not quite a launch pad yet but substantively corrected from the overbought atmosphere earlier in October. Today: Do not succumb to the prospects of hopeful prognosis; gold's recent trading range between $1320-50 is still applicable but the facts are compelling and the obsessive media analysis on QE2 has mitigated the mystery...this time we buy the event.
Disclosure: No position in GLD