Wednesday, September 10, 2008

Gold Chart

nearly a month ago I posted a long-term chart of the December 2008 Comex Gold contract and pointed out possible support around 760. in the interim my eye for Gold has been fantastically out of focus. but with the new low today, another look at the big picture makes sense.

the low this evening was 766.8 and we're getting something of a bounce as I write. after this bounce stalls out (could be hours, could be days), one more decline would fit perfectly into my overall wave count of the correction that began this Spring.

sentiment seems to have been depressed adequately, the Commercial short position must be pretty near the low of last August by now, and financial system conditions are more fabulously fucked than even I could hope for. good circumstances for Wave Three of the Great Bull Market in Metals to begin in, if you ask me.

I've been trying to avoid this subject, but someone needs to point out that the recent nationalisations in the mortgage industry were, more than anything else, a bailout of the Company Store, which had taken on a huge load of 'collateral' in the form of MBSs this year.

corrected 8:39 AM 9/10: it's wave three, not wave two.