Quote from: miscreanity on September 24, 2011, 09:35:17 PM

Quote from: cypherdoc on September 24, 2011, 07:23:31 PM

Quote from: netrin on September 24, 2011, 05:28:59 PM

Quote from: cypherdoc on September 24, 2011, 02:38:43 PM

truly, the PM's call was an easy one. my focus right now is on the stock mkt and what happens there.

Have you closed your shorts? You don't see gold dropping below $1600 in the short term?

no and yes.

The individuals presenting their viewpoints are obviously very proficient with charting and savvy at financial analysis, but I haven't seen any ideas other than technical methods based on assumptions that work in a situation with stable, well-defined rules and generic explanations based on traditionally-accepted investing knowledge. There is little in the way of stability now and the rules are being changed rapidly. Wave analysis has limited function under such circumstances. Remaining unaware of factors that change the rules will make the short-term gains seem paltry and fleeting compared to buying the dips in gold.

It would be prudent to close half your shorts; at least set stops at a little above break-even. No sense in watching such a nice profit evaporate.

Hold all physical metal. I'm buying real metal hand-over-fist. My usual dealer is sold out until next week. Price can't decline with no supply and high demand. Waves can't change the fundamentals of reality.

The gap being backed and filled so forcefully introduces a larger wave of demand than would've been expected without that having been achieved - it's now a launching platform. More long call options to be opened throughout next week. Some were closed at a small profit; the rest are good until early 2012. Upper price targets still in play, although with this push down they may actually underestimate the resulting rebound. If you're worried about the downside (because of fear or margin trading), you shouldn't be in this market.

Predictable that the paper price of the metals was severely hammered after they were stabilizing; a blatant assault designed to force a margin squeeze prior to futures options expiration on the 27th. Odd that it was such a quiet final day of the week for all other markets. Not to mention margin hikes, bringing the exchanges ever closer to a full cash basis. Who do you think will be buying on the way up? I guarantee the banks that have massive outstanding delivery obligations on the horizon will be among the biggest buyers, closing out their own untenable short positions.

Japan is finally making noise about the Yen's "fair value" being between 80-90 per USD. The final week of the month will be a vicious bout of deflationary excess, creating even more pressure and delaying the inevitable. Shorts have over-extended themselves against a tidal wave of buying.

Support broke in July and is now being retested as resistance. Just as the gap in gold below $1,680 was filled, the gaps between 0.043-0.047 will be filled. That is also a rally based on "least worst" and not any form of value.

My advice: take some of your short profits now and sew your mouth shut so you won't have to pick your jaw up off the floor in a month.

you can't use gap analysis on ratio charts. gaps are EVERYWHERE. if i use the $USD/$SILVER chart, there is a gap way up there at 5.00 from June 2010. are you saying the ratio is going to go there too?

oh btw, that same ratio chart is up 44% since the bottom. quite the trade, long USD short silver, huh?
the $USD/$GOLD is up 27% from the bottom too.

GLD has a small gap down at 132. are we going there too?