Told ya so...

Gold did close even below 930, but as I explained to you the price of gold at 926, which was the low yesterday, would get rejected, and prices would move higher. Today that theory was correct. Why? Perfect 50% Fibonacci pullback? Immense support at the 930 level? Inflation/ Technical analysis on gold verses today's diluted dollar? People have many ways of figuring on what things will do and when. None of them work all the time. Fibonacci is a great method, but sometimes its 33% 50% or 62%. If you hold out for 50 and it turns out to be 33, you missed the boat. chart reading is great but you have to have some basis for why things will move higher. Chart patters fail all the time. Wait till everything technical and chart wise start to compliment each other when the pegs fit, you'll know. In the case of gold is a 33 50 or 62 % pullback likely? Yes. Is today's inflation and dollar strength (or lack there of) well enough to support gold below 930? No? Where's the support lines? Which line is strongest? What retracement level is that closest to? 930, dead on at 50%. You really want confirmation, where are the stocks at? At yesterdays close most of the major gold stocks where at the bottom of their trading bands, and closed way low and little volume. One last flush before people realize its not profitable to sell companies at these prices, their worth much more.

The dollar is desperately trying to hold the gap up it made yesterday to start the day at 80.40 for its close on the 12th at 80.20 area. Now, about gaps...their overrated, and at some point in time they will have to be filled. For the dollar its big "bullish" gap up will most likely be forfeited by the end of the day today or tomorrow. That fall might give gold enough juice to take on 940.

The gears have ground to a halt, and the transmission is thrown in reverse. Things are gradually going up again on light volume. I'd not be sure I'd by it either if I didn't know what I know. The volume will increase and things will start moving higher and faster. If you didn't believe me, here's your confirmation. We all need to eat, if you must trade don't leave your money out for long, or you stand to miss out. It's still not too late to buy in, things a relatively low.

And so it continues...
-J