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704 Or Bust

704 Or Bust

by The MoleMarch 2, 2009

UPDATE 10:16am EST: Wasn’t that a nice open? At this point it seems we are heading towards 704 to complete 3 of (5).

However, I decided to take profits at the open as I see 703 as a possibility but not necessity. The risk/benefit ratio favored taking profits now and waiting for new instructions. If this was the end of {v} of 3 then we might get a rally into 4, which might be violent and fast – best not to overstay our welcome down here.

UPDATE 10:34am EST: Here’s a pretty exciting chart:

Gold has been retesting its prior resistance line (now support) but as of this writing remains in the red for the day. Remember that GC – the big pit traded contract – closes at 1:30pm EST, so this is the middle of the day for our favorite precious metal. The fact that Gold appears to be unable to exploit a major drop in equities again confirms my position (mental and actual) that there is a good probability 1007.5 was the peak for this B wave.

Well, my SLV puts are loving it – hope you guys got a piece of that action. If you’re still out I suggest you use rips to start accumulating pertinent July put/short positions. I do see a short term bounce in the cards for both metals, so do use the rips and don’t chase.

About The Author
The Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at the usual social media waterholes.
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