Gold Fever!

UPDATE 9:38am EST: Good morning, ladies and leeches! We got ourselves a mild drop in equities this morning, just as I expected. Question now is – will it continue and develop into a full scale slide (meaning Minor 4 is done) or is this only the {b} wave of this consolidation?

Frankly, the chart could not be any clearer, IMHO. If we drop through 710 or even 700 and leave the channel, then I would concede that we only had a min-4 and that the consolidation party is over. But as long as we remain int his channel all this is just mental masturbation.

There are others who bring up the question of whether or not we are already in Primary {2}. Valid question indeed, and yes – it is a possibility. And again, the chart provides us with clues to that effect. If we bust through the yellow Separation Zone (sorry, no cutsy names today) then probabilities start to clearly point that way. However, in addition to price movement I would like to see momentum indicators swing a bit harder – what I’ve seen yesterday and even the day before is not the type of snap back rally I envisioned for the onset of 1 of (A) of {2}.

Gold is pushing up strongly, and I get the impression that we might perhaps see an expanded flat (psalm 47:1-33 in our bible). I have circled the areas where I would dip into short positions. Feels a bit early right now to jump in – that’s just me – I could be wrong of course, so if you are long term trader you should care and this is good entry.