It’s Dead, Jim!

UPDATE 2:34pm EDT: I just spoke to Bones and we both agree about the blue scenario at this point:

Either it’s dead, or worse than that – alive without a brain!!

Well get final confirmation of that at 864.31. What I also know is that we’ll probably see some strong resistance around 881 for the same reason I have bored you guys with for a week now – it’s the 23.6% fib line of Primary wave {1}.

What I am not so sure about is the exact wave count – this was a very shallow fourth Minor wave – but it has been in the theme of what we’ve been seeing all month. As I’ve said before – in this tape I am very hesitant to trade against the trend (which is obviously up). What I am waiting for is a confirmation that Intermediate (A) of Primary {2}  has concluded and that probably won’t come until later next week or the one thereafter.

It sure pays to be patient when it comes to trading Gold – my GLD puts are loving today’s drop. Let’s hope this is the gist of this little consolidation and that we are ready to proceed lower – I have burned enough theta on this sucker. Trading Gold related options is not for the faint of heart – I tell you that. If the ZG contract just had more volume…

UPDATE 3:15pm EDT: We have confirmation folks:

UPDATE Closing Bell: Now that was an ‘interesting’ day – it sure was NOT uneventful as I predicted yesterday.