Chart, page-39

I have this strange feeling looking at the iter markets the correlations are now beginning to be  back to normalcy. USDX is moving up in anticipation of rate hike. This is suggesting the Feds have more confidence the economy can withstand the perceived weak growth. This in turn is giving confidence to stock valuations.

Gold is the problem that does not fit the puzzle beside strong USD weak commodity prices. It is what it is I suppose. The Soros and Druckenmiller calls are to be treated with a big suspicion! They are not doing us small punters a favor. These are the sharks swimming among our pool.

I have looked at many range plays over the years, gold moving from resistance to support is nothing new. Ultimately $1191 is the ultimately support that if broken I have to admit IMO is all over on this bull swing. Just because price is testing support should not alarm the season investors. Some are already panicking and this is what price action is priming us looking and drawing conclusions in advance. Price could just as easily targeting

Price circa $1208 @28/3/16 & $1208 @1/4/16 have swing lows which is a double bottom sticking out of my charts. I suspect it will be an attraction to market makers to gun those longer bull stops. If folks who bottom picked in Dec and have been patiently holding for 4 months, and they see price now "collapsing" where do you think is the most strategic swing low to make protective profit stops? This is exactly where the banks are also looking at the same chart and seeking out liquidity and I hope to square the short positions! Or else God helps us. Skol, you can wipe that smirk off your face


AUDUSD D1

I still see potential down side objectives on the Aussie but obviously this is just one likely outcome as price could just as easily bounce and head north. However USDX is calling all the shots so it is likely capped. This could be the saving grace to provide a soft landing for XAUAUD in the end. If one is heavily exposed to gold Spec end of town, maybe its time to whip out some risk mitigation plan instead of hope. These are the realities of decisions one has to make with some urgency and I am not providing trade recommendations, just some basic common sense. Those who not so long ago were making ridiculous call of 1400 and 1500 were giving false beliefs that they KNOW where price is going.

This is where we will separate they boys from the men of gold stocks and something I have been preparing ever since I took gold exposure in 2014. It is easy to tell yourself after riding it for a few years or great profit that things can potentially come to an end. We don't know what will happen but we do know what we can control. Good luck.