Gold pattern pointing up, page-1142

As you may well know by now that I use GP/USD as a trigger on my sentiment on the underlying gold stocks. I stopped falling in love with a sector or stocks post GFC and that was a very good lesson to have learned and I did survived it to remind myself never to repeat it AGAIN!.

The way gold is stuck in the block and only tried to breakout lastweek, in all honesty the daily weekly trend is down. We each measure the trend differently but personally I look at the swing points and lower highs BUT the troughs are not getting lower. Maybe a wedge formation who knows right? Currently in the middle of the daily range of 1140-1307. I don't like playing middle of range long or short but momentum traders might. Hence it is reflective of the gold stocks, probably off its lows but not quite testing highs. Again middle of the range stuff and it can go either way. I have my targets but prefer to let it go then chase so a matter of discipline.

Personally exponential movement is independent of the underlying measure of the asset. Look at the historical Dow,sp500,dax,ftse,gold,silver,IO,Uranium or any exponential rally and you will see that when it becomes frothy, the profit takers comes in both current long and with the help of the shorters in a death spiral. There is nothing special about gold, just another asset class. If you bought a picasso or mondrian masterpiece in 2007/2008 and try to flog it in 2009 onwards would you get a lofty valuation for it? Stock holders can blame their lucky streak on multiple QE and sustained seamless globally for the inflated pricing.

The problem with holding a stubborn view is that when you are wrong you talk yourself out with reports/research to support your view. The fear of selling out or profit taking only to see the profits mount exponentially post closing your position. If everyone knew the future than we have a different strategy LOL. It is the greed and the fear of losing additional profits that keeps sucking an investor in and wait. Ditto the losses.

Hence I get tired of the chatter by the bulls and bears each "knowing" the extreme scenario. Price capping especially, which is repeated like clock work in any stock posting with regularity that I get a chuckle each time! That is why I brought out the beef jerky/bake beans facetiously because when Armageddon credit crunch comes globally who cares about gold. You can't eat it!

Now that we are "seeing" gold taking off, could some of the short sellers be the physical gold producers hedging their forward gold sales? I would suspect so.