how many ounces, page-34

POG had a big hit overnight. I had a feeling it would the way it wasn’t bouncing off 1360 for a couple of days but unfortunately didn’t act on that feeling in case 1,350 managed to hold. Disappointing but if I did short just above support and it bounced last night I would have cursed my self - that's the market, can't win or catch every trade.
If it did break 1350 it was always obvious stops would be triggered and the fall would likely be significant on the stop loss selling. If I did go with my gut, I might have shorted some high costs producers to hedge my ABU and MML low cost producers. Problem is that there were a few times recently I thought about shorting but those stocks rallied hard and I was glad I didn’t short, so it put me off this time.
Question now is; is this one of those times where selling or short selling will back fire after a big fall?
Tough one- Most high cost producers will open lower and most high cost producers (and even low cost producer MML) have already given back large parts of their 2-3 month gains after 2-3 weeks of correcting. So will today mark some sort of a short term low point, with a strong bounce tomorrow or even today off whatever lows they put in? I like my ABU regardless of these wild swings in gold but is it too late to hedge? The whole picture stinks of manipulation again. Producers began to correct heavily on a day when gold gained and was still trending up. Profit taking or big money setting up another scam? They continued to fall into yesterday as gold hovered above support. Gold breaks support triggering stops (too easy to do by big money wanting to cover shorts or add to longs). They buy on the panic selling and when filled they begin the next rally. “Thank you suckers”, and they get away with this criminal manipulation as often as they want.
The chart below suggests POG should be bouncing much higher soon, to around $1700. All this taper talk is nothing more than a distraction over the real picture and what really matters to gold but all you hear about on CNBC and co is taper, taper and taper. You won’t see a long term chart on the effects on gold of taper talk! This chart shows a strong correlation to the US debt. Is this a time to be looking for a buy entry point? Perhaps gold will bounce hard the day they announce the taper considering it’s already priced in but the growing US debt is not priced in by a long shot. FOMC meeting is Tuesday. Will gold stocks reverse higher before Tuesday? Any “surprise” delay with QE taper should see an aggressive jump in gold. Long term fundamentals are still strong but volatility is not going away. That volatility is useful for trading when you time it right but a nuisance for investors.

The second chart shows even at $1800 in 2012, gold is still lagging behind money supply growth (inflation). No wonder so many producers are struggling with margins as costs rise with inflation but even at $1800, gold is lagging.