@eshmun if both you guys are of the mind set price is...

@eshmun if both you guys are of the mind set price is manipulated in the short term then have a look at XAUUSD which is the metal quote that is driving the world sentiment post Jackson hole. See how the low of 21.07.2016 was taken out by less than a buck yesterday NY session and recovered. I don't think that is coincidental. I was almost expecting this to happen eventually but hoping that price could reverse before it had the chance.



However there is a further swing low highlighted where I suspect the algos will target using the NFP this Friday. The trend of gold is still up. The mechanics of this stop sweep is similar to end of MAY 2016 when price broke out (flag pole) then ranged for about 4 months before the swing low was taken out before the next leg of the rally could trigger. At the time I thought the algos would target a further swing low first like the current scenario but that part was wrong from my perspective. The problem with the short term bulls is that the minute the swing is broken, they flip directional bias going from with trend to counter trend trading.

Unfortunately stocks which is a highly leveraged play on gold price will have bigger swing % understandably and the current $5.89 top to where we are is a 32% haircut on valuation. This would rate the retracement as the biggest one in its history.

Bargain? That would depend if the NST investor is a swing trader or a merged TA/FA or pure FA trend follower generically speaking. I suspect with NFP on Friday, there will be very little positive price action on any gold stocks and it will depend if NFP beats market expectation. As Eshmun have been saying sentiment and fundamentals are contradicting simply by the XAUAUD that is holding value and should be reflected in the P/L next quarter. The sentiment is being driven by a much higher rate rise potential and not necessarily the 100% confirmation.

Personally I am looking to get more gold stocks exposure but I'll wait for the NFP to pass off first. Good luck to the investors.