shakeout coming

This has been my thinking for awhile now.

One massive shakeout that will test the resolve of even the narliest of gold bulls.

Gold Market Update
by Clive Maund

Gold's technicals have been looking very promising in the recent past, but there have been two worrying developments over the past couple of weeks which suggest that we may be about to see a vicious shakeout rather than the breakout to new highs that so many are anticipating. One of these developments has been the very high number of advisors calling for an upside breakout on public websites, as many of you will be aware, and the other is the trend of COT data, with the latest figures being at levels that have in the past almost always signalled a reversal to the downside.

So how do we reconcile the seemingly very bullish chart pattern for gold with the seemingly bearish COT data? Whilst recognising that gold could climb in the face of Large Spec long and Commercial short positions rising to even greater extremes, a more likely scenario is that Big Money is preparing an ambush - a sharp reversal to the downside to shake the little guy out and scoop up his gold and PM stocks at knockdown prices before prices reverse again to the upside and then the breakout to new highs occurs. This scenario is described in more detail in the article BIG MONEY'S game plan to FLEECE GOLDBUGS ahead of THE BIG ONE.

http://safehaven.com/article-14139.htm