• 13 hours Trump Signs Executive Order To Protect Private Moon Miners
  • 1 day Renters Are Striking As COVID Reshapes Real Estate
  • 2 days Nothing Can Stop The Tesla Boom
  • 2 days 9 Ways The Lockdown Is Playing Out Around The World
  • 2 days WeWork Sues SoftBank For Withdrawing $3 Billion Insider Payoff
  • 3 days Solving Transportation’s Biggest Problem
  • 3 days Big Banks Could Win Big On Fed Small Business Bailout
  • 3 days Trump Increases Pressure On Venezuela
  • 4 days Researchers Create Organic Battery
  • 4 days Gold Is Still A Safe Haven, But Not Very Alluring
  • 4 days China Is Buying Up Billions Of Barrels Of Cheap Crude Oil
  • 5 days Are Gold Stocks Going To Bounce Back?
  • 5 days The Politics Of A Pandemic
  • 7 days What Does CHina’s EV Slowdown Mean For The Battery Metals Sector?
  • 7 days COVID Report Cards Will Brand Businesses Forever
  • 7 days Trump Tweet Sends Oil Soaring 25%
  • 8 days Why The Coronavirus Economic Crash Is Worse Than You Think
  • 9 days Is A Global Currency Necessary?
  • 9 days America Has Shed 500,000 Millionaires Since The Coronavirus Lockdown Began
  • 9 days Trump Wants Another $2 Trillion Economic Intervention
How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

Surf City

Surf City

Surf City

Surf City is 60-year-old retired Information Technology Executive and Software start-up Entrepreneur living near the beach in California. He has been an active investor and…

Contact Author

  1. Home
  2. Markets
  3. Other

Gold and Gaps

First, let me say that a new high by Gold in week 16 of this current Intermediate Cycle is an extremely positive development as we now have a setup that should ensure that Gold has a Right Translated cycle that makes a higher Intermediate Low than the December 2016 YCL. Should this play out to Cycle norms, the next Intermediate Low will be an excellent buying opportunity regardless if you are adding to positions or restocking the shelf. My current expectation is that the next IC Low will be in the May/June timeframe with May being a strong possibility.

Regarding today's action, remember that this spike up in Gold and PM's was a "news driven" event. Should things escalate in Syria over the next week or so, Gold will likely benefit but if this turns out to be just a warning shot across the bow, the rally will likely fade as it is getting late in Gold's 3rd Trading Cycle.

Lastly, you know my view on gaps, especially near where one would expect a top. Breakaway Gaps are seen at or near major lows and not in the area of where a timing band is signaling a top. I view the the gap up today as being very similar to what we saw with the SPX in late Feb where we had a classic Island reversal.

Here are some charts of GLD, SLV and GDX showing todays Gaps.

Added: A late day update on SLV showing it has more than closed its gap from this morning. A close below the 200ma and the 10ema would confirm for me that it has started its move into a TC3 Low here

SPDR Gold Trust Shares Daily Chart

iShares Silver Trust Daily Chart 1

VanEck Vectors Gold Miners ETF Daily Chart

iShares Silver Trust Daily Chart 2

 

Back to homepage

Leave a comment

Leave a comment