• 13 hours BlackRock Makes A Run On Asian Stocks
  • 20 hours Gold Prices Surge Above $1,800
  • 2 days Chinese Stocks Soar On Bullish Economic Data
  • 2 days Apple’s “Holy Grail Of Data” Leaves Energy Traders Disappointed
  • 2 days Gold Rally Adds $250 Billion To Top 50 Miners' Market Cap
  • 3 days TikTok Is Becoming A New Battleground For Tech Politics
  • 3 days Peru's Mining Industry Pummeled As Coronavirus Cases Surge
  • 3 days Why The World Is So Divided In Its COVID-19 Response
  • 4 days Equities Cheer Stellar Jobs Report, But It May Be Fleeting
  • 5 days Is Tech Billionaire Peter Thiel Done With Trump?
  • 5 days Musk Takes To Twitter To Troll The SEC
  • 6 days Lunar Mining May Commence As Early As 2025
  • 7 days Immigration Will Go Bust Without $1.2B Bailout
  • 7 days The Economics Of The Space Race
  • 8 days Why The World's Central Banks Aren't Yet Sold On Renewables
  • 9 days How Much More Cash Can Uber Burn?
  • 9 days Inside The Biggest Counterfeit Gold Scandal In Recent History
  • 9 days EU-U.S. Trade Relations Are Deteriorating
  • 10 days Over 184 Companies Have Bailed On Facebook
  • 10 days BP Sells Petrochemical Business For $5 Billion
What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

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