On March 10, 2009, the day after the equity markets bottomed we noted that the day's 5% upmove was the real deal and said:
...I'll go with Faber on the timeline, at least three, maybe six weeks before we see a change in direction, i.e. more than a one day move...referring to a call of Marc Faber's made in February but which we thought was early (it was, by three weeks and 10%) and didn't post til Mar. 3.
The reason for this humblebrag?
Even though we were incorrect in looking at the stock market move off the bear market low as a 3-6 week trade, the fact that we were on the right side of the market made staying long easier when the time came to re-evaluate after a month. Getting off on the right foot makes everything easier.
Same for gold now. Long with tight stops is the way to get the most from the risk we've been exposed to since late June.
Front futures $1366.70 up $33.30. The next target would be that late-May-June cluster at $1400:
July 2, 2013
How High Can Gold Bounce?
$1360.Just remember, from the July 17 post "Gold Does Not Like Bernanke":
Remember, gold bottomed at $1179.40 last Thursday and it wasn't until yesterday that most pundits started predicting an upmove. By that time we were already at $1240.
We, on the other hand, were early, having posted "UPDATED--"Charts Suggest Gold Will Bounce" (GLD)" on the 26th at $1226. It crawled up to $1244 and then dumped to the above-mentioned $1179.40.
Which prompted "Gold Breaks Under $1200" on the 27th. And a visit from Hunter S Thompson.
We've been generally well served by taking the low I.Q. approach to the investing/speculating/flat out gambling spectrum....
Gold is going higher, $1360 is the target we pulled out of our backside in late June, albeit 15 hours and $46 bucks above the $1179.40 intermediate low.
V bottoms, hate em.
Then $875 and within 150 years $100, that's right one Benjamin....
