The purpose of the gold downthrust was to dislodge investors, and indeed it tripped our long term stop. Then true to form, like a greased pig it put in an island reversal and spurted up. This is a buy signal. Silver did somewhat the same thing. It gives one the uneasy feeling that these markets are being manipulated.
This formless bungee mareket speaks for itself. These patterns are pictures of deadly conflict, of fear, panic and angst. It is totally out of control and to be avoided by rational investors. Until the horizontal lines here have been decisively taken out (by 3% or more) it will be no place for gentlemen (and lady) investors. Here is the wave analysis dissection: 13 day panic wave, then waves of 5,6,8,8,5,5, and 4. Only the truly crazed or teen age video game players can make money in markets of such chop. That the pattern continues reflects the economic realities. Political gridlock in Washington and Europe and trouble in Greek restaurants the world over.
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