Screaming signals. Gold gaps and a power bar. Actually we don’t think there is an explanation for this action. Peripatetic pundits natter on about inflation, Iraq, tea party terrorists –but to us it looks technical. Gold was pressed down and pressed down and finally it sprung (spranged?) back up and so we added on to our gold position — already being long gold as we laid out in a previous letter. We also added on to our silver position:
Same thing for silver. Big gap and big power bar. Screaming signal. Especially significant in this case as it surges across the long term trendline.
The miners, GDX, participated in the gold rush:
Readers know that we are skeptical of the precious metals, but we are not skeptical about the chart signals. These are strong and undeniable.
Yesterday we were rewarded a windfall by a 15 point gain in the SPX (our accounts, and presumably yours being up to the hilt in the issue). Richly deserved for sitting through tedious and discouraging months and suffering the slings and arrows of outrageous pundits who have a different sky falling every morning. We think it was Jesse Livermore who said ” My butt made me more money than my head ever did.”