Bulls are digging in here so one can only hope that their conviction remains firm enough to take the price out of the danger zone and back above the $1,600 level. Such an event would trigger some sizeable shortcovering among the weaker-handed bears.
Failure to hold today's low sends the market almost immediately down towards $1505 - $1,500.
Last see what we get in trading tomorrow to end the day, week, month and year. Currently we are seeing buying coming into the Asian session. No doubt some of this is shorts ringing the cash register to go out on a winning note for the week.
Happy New Year Trader Dan.
ReplyDeleteI want to state that I beleive in the usefulness of technical analysis - and that I have used it with success during my investment life. I recently stopped using it for the simple reason that if the Fed can grow its portfolio by several times - it is not going to just sit on its hands - ie they can severely distort the very price movements that we study.
On King World News, London Trader, said that gold was stable around the time of the London price fixing - then the paper shorting of gold starts. I believe this to be true.
Applying this rule for this week for the price of gold quoted in the newspapers here in France gives you a range of 2.1%. Then from Monday's high to yesterday's low gives you a range of 5.8%. For reference: the price for gold on Monday was 39710 euros - Thursday 38890 euros per kilo bar. Not once was the quoted price under the indicated price in euros given by Kitco. The smallest pemium was 2%.
Conclusion: to buy physical gold you will have to pay a premium - hoping that someone will be willing to part with their physical.
Tough time right now. Been accumumulating mining shares again, and assume this slaughtering will end in Jan, Feb at latest and a large snapback up in mid January early February. A bet that almost assuredly will payoff in time. Looks like another dead cat bounce, and further retracement down towards 1500, maybe a little lower. The Hui is still hanging around the 500 level. If it breaks down, I do not see it going lower than 450? Dan, if you could give us the technical view of this it would be greatly appreciated. It appears that the Fed Govt is at 15.1 Trillion and with the newly passed 1.2 Trillion more it is becomming obvious there is no will to stop our country from Bankruptcy. I wonder how China will feel when we default through payment extensions, reductions. No other way running 1 trillion deficits while tax receipts decrease. It is unbelievable.
ReplyDeleteBeen buying silver all week, having a Great Friday.
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