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Thursday, November 30, 2023

Taking another look at this rally in Gold

 A 1 day short covering rally in gold, which was telegraphed by Fast Money traders - weeks ago - doesn't a bull market make, and any time I see the usual suspects pumping a rally on TV, I usually take the opposite side of that trade; at least in the longer term; so perhaps my opinion is overwhelmingly bias, but the fact remains, gold has NOT broken out. Talk of a breakout is just talk 

1. Is the $USD crashing? No, despite what the host of Fast Money falsely reported this week.

2.  Is the 4th time (testing the$2000 level) - in 4 years - going to be a charm? Maybe 

3. Could we see another false breakout  - like the one we saw earlier in the year? Possibly 

We know the rats of Wall Street will drive anything into a breakout, in order to squeeze a few short sellers, and especially on low holiday volume. 

Couple things in the charts; to add to what I pointed out yesterday: 

$USD - Doesn't look like a "crash" to me. 

$GOLD Weekly View - 1. Buying of the moving averages. 2. The slightly higher false breakout we saw earlier in the year. Does that count? Not in my book. Looks like a quadruple top; if there is such a thing. 

$SPX: Gold The rug was also pulled on the $SPX priced in Gold. Who does this? 

Another thing I noticed yesterday, was that Silver was also driven higher.... 

$SLV - Silver - another orchestrated 1 day short squeeze. Looks like a bearish zigzag pattern. If you know Elliott Wave Theory then you know....   

I think it's more likely that yields are about to spike, with the $USD, and that will likely crash gold, or silver, or both, so watch for that.   

What I can't figure out is, why did traders choose Wed. of this week to pull this stunt?  

Take care, AA 

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