Bullion Fib Studies
posted Jun 25, 2006 at 09:43PM
Bullion Daily Chart
Well the short story is that I think there is a possbility that the last peak actually designated the formal end of the first leg of the gold bull. It felt like a fifth extending wave.
So if true, then that is good news for the longer term (for gold bulls), but in the near term it suggest that there is more down-side risk - as we are talking about a correction which digests the entire gold bull to date.
This would correspond with eight year cycle bottom and the USD finishing off its higher order counter-trend rally. This will also coincide with my continuing belief that the Fed will keep raising rates until the market crashes. At what point will that be. History says about 6%.
The reinflation game that will be attempted after that, will of course be something you will want to participate in.