Friday, October 30, 2009

C wave intact

I've been pointing out ad nauseum how strong this leg of the gold bull has been. So far we've seen the strongest A wave advance of the entire secular bull, the weakest B wave decline of the entire bull market. We seen countless head fakes by gold, all of them have resolved bullishly.

During the recent correction selling pressure took down everything (this tends to happen at intermediate cycle lows). However gold held up remarkably well only dropping a measly $55.

As a matter of fact all gold did was test the recent breakout level of $1034. Gold did the same thing during the last major C wave advance. Once that test was completed the C wave took off to huge new highs.

As soon as gold breaks through the recent highs at $1070 we should be heading into the most lucrative part of this C wave advance.

A period that no one can afford to lose their position in.

As I've stressed many times in the past trading a C wave advance isn't a very profitable strategy. Once gold moves into one of these stages you simply have to close your eyes and hang on.