Loading ...Gold Cycle Update
Gold may appear to be getting a bid here in a flight to safety but according to my Cycle analysis, it has found its low for Trading Cycle 1 and is now on day 3 of TC2 here. Silver and the Miners will likely struggle here as the carnage in stocks continues (similar to August) but it is possible Gold may move up and test the 1120-1130 area. Why?
Because to confirm a new Intermediate Cycle a Asset usually needs to test or break the IC downtrend line out of the previous IC High (see my second chart for GDX where this scenario has been met).
The Gold chart is from yesterday, where you can see the reversal pattern on Day 29. I find it interesting that the Red IC downtrend line intersects my Blue price uptrend channel in early February where Norvast has an interesting Gold Gann date on Feb 3rd. I have been long UGLD here from yesterday (no Miners, as they have likely topped and should be shorted after the bounce in Gold completes).
I believe the next IC Low for Gold will be in late March to early April which is about 4 months from the Dec ICL (the last several Gold ICLs have been running shorter at 4 months as the Bear ages here).
Added: Here is a Freebie from LikesMoney on the Miners. He agrees that TC2 failed (he calls them Daily Cycles).
https://likesmoneycycletrading.wordpress.com/2016/01/19/miner-break-down/
Took some very nice profits on my one day UGLD trade as Stocks look like they may be forming an inside reversal today which you sometime see near capitulation events. Sold UGLD when Gold was at 1107.
I still think that Gold will go higher but this may be it for a correction Wave A up. I will wait for a Wave B down to form and then I may buy it back for, hopefully, the Wave C top between 1120 – 1130.