The Quickest Backtest Is The Most Bullish
As I have stated on previous occassions, both with the precious metals breakouts and even non mining related stocks, when you have a breakout, it is very bullish to get an immediate backtest, especially if gaps were created. This gets the test out of the way and allows the stock(s) to continue on their upward path, in short order. That is exactly why I was specific in my post on Thursday, that I expected to see 1900 gold “either tomorrow(meaning Friday) or next week, depending on the jobs report”. I wasn’t sure at the time if the job number would be weak, to reinforce my call(and a number of others) that the FED would pause after the June and July 50 basis point rate increases. Gold and silver(as well as stocks) were so strong on Thursday that the FED had to reel in expectations, so they had Brainard tamp down those expectations by poo poohing talk of a pause(I said they wouldn’t announce it before, either the July meeting, the Jackson Hole get together in August, or the actual September FED meeting. To reinforce Brainard’s denial of an upcoming pause, they doctored the unemployment report to look stronger than it was(especially given the more accurate ADP report was weaker than expected). They didn’t want gold and silver and stocks to follow up on Thursday’s runaway train. They reeled them in, ie the backtest. This week is the window to get aggressive. Either, it is quiet early Monday(not likely) or Monday shows renewed strength in the metals, whereby expect a minor Tuesday pullback, so by the end of the week they should be climbing again. Don’t know what the excuse will be for gold to near 1900 but it should come soon. There should be significant resistance at that level, at least for a while.
Fed likely to do a 180 before September. The market will smell this early.
Next be could be up to $10 trillion.
They need to create the reason for that too.
I wonder what that will be?