That was well put but being a day trader that has traded over 2000 trades this year and been wrong 5 times my thoughts are sound when plotting 5 year 3 year down to a day chart.I know that 88 will be tested next week and if the fed makes a move like I said comodities will be crushed.The dollar doesn't have to rise much to make this happen. Our country is on the brink of everyone being poor and the only solution is for the fed to make these next steps. When this happens all comodities will be cut in half!You must know that any stock or comodity can drop 10 times as fast as it went up.It is true I'm a chartist and if GLD breaches 90 we will see 88 next week.If hedge funds need more capital they will sell their winners.Why dont you think the fed will do what I'm saying before the election.
Ok, perfect. Gold 450 , Dow would drop to 450 from 13000. for a 1:1 ratio.
Ok, gold 1000$, DOG 1000$ that'a fine too.
OR GOLD 10000$ , DOW 10000....that's more like it.
If gold drops to 450, you would have an unprecedented economic collapse which would cause house prices, car prices, wages , commodities to fully collapse.
These short term margin calls (total act of desperation of last resort) will only last a very short while. IT DOESN'T CHANGE ANY FUNDAMENTAL idiot. Your 30 years doesn't impress me at all. I have seen 2 year traders 10x better than 30 years. Some have it, some don't. I actually like this kind of panic from people. SELL ALL :) Then what, buy US 10 yr bonds at 3.4% ? with a falling dollar (20% per year) ??? or buy hot stocks with a total depression surely here? Cash can be good ...but beleive me, this economy will only accelerate downward at light speed if any dollar rallies comes up. US needs a lower dollar...pronto!!! US NEEDS the world to bail them out and they (like all other countries) are printing like pigs...cutting 0% rates only gives you 0%!!! They have ran out of stimulus. FED is done with their "power" and this weekend act, is only the kiss of death. April 28 and other dates , FED WILL CUT CUT CUT interest rates again and again.
Guess your chart doesn't tell you that?
Jim Sinclair is right, bunch of people relying on day trading , bar charts, are getting cleaned out most probably since they have totally lost any fundamental reasoning.
If gold falls, I will only buy more period...like all other 55 pullbacks in the last 6 years.
oh, and Vony....in case your "chart" doesn't tell you this:
In my weekend National Post (Financial Post section) you may want to check it out to see how "strong" your US country really is. It's clearly melting down like snow in the park.
"Gloom in the Sunshine State (Florida)"
excellent article saying now there are BUSES with stickers "Foreclosure Tours R US" going around Florida showing people foreclosure houses selling at 50% to 75% cheaper and it's in Fort Myers, Cape Coral and even some ocean front condos!!!!!
page FP5: ...the value of his oceanside condo - and most other Florida homes - has plunged about 25-30% in the past 18 months!!!!!!!!!!!!
And bottom line, people are showing desperation, can't sell, flooded with inventories, empty houses, etc, etc.
So your US dollar is going straight thru the floor, and gold will go straight to the moon.
see you in 2012 at gold 10000$/ oz Vony.
or see you at 450$ and DOW at 450 and I will be able to buy 10 houses with my gold compared to now....anyways.
All I can say, you guys have the worst President, worst corrupted Wall Street clowns, politicians and even FED bankers I have ever seen in my 25 years of trading. They are desperate, and I can see why, but mark my word, money printing by the gills is the order of the day for the next multi number of years.
Total meltdown is assured for all asset class including houses, paper money, cars, many commodities BUT NOT GOLD. Gold at the end will buy you much much much more and preserve your purchasing power regardless of what happens UNLESS a total money contraction -20% per year happens for the next 5 years!!!!!!
I think they will try and I bow to your expertise in this field. Can they do it that is the question and if they do how will the world react. Don't get me wrong I want you to be right. But I am not shorting gold.