Time to get your [GLD] on

The model in the backlink expected one more pretty good dip on GLD before hitting the lower rail of the falling wedge that would mark the end of blue 4.  GLD's dip today and then subsequent strong reversal meets this requirement.

The actual buy signal for most people will be the breakout of that rightmost downsloping rail but I bought 1/2 a position on JNUG today in the AM and will likely buy the rest at the close.  I expect a gap up in GLD tomorrow above that downsloping line.  They'll want to move it back up after US markets close in order to catch as many people off guard as possible.  Given the throwunder of the lower rail after 5 rail bounces and then the subsequent move back up into the channel which happened with gusto and in the form of an intraday reversal, I think the odds are very high that we just saw the bottom.

I want to re-note how the point at red a is not part of the current wave.  You can see how it was a guideline for the bottom but that the chart ultimately did not touch it.  This should not have come as a surprise since I wrote in my last post, "Note that the bottom point in Nov 2014 is not part of the current wave.  That is why I purposely did not use it in the last post.  The end point of the last wave often helps determine support and resistance in the current wave but it is not part of the current wave.

Bottom line, the chart may get a bit closer to the lower rail, maybe even touch it, but then it is most likely going to reverse upward with authority as shown."


By far the most important support line was that of the falling wedge.  And the throwunder of that line happened perfectly.

The coming move up should be very strong but I caution people not to buy too deeply into any "fundamentals story" AKA fairy tale.  In the very long term the fundamentals will always matter and it is fundamentally true that the dollar is a corrupt currency just like all global fiat currencies.  So gold will eventually skyrocket.  But it is also fundamentally true that the dollar is highly inflated due to the massive and global use of fractionally reserved, dollar denominated debt.  When that implodes the dollar could get stronger in the mid term until all of the debt is repudiated like Greece and then Spain will likely do in 2015.

The nature of the coming move up for gold should be 5-3-5 in nature in order to complete this rising wedge.  The C wave of this should be especially clear to read, leaving no doubt that panic gold purchases are being made as doubt increases regarding the ability of the global fake money con game operators to perpetuate the scam.  Ultimately I think it is still too early to count on global collapse.  In early 2017 I will probably be singing a different tune and by early 2018 I suspect that a major global collapse, perhaps even WW3, will be upon us.  Anyone who thinks that the biggest scam in the history of the planet will go bust without some kind of major war is just not thinking straight.  Why?  Because someone has to pay the bill!  There will be winners and there will be losers and the losers will lose everything including the potential of losing sovereignty.  More than one leader could possibly, when faced with this outcome, chose to go down in a fiery nuclear ball than simply accept defeat.  Nuclear war is not assured, nothing is "assured".  But I suspect that world war is already baked into the pie.