[GLD] breaks out of resistance with gusto

In the backlink I provided a model with a clear watch point marked by unusual bold exclamation points.  It was my primary model that gold would break out here.  I unambiguously wrote, "I think people should be sure to mark their charts with alarms should GLD break out of the upper down sloping rail as I think it will."




I'll leave today's chart fairly unmarked so that you can easily see the gap that occurred over that important resistance line.

For those of you who might have been a little slow on the uptake, do not chase!!  Never chase.  It's all a continuum; a set of waves.  Wait for the first 3 wave pullback.  I don't know that we will get it, but a closing of the recent gap along with a back test of that upper rail from above would be a nice entry point.  Another idea is to go after USLV.  It is still only trading at 11.91 which is really not that far off its lows.  Gold is the senior metal but at some point silver will catch a bid and the volatility will be higher.  A lot of experienced traders will start off owning the senior assets at the bottom because they are likely to be early movers.  But once the big early % gains are made here, transfer the cash to the late blooming juniors for even more upside volatility as the juniors go into overdrive playing catch up.

Having said that, there is still a chance that this will turn into a DDT and so I would not suffer through a break down back below that top rail.  It used to be massive resistance and now that it is broken out it needs to serve as support.  If it doesn't do that then become very suspicious very quickly.