Don’t Let Gold Lock You Out

Although I had become far more optimistic recently and my stance of late had rapidly shifted towards the bullish side, I certainly wasn’t expecting a $40 surge at this point in the Cycle.  But that’s gold for you, easily capable of leaving traders behind while making extreme moves.  What I like most about this move is that it was not reactionary, it did not respond to a fleeting sound bite.  It also did not come from an oversold position where you would expect a natural counter trend bounce.  What I had warned members about last night was that gold was looking stronger, and that a move above $1,285 would be completely out of character for a final (falling) Daily Cycle.  Therefore, any move above $1,285, especially on a closing basis, almost certainly would have meant that gold had already begun a new Investor (Weekly timeframe) Cycle.

 

 

What we have here is a good old honest “recognition day”, as traders suddenly realized that they needed to be on the other side of this trade.  For Cycle’s followers, this more than confirms, no it essentially guarantees, that we’re now in a new Investor Cycle with potentially 12-14 weeks of upside ahead!  But more importantly, it brings us that much closer to confirming my call for an end to the gold bear market back in 2013.  If my longer term expectation holds, then a resumption of the gold secular bull market is already underway.

If anyone does not have any exposure to this sector or has found it difficult to buy into this surge, don’t be disheartened.  As I’ve expected since the December lows, this is now likely that successful retest of the 2013 bear market lows and a resumption of the bull market is now underway.  There will be plenty of opportunity to capitalize; gold still has a 45% move to eventually match all-time highs, while most precious metals miners are still 75% off their highs.