28 May 2009

"Gold's in a major 3" say the Gold Guru, the jailed long waver and the technician

They said that housing was a bubble and that the stock market was doomed so they might be right, but like then, early. But they likely have the big picture plain. Peter over at arabian money sumarises the last few penny drops as follows...

1. Gold reacts as currency support for the dollar enters mid June to a slow decline (that is the official definition of a strong dollar policy, really).

2. End of 2nd week going into the beginning of the 3rd week of June Gold launches towards and this time through the neckline of the reverse head and shoulders formation.

3. Gold rises to $1224 where it hesitates.

4. The OTC derivative market takes on the dollar as short sellers into dollar support.

5. This OTC derivative currency short position builds.

6. It is the US dollar where Armstrong will get his WATERFALL.

7. The main selling takes place when Israel makes a major miscalculation.

8. Hyperinflation is always and will continue to be a currency event.

9. Hyperinflation will be a product of the upcoming massive OTC derivative short dollar raid.

‘Should I be correct in the gold price action going into late June, it will fit Armstrong’s criterion for a move to $5,000′, adds Mr. Sinclair whose predictions are not always right, and who got similarly carried away last summer.

But there is the old mantra in forecasting that if you repeat something often enough then it will be bound to happen in the end. And to be fair to Mr. Sinclair the gold positive scenario stacking up right now does look unstoppable.


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