Gold is sitting, perching, just above the $1,206 support level, after having penetrated it in last Sunday’s Asian trade.
Should we get a close below $1,206 tomorrow, basis the August futures contract, we should still see the accelerated decline into the June 21 target low area, shown on the previously published forecast chart republished here (which other than the thin black line, the price of gold, has not changed).
That latter June low can come in as low as the $1,140 level.
This decline has hurt many large traders. I, on the other hand, am thrilled that I’ve received many emails thanking me for keeping so many gold investors out of the market, when so many other analysts were screaming buy.
Timing is everything; don’t forget that. That is also why I spend so much time studying the nuances of timing cycles in various markets.
Other markets are acting largely like gold is right now – ready to make a big move, and hovering near important inflection points.
The euro is on the verge of a major decline; the U.S. Dollar Index on the verge of a major blastoff.
Bottom line: Just about everything is on the verge of going our way, with some positions already showing large double-digit profits. Hold all positions and related stops.
This includes the new SPDR Gold Shares Aug-16 121 Puts (GLD160819P00121000) and ProShares UltraShort Silver Aug-16 40 Calls (ZSL160819C00040000), both of which are doing well.
The Direxion Daily Gold Miners Bear 3x Jun-16 2 Calls (DUST1160617C00002000) … ProShares UltraShort Euro Jan-17 28 Calls (EUO170120C00028000) … ProShares UltraShort Euro Aug-16 24 Calls (EUO160819C00024000) … and the underlying inverse ETF for the euro, ProShares UltraShort Euro (EUO).
As to the stock market: Keep an eye on the 18,200 level. If any rally to that level fails, it may be the last time you see the stock market above not only 18,000, but 17,000 as well.
I’ll recommend the appropriate trades on the stock market as soon as I get more direction from the data and my models on the stock market.
Stay tuned and best wishes,
Larry
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