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    Chart Gallery Hot Money Turns Cold 12.30.19

 

 

Gold

The gold analyst is a gold bugs, they are always bullish from the ’80s and the most recent bull run and will never change. They are fixed in their ways and hate fiat currency. Be that has it may, commodities including Gold have similar patterns of panic buying highs after ten years of the rally followed by 15 years +/- five years of correction.

The chart used here shows the target area of 1650 +/- 50 and for that to be the end of a post triangle “B” wave. That would end an A-B-C corrective pattern before the next leg down in the bear market.

This fits with the bearish outlook we have now adapted for the USX and the bullish outlook for inflation, at least for the Short to Intermediate-term.  If inflation sustains, CT may need to adjust its longer-term outlook for Gold.

For S-T traders here it may be worth a long sided trading strategy here. The last chart shows the breakout and a momentum surge by CMB and RSI. The I-Ching puts it this way,”  A hot fire burns twice.”  In other words, extreme readings of momentum beget more surges in momentum.  Buy dips and play the break.

USD

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