For about the last year and a half I’ve been warning that gold was being driven down to test the last C-wave top ($1033). No one believed me.
Now that the test has occurred it’s time to go the other way. Again no one believes me. Traders have become so conditioned to gold going down they can’t envision any scenario where it could possibly go up. And that is exactly the kind of sentiment that occurs at major trend changes. We saw the exact opposite sentiment at the stock market top several months ago. Right when I was warning everyone that the market was going to crash.
I’ve covered extensively the 3 year cycle low that is due in commodities this year, and posted numerous charts showing how I think it occurred last month. If the CRB has formed a major 3 year cycle low then I don’t expect gold would diverge from the rest of the commodity complex, and in fact it looks to me like gold bottomed about a month ahead of the general CRB.
With all the talk of deflation bonds having been signalling inflation for almost 8 months now, still no one is paying attention.
Folks it’s time for some of the inflation that has been pouring into global stock markets for the last 6 years to start leaking out and moving into the commodity markets.
With gold confirming its daily cycle low yesterday, and that low occurring well above the intermediate cycle low of July 24th, the metals are set up for a barn burner rally. And don’t forget that sentiment during the move down into the DCL has dropped all the way back to 13% bulls even though gold didn’t make a lower low. That’s means there is lots and lots of fuel to drive a very big rally during this second daily cycle.
This is your chance to get on board on virtually day 1 of a new daily cycle, and probably day one of a new cyclical bull market. If you are determined to be one of the 90% that are always on the wrong side of the market at major turns then just ignore this article. If on the other hand you want to change the old destructive habits and buy low for once then now is your chance.