Posted by: stockscooter | May 8, 2012

Big Bad Bear

Well, that didn’t take long to resolve.  Gold has initiated what looks to be a primary wave 3, downward.  It’s broken out of the triangle with a vengeance.  This could be pretty big, because most people are still bullish on the yellow metal.   A fresh taste of deflation and people will reconsider the direction gold takes during deflation.  Many believe it goes up, but when real deflation hits, not just theoretical deflation, all assets go down, particularly those that have a lot of profit in them.  The money is needed to pay down credit. Could this be the recognition of such thinking?  We’ll know by the type of retreat that is realized.  See my previous post for price target and primary wave structure.

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