Sunday, December 17, 2006


Does this chart have the similar break down signature that appeared late last summer?

In many respects it does NOT. What is similar is that on Friday we got below $620 in somewhat violent fashion and within striking distance of $600. But the key distinction to the failure at $650 in September was the rapid downward knee jerk back to $600 vs the slower decent from $650 we've seen thus far this month. The way I read RSI and Bollinger leads me to believe that there's room to the downside toward the $600 area IF the dollar can drift a bit higher over the next few week. Who knows what kind of games were being played on Friday.

AM I SHORTING IT TONIGHT?? I don't have a pressing need to jump on a gold short unless I see sudden negative momentum, or a catalyst to grease the next leg lower (eg. slide in oil; Ahmadinejad receives Dr. Scholls for Christmas, starts Jellin' and makes nice with everyone; dollar rebounds).

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