OK, so two days ago I went through a "technical analysis" review and concluded we were NOT out of the woods... yet. As to that statement, let me ammend it. While we are not out of the woods, I see a clearing and it's time to begin to add to positions or take new positions in the Gold, Silver and the mining stocks market.
As Archie Bunker would say, even the fine staff at Marko's Take is not "inflammable"!
The call we made a few weeks ago to lighten should turn out to be valuable. So should the call that a waterfall decline in stocks is squarely ahead. But for now, let's focus on the barbaric relic.
Why the change? Gold has recently bottomed twice at the $1,075 level and held. In the last two days, it has rallied sharply. An interesting pattern, known as a "pennant", is forming on the chart. So, unless Gold violates the $1,075 level, we are forming a VERY constructive launching point for the yellow metal to vault significantly higher.
What should we look for from here? Based on the chart pattern, Gold will do one of two things: either retest the $1,075 level or thereabouts again, or it will pause and shoot straight higher. While it would be normal for the re-test, it is by NO MEANS guaranteed. Therefore, waiting for a re-test may turn out to be a major mistake and prevent one from re-boarding the train at what is, in the great scheme of things, a fantastic entry point!
As of a few days ago, it was impossible to tell where this "correction" would take Gold. What makes the pennant formation so useful, is that we have an excellent "stop loss" point of $1,075, and the opportunity to hop back aboard the train at values NOT LIKELY TO BE SEEN AGAIN WITH VERY LIMITED AND SHORT TERM DOWNSIDE!!!
Marko's Take? Green Light! Strap on your seat belts and get ready for the ride of your life!
You know what to do if you think I'm full of it! TAKE ME ON!