How many investors accumulated the third count or "hook" in October 2008? The short answer is not many. The 2008 hook which started in mid October and bottomed in October 24th as panic soared was completed on November 21st (see chart below). The price of gold at each stage was $800, $712, and $775, respectively.

Just like 2008, nothing has changed (or changing) today other than underlying control of the trend. The formation of the third count illustrates a reshuffling of paper control from weak to strong hands. This game is all about control. While history is repeating, it's highly unlikely that anyone other than "invisible hand" is accumulating today's “hook."

click on the link for the chart.