via Financial Review - Coppleson

The Financial Review in Australia had a story on Coppleson just before news on a change in sentiment towards gold mining.

If Coppleson gets his call wrong, although he'll probably be proven correct, then this correction has taken the market by complete surprise to the downside.

For bullion holders, it would be a coprophagic breakfast, because you're going to have to reduce your expectations to the upside.(this based on a Wave One extension analysis, rather than a Wave Five extension) But for holders of mining stocks in production and a certain cost, it could actually be a boon.

If, as I have supposed that the gold price decline is due to a derivatives backdrop, much like the mining shares, then nobody has it right until the parabolic decline reverses. But your volatility smile would be in the money, with all of the financial interest greatly increased by the panic. The purpose is to shock with volatility.

We saw a parabolic decline after August, 2012 in GBN.V shares, and a concomittant parabolic rise in DUST. And this came after a steady decline over almost two years. 3 years is up in August.

Financial Review

-F6