$Gold Weekly

If you are a subscriber to stockcharts.com and use it for your charting facility, you can see the annotations and exactly what I'm referring to.

I have proposed that there is an active derivative cornering the financial interest in the markets called a 'volatility smile.' It differs from the 'Long Strangle' in use to effect share price declines in the resource sector, most notably GBN.V shares. The structure of that 'Long Strangle' allows for a reprise of the derivative so that it can be repeated in series, on a two-year schedule.

The very same thing is being effected, if you accept that theory in the US Dollar bullion price. A second voliatility smile is being presently arranged so that it can be prosecuted at the end of the first volatility smile. Red lines denote developments in price preceding the market decline.

This goes a long way in explaining exactly what is going on in the market. Why, for instance did the price stop only a dollar above the previous low, when the gold price market was at its most vulnerable? Why do the ETFs show only very little inflow of bullion? The gold price in $U.S. is very similar in the lead-up to the first volatility smile, despite the technicals which disagree.

Will the second volatility smile be as successful as the first one was? Remains to be seen.

The entire gold sector is anticipating a huge mania, thus a second low is in the cards before the mania occurs, waiting patiently for another decline. They are wholly focussed on this mania, as if it's going to happen, an absolute certainty.

http://scharts.co/1kClfB6

-F6