To begin,
we shall perhaps surprise a few people here this
morning, but having ramped down our overt bullishness
toward gold several weeks ago, and having sold equities
against the remaining gold position that we had, we wish
this morning to begin re-accumulating gold as we watch a
rather sizeable but clearly discernible "pennant" formation
on the "hour charts" of spot gold resolve itself bullishly.
Having made an interim top at or near $935 in very late
January, and having made yet another interim top at or
near $925 in the 2nd week of this month, and having
made yet another interim top two days ago at or near
$915... but each time with a progressively higher low
attendant to each interim top... it appears that that
consolidation is about to run its course and that the major
trend is once again preparing to reassert itself.
We shall buy gold this morning then, returning as
long term gold market bulls, upon receipt of this
commentary. Since we had five units previously, and
now consider what gold we own to be hedged via
equities, we'll begin this morning with two units. We'll be
rather quick to add to this trade too, for
should spot gold trade upward through $915, we'll add two additional
units and shall be as exposed as we wish to be:
