"Gold... couldn't be better..."

The pattern is right; a triangle and a Head & Shoulders base with a 17-month time frame and enough depth to provide stored energy to produce a lasting move.

- The timing is right; a fully developed Megaphone from March 2008 with similar structure to Feb-Sept 1980, Jan-July 1986, Apr-Oct 1987, Jan-Sept 1994, Jun-Dec 2002 and Jan-Oct 2004.
- Seasonality is right; September is one of the strongest months for precious metals.
-- August had a classic 50% to 70% pullback before last week’s breakout.
- The battle at $1,000; compares to the Dow of 1966 to 1982, implying the possibility of a $1,000 rally within a year of a decisive breakout.
- Mining stocks are currently outperforming silver which in turn is outpacing gold. This is exactly what one wants to see in a strong metals move.

http://www.321gold.com/editorials/hoye/hoye091009.pdf