Remember when gold was, like, $1800-plus, and it was almost a 100% sure thing that if you buy gold at $1800, you are guaranteed it will hit $2000 within days? Well, that was back in 2011, so let’s just take September, October, November, December, January and February and look at gold’s decline on the chart in the video.
On the chart, I drew a parallel channel to where support is at around $1570, where back in May, June and July the chart shows several little tails. Again, we have a new little tail that reached the bottom of the channel so, yes, that is some minor support for gold.
Do I expect it to hold? No. Do I expect it to get at least some sort of dead-cat bounce? Well, sure, because it did bounce in May, June and July all along the levels I point out in the video. It’s when that breaks that you know we have a complete deleveraging/margin call type of thing going on.
We always see things happen first in commodities, currencies and the bond market. Why we have this delayed reaction over to equities, I don’t know. It’s just always been that way.
Bottom line, look for the broader market to start following the commodities and literally drop like a “rock.”
InvestorPlace advisor John Lansing tracks the charts all day and offers expert technical analysis in his day trading, options and trading services: Power Trading at the Open, Parabolic Options and Trending123. For more information on which service is for you click here.