Tuesday, February 7, 2012

Stewart Thomson: Gold is Merely Stopping for Gas on Long Bull Trip

Stewart Thomson's latest advises readers to quit panicking- gold's latest correction is merely a pit stop to gas up on its trip across the 'dollar country'

Gold Cars And Gas Stations
  1. While I may have a few minor concerns about the current emotional state of some gold market investors, I have absolutely no concerns about what I see on the gold chart.  It’s a bullish work of art. 
  2. Still, if you want to drive from Los Angeles to New York, I think we can all agree that you should consider stopping for gas, correct?
  3. Well, the gold price needs to stop for financial gas on its trip across “dollar country”, particularly when it has “driven” $240 uphill on the dollar price grid, and is preparing to blast above significant technical resistance. 
  4. Click here now to view the key daily gold chart.  It’s a picture of bullish beauty, and I have highlighted the enormous wedge formation with two black trend lines. 
  5. It is normal, healthy, and desirable for price to pull back to the supply line of a wedge formation after the initial breakout to the upside, and that is happening now. 
  6. After rising about $240 an ounce without a fuel stop, your gold automobile has simply pulled into the financial gas station.  The attendant is filling your car with gas, checking the oil, and even cleaning your golden windshield.
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Did you Stack the Smack in gold and silver into price weakness at the end of January, or did you sit on the sidelines waiting for $1200 gold and $18 silver, only to chase the price at the end of January after 30% gains?  Buy professionally into artificially induced price weakness, then have the intestinal fortitude to be right and sit tight.  The bull market will forgive mistakes of timing entry, as long as you are convinced you are right and sit tight, and refuse to allow price volatility to affect your trading/ stacking decisions. As SD readers have demonstrated time and again, this is extraordinarily difficult.