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Shared the above chart with Premium Members last week reflecting that both Gold (GLD) and Silver (SLV) were up against key falling resistance lines, which represented another chance for aggressive investors to short the metals, with the best looking short being SLV.
GLD and SLV so far have created lower highs and I am doing nothing fancier than going short at resistance. Not attempting to mix any more than that into the equation.
The “Power of the Pattern” missed the highs in gold by one day and a half a percent back months ago. At the time Gold was hitting key channel and Fib resistance GLD became the largest ETF in America and flows into GLD were the highest ever.
Now flows into the Gold complex are hitting records again, as Gold is creating a flag/pattern/series of lower highs. (see flows chart here)
Hmmm…falling highs and flows are hitting record levels-this could get interesting,
Hey Mr. K,
if dollar is likely to weaken, S&P to break out and up, then gold / silver should seem poised to break resistance and run…makes sense as well w/ the idea that ECB begins some form of monetization for Euro zone debt….curious why given this scenario you seem to anticipate resistance will hold and short PM’s would be the play???
Thanks as always for your insight.