This guy sees it different. check out the charts on 321gold.com

Gold pattern finally reveals itself

Eddy Gofsky
May 11, 2009

As someone who has been bullish on gold since 2003 and documented its rise from the ashes of the $300 lows and has followed the work of other like minded gold bulls such as Jim Dines, Doug Casey, Adam Hamilton, Jim Puplava, Bob McHugh, Jim Sinclair, Jim Willie, Matthew Frailey and many others it is very exciting to see how the current pattern in gold is unfolding, and here is the exciting part! It looks like the pattern has fully reveled itself and it is breathtaking!

Like Robert Graysmith whose passion and obsession almost lead him to the identity of the zodiac killer, I look through hundreds of charts and all the technical analysis textbooks and spend most of my free time going to the library looking at economic texts books and all of the investment audio books. The purpose of all this research is not to identify a serial killer like the one Robert Graysmith was trying to catch, but to profit by finding out how the pattern and the riddle in gold is going to unfold and allow the gold bugs to make massive riches!

Just recently an excellent essay by Jordan Roy-Byrne titled "Gold Today and Nasdaq 1995" sparked me to go though all of my textbooks and charts to find similar patterns between gold and the NASDAQ in 1995 and gold stocks and the Tech stocks in 1995 and let me tell you the similarities are truly amazing and leaves the average gold bug speechless!

The book that really unveiled the pattern that gold and gold stocks (GDX/HUI) are going though and are ready to breakout from in a big way was "How to make money in stocks" by William J. O'Neil. On pages 155-161 the author shows dozens of stock charts, most of them tech stocks like Macromedia in 1994, Cisco systems in 1995, Dell computer 1996, Nokia in 1998, Adobe systems 1999, and many others that were on the cusp of breaking out of Mr. O'Neil's favorite pattern 'the cup with handle pattern'. All of these stocks that I just mentioned when they broke out of the cup with handle pattern moved up 100s to 1000s of percent in the next 12 -24 months. All the data is in his book on those pages for all other analysts to look over! [Editor's note: A new edition of "How to make money in stocks" is coming out in June]

Now I'm not saying that gold will move up the same magnitude or gold stocks will go up 1000% in the next 12 months but what I am saying is that the patterns are uncanny and it looks like gold is going to make its big move right here and take the gold stocks with it on a massive up move!

And the best part is that there are many other technical indicators that also confirm the future path of gold and gold stocks and I will show below all the patterns unfolding in gold and gold stocks that make a massive up leg a very high probability event.

Here is the GDX Gold stocks index.

The HUI index long term.

These 3 charts show that massive gains in gold and gold stocks are highly probable for the rest of the year into 2010.

Please go back and look at all my essays since 2003 to see how this gold bull has unfolded and how stunning Elliott wave analysis really is in predicting future moves in investment assets. Also if you would like to know more about my views about the economic situation and some of my investment strategies please listen to my interview on financial tube.com - the link is posted on my website.

The last thing I will say is that when gold does go to $1000 please lock in the price by buying the double short gold fund. By doing this you lock in the price at $1000 and you let gold prove to you that it can get to $1200 and higher and send the senior gold stocks to hundreds of dollars a share! And if gold fails at $1000 your double short will make you lots of money if this pattern does not work out. I did this the last time gold hit $1000 in Feb and it worked out very well.

May 9, 2009
Eddy Gofsky
email: eddy_gofsky@yahoo.com
website: www.edwardgofsky.com/

Edward Gofsky lives in Vancouver B.C, Canada where he studies Elliott Wave Theory and Classical Technical Analysis.

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