posted by Army on Peter's blog

Bill Downey offers an interesting perspective on gold action
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There it is. The Gold Shuttle 21st Century Bull Market acceleration phase. It is just about parabolic. Short term, the final channel lines are there. The Next level, (the medium term level) has major resistance at the 1180-1250 area. If we break above the 1155 area, we could snap up. But, we now have a two major measuring sticks that the gold market has provided. The WEDGE lines. Can this be a failure wedge. YES. Could it be a melt-up wedge. YES. What is the market most likely to do? The opposite of the crowd. But is the crowd long……or short.
THE COMMERCIALS ARE have been lifting their hedges……….and now it’s just…………..WELL, to some extent, THE UNITED STATES vs GOLD. We have recently “The United States vs. John Lennon” on DVD, maybe they should make another full length film and call it “The United States vs Gold.”
What next? As incredible as it seems……THE SHORT TERM ODDS ARE NEAR SHIFTING BACK UP. Here’s the deal, there’s
three million ounces of gold at the November 1200 strike price that expires the 23rd, although someone on bloomberg said it was Monday, so i’m not sure if that was in the far east.
Regardless, the FIRE is getting stoked, and the kettle is turning red.
There’s a tungston fake gold bars issue, or rumor, depending on your conspiratorial views in life.
Little countries you never heard of are buying gold.
IS THE WORLD PREPARING FOR THE COLLAPSE OF THE UNITED STATES CURRENCY??????
Are we now ready to enter survival mode.

Does anybody know if there have been any follow ups on CIT and the 300,000 business who just lost their credit line?
How many bars of Tungsten have now been found ? Is there any other country who ordered their gold home this week, or is it just Germany, Hong Kong, ? Or has France done it yet? I can’t keep up.
Can you imagine if this was a good jewelry season? We are in a classic short squeeze.
COULD GOLD BRING DOWN THE SYSTEM ?????????????
WHAT HAPPENS IF GOLD GAPS UP 50 DOLLARS IN THE NEXT TWO DAYS???????
Then what’s the plan? What will it mean for ………….well………for everything?
Let’s see now if I recall. Oh yea, if you took all the gold on earth there would be enough for one ounce per person. Talk about the seeds for the mother of all bull markets.
Conservatively, if you took all the money that’s around, the estimate is there would be between 3000-6000 dollars per person. What does that make the ultimate price of gold? 3000-6000. And that’s just to get it to par value.
The odds favor a pullback by 99%. GUESS WHAT ? THIS THING IS READY TO MELT UP AGAIN.
The chart says it all. Above these lines and we see 1180-1220 like real soon. Because of the 3 million ounces at the option strike of 1200, all efforts will be make to stop the ascent.
IF THIS THING MOVES ABOVE 1160 THE MELT UP TO 1200 COULD BE BY MONDAY MORNING. If the feds or someone doesn’t step in and sell………its gonna melt up.
THEY BETTER GET BARRICK, WHO just bought all their hedges with issued stock……..and LOL, the stock is making new highs. IMAGINE NOW IF THEY RESOLD IT ALL ????????? AT 1150-1200.
THe potentials are endless. Here’s the numbers for Thursday.
RESISTANCE – 1144-1155 then 1180-1220.
SUPPORT – 1137-1144 then 1120-1125 then 1100-1110.
A spike down to the 1120 area is needed by Monday where the froth can get cleaned out. This market is near dangerous.
MEDIUM TERM AND SHORT TERM TREND ABOUT TO BE DECIDED.
ODDS FAVOR……LOWER ON ALL INDICATORS. ODDS FAVOR HIGHER ON SHORT SQUEEZE. Watch the channel lines.
Bottom line: Can go either way. Short term prudence on huge profits aside, STOPS should be raised
On a medium basis, observe for now, but know that 1155 is where there is resistance. If we model 2007, we move to the 1200 area and take out 1155. There is no doubt that a good 3-5 day spike down would be perfect and good for the market.
We are best to let price decide when the end comes. As long as we are above the aqua line at the 1100-1110 price zone, odds favor higher prices. ABOVE THE FINAL LINES.
I might be wrong, but from a pattern standpoint, I think its even odds. The market might freeze here at weeks end and consolidate in very tight range until Friday morning or mid day. That is also a distinct potential.
bottom line; Look to the channels and moving averages to provide support and resistance once the next short term begins. We are still saying the odds favor the trend as up until price weakens no matter what the indicators say.
WE SUSPECT A MELT UP FROM HERE TO 1180 – 1200 is likely to happen, we just don’t know if its this week or gold rests first. Wait for price weakness before proclaiming a top.