Jim Sinclair is looking for a huge bear trap for gold bears.
“For every year from 2002 to 2010 gold has, at least, corrected to its 40-week moving average and been down, peak to trough on average 15.6% (see table).”
David Banister has gold support at $1650 per Elliott Wave .
Gold and silver rocket higher in pre-market as US economy added zero jobs last month and the market anticipates QE2 and Bernake has nowhere else to turn.
Lower bank stocks in Europe (sovereign and funding concerns) and the US (another round of mortgage lawsuits) are what’s leading broader markets lower. Greek short-term yields are rising to new record highs.
Just another day in the casino of the world financial markets.
Stock markets retraced the spike from the release of ISM manufacturing data, which came in slightly stronger than expected. Knee jerkers sold of precious metals and bought equities. The euphoria last all 15 minutes.
Precious metals have since recouped their loss and SLV is green now at 40.58, while GLD is at 177.53, slightly red. HUI and GDXJ, precious miners indices have turned green after the knee jerkers slammed them down in the morning.
RGLD, SLW, RIC, EXK are all in green now, and I expect the reversal to continue to the day’s end.
Equity futures are up strongly pre-market, with Dow futures up 117 to 11606. Gold and silver futures are flat at present.
Looking for gold stocks index HUI to breakout from its one year range. Above 610 for HUI will be very positive for precious metals stocks as they have badly lagged the gold and silver prices.
Remaining long RIC, RGLD, EXK, and SLW, with a stop 8% below.