Time to Buy, Buy, Buy

By: Toby Connor | Fri, Nov 2, 2012
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If you aren't already in, Monday or Tuesday should represent an exceptional buying opportunity as gold moves into its final intermediate cycle bottom.

Now that the 38% retracement has been breached I would look for a final exhaustion move to test the 50% level early next week as we move into the elections.

Gold

At that point sentiment should be completely washed out and gold will be set up for an explosive move to test the all-time highs by the end of the year or early January.

Miners should deliver even bigger gains as I expect them to break out of the bull flag that's been forming over the last 4 weeks and generate a 25-30% rally to test their all-time highs.

Gold

We are moving into one of those rare buying opportunities that only come around once or twice a year. This is that point I warned about in my last post where one has to ignore the media and nonsense about QE3 not working. It is going to work, and it is going to work extremely well. I fully expect it to drive gold to $4000 by mid-2014.

Our current situation is purely a profit taking event, nothing more. These happen like clock-work about every 20-25 weeks, as you can see in the chart below. Gold is now very late in the timing band for that major cycle bottom.

Gold

I'll have more in the weekend report and I think the odds are very high we get a final bottom by mid-week.

 


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Toby Connor

Author: Toby Connor

Toby Connor
Gold Scents

Gold Scents is a financial blog focused on the analysis of the stock market and the secular gold bull market. Subscriptions to the premium service include a daily and weekend market update emailed to subscribers. If you would like to be added to the email list that receives notice of new posts to Gold Scents, or have questions, email Toby.

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