Posted Thursday of last week, #162 5 pm or so,
" Quote Originally Posted by Metal Head View Post
You mentioned a while back that sentiment in gold needs to get even more bearish before bottoming... aren't we there yet from this price action? Miners near 210 HUI, gold dipping below 1200... relentless selling and oversold indicators everywhere. All media basically against PMs, calling this bull is over. What else are you looking for and need to see it being rejected enough?
The round number 1200 is a reasonable bounce point."
SD Reply: In fact, what we have just witnessed is breakaway gap, exhaustion gap, rejection of exhaustion via this extension, today, and a giant opportunity to see today's gap fully filled. The odds of this exhaustion gap getting filled are around 90%, which are very high. However, my guess is it will be a very ugly picture. What I expected the other day is what highly probably will happen, but I can't tell you exactly what day.. but within 2 weeks very, very high probability. So, the 50 points up is very real and very low risk. But the ride up there will be bumpy and shocking in the beginning. "
Comment today, Monday: We are less than 10 points away from the end of the free money. A tight stop on 1/2 as the profits are in. The balance will ride to 1250, maybe as early as the opening. 30 and 40 solid points with very low risk is an excellent trade. It's Miyagi style, but with very low risk.
After 1250, it's god's money til there's another set up of low risk. The market can ride maybe to 1300 but the pullback will probably be steep and thus without a close and lagging stop, one will lose much if not all the money now on paper.