Elliott Wave 5.0 "Reboot"

Monday, February 22, 2016

Gold Intraday Elliott Wave Count Review: Return Of The Gold Bear?



Gold had a great run and since about the 11th gold has retreated. On the exact same date the DJIA and the SP500 made lows which smells of a return to stock mania at this time. You can't get any better inverse synchronization than what occurred on the 11th.

I will remain bearish even though stocks may head down and provide support for gold  as investors may run back into gold. Either way the $1190 gold price will not hold as it is just a matter of time before this inverted zigzag gets retraced. 

Many may be very bullish on gold as the world thinks we are in a recession already. If we were in a true recession already then stocks would not stay as high as they are.  It is irrelevant what fundamental reasoning, we may use to justify gold still going to the moon, as many of the Austrian economic experts say will happen.  Sure, I love Austrian economics, but they are a very biased group of experts that will never tell you when gold is going to crash. 

Any rally that has been a big bear market rally and no matter how high it has travelled, will crash and eventually completely retrace its entire move.  Are you ready to bet that gold has "not" been in a  3 wave bullish run? 

Overall, this rally has gone too far and far too fast creating an extreme spike that has hit a trend line starting back in late 2013.  

The HUI has not followed gold at this time, but there are enough open gaps in the HUI to be very suspicious as well. 

Now if we would have had the same spike that we had travel up, but it spiked down dramatically then I would be very bullish on gold.