Elliott Wave 5.0 "Reboot"

Thursday, February 25, 2016

Gold Intraday Rally Review




I tried to give gold some time to play out this crazy pattern. There are too many inverted waves in this  to make a pure impulse so this could be part of a false rally as no new bull market highs have been broken in gold itself. Gold Stocks have been a different story as they have pushed higher.

If gold creates a fast move, down, then this can turn into an "ABC" correction real fast. The other very positive sign could be that a triangle has already taken place and gold still needs to break out in a big move north. It would have to be a running triangle that finished on about February 21.

Right now with the two April contracts the gold/oil ratio is a bit above 37:1  which is still very bullish for oil. I never use oil as money, but it has always been called "Black Gold"! What a pile of crap! Gold has been used as money for thousands of years as oil has only been in use since the mid 1850s or 1959 from the charts that EWI has provided.

I don't like it anymore than many of my readers may as gold can still have many alternate paths at this time. So we have to keep our powder dry and be prepared to bail out if one direction does not work.