Gold on the cash basis has touched $1200 this morning, achieving the price level I said it could do.
It has also ended on a vertical move which cannot be ignored, as these moves are
the highest speeds, we can physically have. They cannot be maintained without a correction or a down right reversal of the trend.
also hit a several year top trend line, so this can offer serious resistance. We also have the makings of a huge big fat Head, so that just adds to my short term bearish mood.
Since the start of Dec 2015 gold has started off slow and then the afterburners kicked in and gold blasted like it wants to go to the moon. All the early waves in this impulse looking wave structure, overlapped, which must not happen in a true impulse so I can see this as a part of an old bearish rally and at best, we may be coming to another "A" wave type top.
The last wave of any diagonal wave structure can and does act just like this, which can fool the very best. Those that are just jumping on the gold bandwagon are going to pay dearly as the gold bears can come out and slash this gold bull to shreds.
The HUI has also gone vertical, but it contains many open gaps below which can all get filled before this market makes a new run north.