6:35 am PST. Ding, ding. Overlap of 1243.20 accomplished in /GC.

6:24 am PST. Technically the dollar could run higher as according to my account we are still in the ending stages of wave 3/(3). But there was an awful lot of negative divergence at the last top at 103.82. I think as long as it does not overlap 97.62, the dollar could go higher and much higher at that. If it does overlap 97.62, then I think we could test 96. If 96 fails, it becomes very interesting.

5:43 am PST. I want to post charts of GLD on multiple time frames going from the Monthly to the 30-min. I like to see how really beautifully human behavior repeats in similar patterns on different instruments. The passions of people never change. I have come to realize and believe that trading is about discerning human-behavioral patterns with regard to stocks. Trendlines, moving averages, elliot wave counts, and the multitude of indicators all help to understand how people are feeling about a particular stock. Human behavioral patterns also exist in the universal realm of fibonacci growth sequences and pi cycles. We are stardust after all.

5:01 am PST. Gold futures are almost at the 1243.20 overlap point that confirms gold is in a new major wave 3 bull leg up that will take us beyond $1400. I will calculate my target for this major wave 3. The gold mining sector is going to be the hottest sector this year.

1:03 pm PST. The Dow closed up 37.60 points. I remain bullish. Here is my wave count for XLF. My target over the next month or two on XLF is $26.

The Dollar made gains today, with the UUP closing just under the trendline. UUP closed above the 8 and 4 emas which is turning bullish.

Gold and silver mining stocks gave back some of yesterdays gains, but in face of the dollar rally, I thought they held up well. To me, this looks like a wave iv consolidation retracement. Here is my count for GOLD. I remain bullish.

9:26 am PST. The Vanguard total market bond etf, BND, has seen for two straight days some really massive buying volume in the dark pool. The market makers are piling into bonds.

GOVT has rallied off that massive 7 million share print at 24.93 that we saw at the end of last month.

Marty, glad you are finally writing about silver. 🙂 Did you see my charts over the weekend and the big black bar of support?

Silver the Key to a Sustainable Rally in Gold

When are you going to have lunch with me? We need to talk. 🙂 Just email me. You have my email address.

SLV is bullish above this big black bar of support.

Guys, I might have to start charging for my analysis….or go to a private blog.

5:38 am PST. Yesterday GDX and GDXJ had high volume breakouts from the bullish ascending triangle pattern. GDX also broke out of and closed above the 200 sma. That to me says this morning’s pullback is just consolidation before continuing the melt up – I might add onto positions this morning. SLV also went higher on higher volume yesterday. SLV has not quite broken out yet.

5:23 am PST. The dollar looks like it is having a rip-your-face-off rally this morning that could culminate in new highs. The breakout point for UUP from the down trendline happens at around 26.00 which UUP is just about at this morning.

Interestingly, gold and silver are only down marginally. If GOLD breaks below 84.91 then I will exit, otherwise, this might only be consolidation. I am not sure. Silver does have solid support at the black trendline. It will be interesting if it breaks below it. I do not think it will, but if it does, that will be another pattern to chalk up for my records.

1:06 pm PST. Nice day for the precious metals and mining sector. GDX gained 3.67%, /si +1.52%, and /gc +1.29%. UUP had some smaller prints today, at 25.82 there were 200,000 shares block traded and we closed below. UUP backtested the 8 ema day and sold off. We closed just on the 4 ema.

The Dow and the indices treaded water today consolidating in a tight range. I am still bullish and think we will continue to climb higher into May.

Several days ago I bought Rangold, GOLD, at 84.91 and continue to hold it long. I do not expect to see GOLD back at 84.91 at any time in the near future. /GC is almost at the 1243 overlap point. I expect we will get there tomorrow and then see some consolidation for 1-3 days, but overall still bullish.

Here is my wave count for GOLD.

Like look at this stunning fibonacci spiral galaxy. I love looking at these galaxies. The same laws of the universe apply to these celestial galaxies as it does to a seashell that one finds while walking along the beach here on Earth. I wonder about the beauty of the universe, ponder upon the mysteries of how I was formed and came to be, and what beautiful secrets there still are to be found. I think about the fibonacci growth pattern and wonder whether pi is just the same, a universal constant that exists in the life cycle of alive entities.