Friday's crushing of gold and silver answered the proverbial question of "when will this bull run cool off ? ". Well it's here in my opinion but is a much needed pause to allow things to settle down while the dollar shorts cover their winnings then wait to reload for the next step down.
As we speak the markets are open overseas and gold is down $9 which tells me tomorrow is day 2 of a possible 3-4 day nasty correction. Considering the record levels of shorts I will bet that somewhere in the range of mid to upper $1050 range could be the true bottom. It's always quicker on the down side than the up and what we have witnessed the past couple of weeks is not usual behavior and the long specs are going to get killed as they always do buying at the top.
So in other words "everyone out of the pool". I am bullish long term for gold and silver but the higher we go, the more volataile the swings will be so we best get used to it and watch those stocks that are able to withstand the selling.
I would much rather be a bear in the woods than a "tiger" these days anyhow. ;)
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