E Did Gold Top? Or Is This Just An ABC Correction Before A Move Higher

In the last Gold and Silver installment to our premium subscribers I talked about what to be on the lookout for with regards to the bulk of the stocks within this sector tracing out a correction that when all said and done creates a bottom of a cup and then works higher thereafter. 

Today I thought I'd share with you the second installment of the Gold and Silver report and want to touch upon what IF they aren't done yet bottoming yet. 

First off let's do a little bit of advanced technical analysis here. Time to time you hear me talk about Elliott Wave. I don't talk about it all the time but when I see stocks following that script I tend to want to at least mention it as it's an opportunity from an educational standpoint to share some knowledge with you all.

If you are one who wants a quick course in E Wave then this is it as there is a wealth of information within this report from not only a basic charting perspective but also that of an advanced charting perspective.

First off, for some it can be confusing. I get that. Let's keep it simple. Its all about 5's and 3's; just remember that and it'll keep you centered for the purposes of this conversation. 

In bull markets it's all about 5 waves up in a major degree when all said and done.

In bear markets it's all about 5 waves down of a major degree when all said and done.

Let's start with what a 5 waves down multi year bear market looks like. Take a look at the chart below of GLD while in a bear market. 

First off what I want you to observe is some basic technical analysis in the chart above with regards to the adage.

"Old resistance once broken to the upside tends to become new support to the downside"

Notice that when all said and done not only did we trace out a full completed 5 waves down multi year bear market but also look where we stalled out to the downside. See the long blue line? Its old resistance once broken to the upside ended up becoming new support to the downside.

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Kyle Soto 4 years ago Member's comment

"Take a look at the chart below of GLD while in a bear market."

I've been trying to do my due diligence into the SPDR Gold Trust (GLD). Anyone know why there is a clause in the GLD prospectus that states GLD has no right to audit subcustodial gold holdings? Why would the organizations behind GLD forfeit this right and create such a glaring audit loophole? I have not heard a single good reason for the existence of this loophole thus far. It also doesn't help that GLD claims to be fully backed by physical gold bullion but yet it refuses to give retail investors the right to redeem for any of these ‘claimed’ gold bullion. There are a number of other red flags as well from what I'm reading:

"Did anyone try calling the GLD hotline at (866) 320 4053 in search of numerical details on GLD's insurance? The prospectus vaguely states "The Custodian maintains insurance with regard to its business on such terms and conditions as it considers appropriate which does not cover the full amount of gold held in custody." When I asked about how much of the gold was insured, the representative proceeded to act as if he didn't know and said they were just the "marketing agent" for GLD. What kind of marketing agent would not know such basic information about a product they are marketing? It seems like they are deliberately hiding information from investors.

I remember there was a well documented visit by CNBC's Bob Pisani to GLD's gold vault. This visit was organized by GLD's management to prove the existence of GLD's gold but the gold bar held up by Mr. Pisani had the serial number ZJ6752 which did not appear on the most recent bar list at that time. It was later discovered that this "GLD" bar was actually owned by ETF Securities."