Well gold finally broke through the 5 year resistance downtrend line. But what matters is how we close the day and if there is follow through tomorrow. If this drops back under 1290 and we start tanking, then I would bet this continues to drop hard. This could be a false breakout designed to get everyone to go long. Do you doubt the big money does not know this? I am fairly certain that we are in the final 5th wave still. It has gone higher than I anticipated. Oh well. I am not going long because I believe this will fail. I am bummed that I got out of Jnug. If you remember, I was saying that I thought Jnug was going to test the red zone around $20 and then drop. I got out when I saw Jnug fail below a certain level. Looks like I took the fake out bait on that move . Oh well. I will wait. I am looking for Jnug to be at around $16 by Friday. If gold closes green and keeps running, I will wait for a pull back before going long.
As I write this, there is a large bearish divergence on the RSI 5 and also as gold correlates with miners. The question is, will miners catch up over the next week or is this going to fall short again. I bet short. GL
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Oh and one last thing, We made a large gap up today for Jnug and I am betting we fill it soon. Not to once again mention the gap down at $15. I feel going short Jnug from this level is safe. But it may be better to wait to see if there is follow through.