August 22, 2011

Greetings! 

 

Traders - although I am borrowing the following quote from a movie and altering it, it's absolutely appropriate today:   

 

"They should have sent a poet."

 

Words can not adequately define or describe the market moves we are witnessing in precious metals.  Gold basis on the Comex (December) contract briefly surpassed the $1900 mark. This is not a typo - $1900 gold! Silver is also returning to its glory days, witnessing a stellar performance by trading $.84 higher on the day at 43.74.

 

On the global front it appears as though we have a tentative stabilization with the global equity markets finding some support, but more importantly not continuing to trade sharply lower. The European and US debt crises still remain unresolved, and with all eyes this weekend trained upon the continued unrest in Libya, the combination is a more than potent mixture stirring up the demand for safe haven investments. 

 

This week we need to stay focused on Friday when a federal reserve symposium in Jackson Hole will take place. It is my belief that the current market rally is based upon the assumption of a QE3 type bond purchase by the Fed.

 

 

 

Wishing you as always good trading,

 

 gary@thegoldforecast.com 

On Skype gary.s.wagner 

 

 
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Proper Action

 

8-21 Long @ 1872 Stop @ 1835

We will scale add to this core on breakouts



 

 

Market Forecast

Gary S. Wagner

 

On a technical basis, gold has traded to new record high after new record high. The basis December Comex contract gold actually traded above $1900 per ounce. In today's report we will look at our various upside price targets which are based upon Fibonacci extensions. From this report you will see that although the market has consistently found resistance at these various pivots, it has been able to overcome them one by one. 

 

As we begin this week the question has to be "where will we see gold trade prior to a correction?"  

 

The answer in my mind might surprise you.  As long as we continue to trade to the various Fibonacci pivot points and effectively break above them I will look at the next pivot to the upside. We are currently just above a 138% extension of wave one which has a price pivot of 1897 basis the cash month. The next target above that will be displayed in today's video.  

 

Although many traders question how much higher this rally could go I wish to leave you with the following thought: in a super bull market it is not out of the realm of possibility for wave five to be up to a 2 61% extension of wave one. Although extremely rare in terms of straight Elliott wave forecasting the 261% level is one that we use as an upper-level target or pivot.

Copyright (c) 2011 Wagner Financial Group 
 
Before deciding to participate in Gold or Silver investments, you should carefully  consider your investment objectives, level of experience and risk appetite. Most importantly with futures activity do not invest money you cannot afford to lose.There is considerable exposure to risk in any futures exchange transaction, including, but not limited to,leverage ,and market volatility that may substantially affect the price of  gold and /or  silver. Moreover, the leveraged nature of Futures trading means that any market movement will have an equally proportional effect on your deposited funds. This may work against you as 

well as for you as well as for you.