One reader writes making a statement that clearly we are so influential and that is why only a fool does not read our work. Some people assume simply because I said Friday was a low in gold and we should get a 3 day reaction rally and it does, that this is all influence. This is simply a distraction. What if the markets are far more accurate and there is tremendous hidden order in the markets than people suspect? There is no random walk nonsense. Einstein said it best – “I cannot believe that God plays dice with the universe.”
Let us be honest. The whole idea behind the Tower of Babel was to disrupt the communications of people. When it comes to the nature of all things, there remains a wealth of difference so you will never achieve consensus. If I am right and there is tremendous order to this illusion of chaos, then politicians lose power to say vote for them and they will manipulate society to create the perfect world and economists lost the power of playing God and have to focus on studying HOW things function rather than trying to alter the nature of humanity.
In gold today we have three Weekly Bearish Reversals 1233, 1197, and 1176. Take out all three and we should expect a drop to 1040 area. It would be fantastic to see a collapse to $950 by the first week of August. That would destroy gold in the eyes of most as even an asset class. That would then set the stage for a real bull market.
The Euro peaked precisely with our forecast array on June 18th the week of the 17th. Everything is showing high volatility as we enter the ECM target week in August. The weekly Bearish Reversals on the cash for today at 12914, 12889, and 12841. The main level of support is 12137. Keep in mind that with the German banks in trouble, that will be the final straw for the collapse of the Euro. This will push the dollar higher and gold lower.
For those who are trying to get familiar with these arrays, there is a brief explanation – How to Use the Forecasting Arrays.