alt: -1- of a

a of “c”

b
Gold (Dec Futures) - Daily

(W) a

“b”

“d” b

“e” (X)

:”c”

This is the model we’ve been using for some time now. We were looking for a mid-
October conclusion of the “thrust” out of the triangle (X)-Wave. The market ran into
some trouble at that point in time, but the decline has so far only been a docile “flat”
“a” correction. Now the market is bouncing vigorously from a 50% retrace of the last
wave higher. The upside risk is that the “a”-wave has not yet concluded and that
we’ll ‘sub-divide’ higher to $1,129/oz. Gold bulls would need to take out $1,073 to
buttress this case.
 alt: -1- of c
c of “a”
Gold (Dec Futures) - 180 minute 1072
-b- -c- of b?

The move down from 1072 was a “flat” correction, a weak

-abc- corrective move that held a very nice chart support -a-
level at 1027.

-a-
-c- wave targets:
1066 as 138.2% of -a- = -c- a -b-
1073 as 161.8% of -a- = -c-
1027
-c- of a
alt: -2- of c

986
b
From the 942 zone, where the triangle concluded, we can observe a “zig-zag” move to
1072 with what looked like a perfect a=c completed. The move to 1072 probably only
concluded an “a”-wave. This means we should see several more weeks of “b”-wave
activity that should be able to take gold back below $1,000/oz. This count gets tossed
into the trash can on a break of $1,073/oz.

If the market can decisively take out 1073, it would look like the mvoe from 986  1072
942 was only the wave-1 of the larger degree c-wave and that we’re facing tow more waves
higher. The 161.8% of a=c target would take us to $1,129/oz.
Declines of the last week were caused
by speculators leaving the market, but
it was merely a “blip” on this chart.
Speculators remain very long Gold.
December Gold Futures (Line on Close)

Small Specs increased shorts as

market was falling.

Net Length of “Small Speculators”

Source: CFTC