By: Jeff Cooper
Hit and Run Trading Bonus Report - October 20, 2023
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Blue Sky For Gold
Earlier this month we wrote an article, Is A Gargantuan Gold Run At Hand.
The fuse was lit quickly.
GLD triggered an avalanche of sell stops but then reversed knifing back up through the “break-point”
A massive gap validated the Trap Door buy setup.
It was immediately followed by a combo breakout over declining tops line from the important May 2023 swing high.
It’s blue sky for gold.
From this month’s 168 low, 90 degrees up is 182.
180 degrees up is 196
GLD closed over 182 on Thursday and looks set for a Friday weekly close over this important “square-out”.
Follow thru implies a new high to 196 eclipsing the May 2023 high of 191.
Importantly, GLD’s all-time high from August 2022 is 194.44.
So the projection from the Square of 9 Wheel indicates blue sky points to all time new highs.
Significantly, a breakout to new all time highs triggers a monthly breakout over a three year breakout over a big picture Cup and Handle.
What does “new highs” mean?
From the November 2022 low of 150.50 a 360 degree move is 203.50.
Given the nature of the pattern and cycles, the indication is that gold will leap through 203 to satisfy a 540 degree advance.
This would be an initial drive to 233.
Underpinning the power of this gold run is that it is occurring as the 10-year U.S. Treasury spikes to 5%.
Consider what this means.
Monday Hit and Run will walk through what’s behind gold’s run and current war cycles.
Suffice to say that the U.S. dollar is backed (for the moment) by military might, since the Nixon Shock in August 1971 when Nixon took the dollar off the gold standard.
August has been pivotal for gold ever since…just as it was in 2011 and 2020 and it will be in 2024.