Gold is on the rocks today, as the after effects of our failure up at $1977 become all to apparent - yet again.

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The lesson? Did you try and anticipate the market? If you did, you paid the price. Waiting for that weekly close can be frustrating - but it cuts down the bad trading ratio really well, so it's worth it in the end. In the big picture it looks like our earlier admonition to hack away at length was a good one.

We're in mid-stream, between $1900 and $1977. Those who are willing to trade money for quiet weekends can close out any balances and call it a week. Our identification of the trading pattern for the past months was accurate, and produced results. The scale-down purchase at $1950 and $1900 plan worked out well. Our forecast that we'd rapidly recover towards $2000 almost panned out... but stalled out short and started to reverse. Still a good trade-able position. ... Next? Looking for purchase levels. We remain committed bulls. Inflation is going higher than many think. Interest rates as well, which will evetually take Gold's wings away... but we are not yet at that level; i.e. - the level where you could "suck money off the moon" with 10 year rates at 10% +. Still - we may get there in the course of time.