180 Degree Shift in 24 Hours

Sudden changes in bullish sentiments along with some technical points may seem like threatening claws from a bear, but holiday preparation may spread some cheer in the form of stability by Christmas.

This week we saw the biggest decline in gold since as far back as September. It was just a few days ago when investors showed some cojones by pushing gold to some bullish levels that broke over-a-month records and then last evening, views shifted 180.

Although about half of the industry pros surveyed by Bloomberg agreed that gold could rebound next week, some technical basics may disagree. Notably, there was a 20% decline from a top and also the 200-day moving average being breached to the downside. Maybe the pros were right and we will see a rise or maybe the two technical indications will supersede instead, but one thing I'm not too terribly afraid of is the holidays. You see for several years in a row now, the actual floor traders and brokers would stabilize prices or even contribute strongly to bullish reversals just before Christmas and/or New Years in hopes of collecting those big commissions for presents and vacations. I'm not going to put all my eggs in one basket, but the two 'indicators' I like nonetheless are the following:

1. Just knowing that there have historically been minor to major recoveries just before the holidays; and

2. Just knowing that the cheaper gold becomes, the more of a buying opportunity there is for smart shoppers like me. :)

Be safe, be wealthy and above all else, be happy.

- Mitch