I’m Selling Gold After a 3× Run — The Icarus Chart Just Flashed a Warning
Having sung Gold to the skies I am now a seller. The lovely hocky stick chart I called here way back when it originally broke out, has run its course and the sky in no longer the limit for me.
This chart looks classic and the next moves typically are the fall of Icarus back to earth. In any event, my position went 3 x and I hate to risk the wrath of greed, which causes so much calamity to many traders, so Im out of the exit.
The only smidgen of doubt is, if there is in fact an even bigger hocky stick ready to kick in. Here is that chart.
However this would take a disruption of huge proportions to make Gold head for $10,000 and while lots of pundits go on about the death of the dollar and for that matter civilisation, I don’t think that will happen. I was open to $10,000 an ounce, but now I think there are better places to go hunting for a big upside.
Instead I feel the ‘Gold is for War’ idea might be going into reverse. Russia v Ukraine is on the back 9, at least we hope, but more importantly China v Taiwan may have been forestalled. This of course is guessing but China’s President Xi’s move against top generals feels like the sort of action that might push back an awful assault on Taiwan by a year or two or thereby, even for good. Again we can hope.
As far as precious metals are concerned however, global tension down equals gold down. WW3 averted is not bullish for Gold and I’m happy if that’s what we are seeing.
Meanwhile the Hyperscalers appear to be draining liquidity from the US financial system, into their massive project and thereby also sucking money out of other spicy asset situations.
This in itself could make for wild times ahead. My guess is that we will see stealth QE shortly but nonetheless it’s a good time to lower risk so, ‘goodbye gold you’ve been swell.’