Tronlink Wallet Airdrop: Gold Trend 05/April/2013

Long Term=Bullish - major yearly resistance 1792-1804 needs to be exceeded on a monthly bass and close above 1840 to resume long term up bull trend.
Medium Term=Bearish - It takes a weekly close above 1694 to turn the trend back to bullish. Resistance 1755-1765(Oct/Nov 2012 Resistance) Support 1450-1530
Intermediate Term=Bearish--it takes a close above 1625-1630 for bullish.
Short Term=Bearish--- Need a close above 1600 for Bullish

Support and Resistance

(NOTE JUNE GOLD NUMBERS– Subtract 1 dollar for spot

Initial Resistance 1556-1566-and 2nd tier 1577-1584

Initial Support 1532-1542 and 2nd tier 1516-1526

NOTE – Once NFP comes out --- RANGES CAN GET WIDEundefinedon either side. On the upside, IF REPORT IS GOLD BULLISH ----the 2nd TIER RESISTANCE zone could come in play. IF gold above 1550 at report --- then initial support is 1st tier. IF GOLD NEAR 1540 --- and report gold bearish --- then 2nd tier support can come in play.

CME NEWS (Chicago Mercantile Exchange – CME GROUP)

Like a number of other physical commodity markets, gold was under initial pressure before managing to side step the pressure and climb back above the prior session's low. Gold did see some lift from weaker than expected Initial Claims figures and perhaps some added lift from news of a historic move by the BOJ to effectively double their monetary base into 2014. Apparently gold was having trouble shifting from a slightly slack global economic view to an inflationary view off the aggressive BOJ easing moving. In short, extra QE from the US would probably have lifted gold sharply but the trade isn't nearly as impressed with easing from Japan.

METAL’S OVERVIEW

We sit and await the NFP REPORT AT 8:30 am. The trade range of 1540-1560 we discussed remains in play. THIS report is so huge relative to everything else that gold hasn't moved in about 3 hours as it just sits at 1550.

That's because everything is so screwed up I think that everyone is just EXHAUSTED. We should shut the markets down for a week so everyone can refresh.

Bull Bear Zone-- JUNE FUTURES –Subtract $1 dollar for spot gold

Thursday Daily Bull/Bear Pivot Zone = 1546-1550 (Ideal 1550)

Weekly Bull/ Bear Pivot Zone = 1600-1604 (ideal 1600)

Gold Hourly Chart

Last night’s line drawing the 1540-1542 Fib 23% retracement of the entire bull market provided the low of the day in Asia and London. Even the lows of this correction 1523-1530 is just an under shoot of the 23% retrace level. Thus this is the 4th test of the 23% level.

I watch this 23% level carefully because near that level is where the market has a good chance of reversing. Thus the 1520-1540 level is a potential place to reverse. Because we’re so close to the major support the market can play games and penetrate 1520 just enough to clear stops out and get everyone really bearish. Thus the support levels here are wide because we’re dealing with long term levels. For the hourly chart, we have 1533-1540 and 1520-1525.

The NFP report in the morning will be the key event of the day. These reports usually cause wide swings one way or another often both sides as the control boyz use it to clear the stops before taking it to where they want. If the report is gold bullish then the upside above 1560 has potential for 1571-1581. If it’s gold bearish then the channel line at 1520 would become a target. The blue line channel is at 1495-1507. I mention it because if we hit below the 1520-1525 area there’s probably a lot of sell stops and everyone will be watching. It’s a major opportunity for the control boyz. Unfortunately they can do what they want. They could run it up on the report only to go after 1520 next week. You’ve seen what they do with options expiration. Below 1520 is a major prize for them so I suspect they are going to try and take it out. THE BULLS will be defending that area so it could be a WILD SWINGING back and forth day if they don’t take it up. At this point when we look around, the financial world is so screwed up right now that anything can happen. And the reason is when USA is 16 trillion in debt and interest rates are zero and 48 million people are on food stamps and the Dow is at all time highs and having a string of one of the longest up to down days ever it means the FEDS have screwed around so much that nothing makes any sense. And that’s when anything can happen.

From a trading perspective --- THE BEST THING IS TO BE OUT OF THE MARKET on Friday and try to hop on early next week. EVERYTHING ELSE will be risky. If on the right side, well and good, but for those of you who have traded on these events, how often have you made money vs. how often have you been skinned? They can take it down 30 and then up 30 or vice versa or they can do nothing. We’ll have to see how it goes and then look for a set up.

What Next?

Friday is all about NFP and it could be a wild one. Short term cycle turn next week favors a bounce for the next two weeks. Expect anything and everything on Friday. The market will most likely be waiting at 1550 on the NFP report and then we’ll see if they clear the range on both sides before choosing one.

Bottom Line

The global situation gets deeper and deeper each and every day. We are so far down the rabbit hole that a NEUCLEAR THREAT TO THE USA is given a glancing thought, war after war in the middle east barely makes the news, college grads working for nothing as interns by day and waiting tables at night for $3 bucks an hour and hopefully a tip, poor people with nothing but a $500 dollar phone, a 500 dollar car and rims that cost 1500 bucks to multibillion dollar companies who pay no taxes, Continents –not nationsundefinedbut continents that are bankrupt. Central banks that bail out banks a few years ago with TRILLIONS OF DOLLARS that won’t bail one out that needs 18 billion so they take it from depositors. A president (USA) who over 10 YEARS GETS CUT 3% of his INCREASE and has to shut down the WHITE HOUSE kid’s tour’s --------------AND DOESN”T GET CALLED ON IT. YET ON THE LAST NIGHT BEFORE THE CUTS WENT THRU INSTEAD OF WORKING UNTIL MIDNIGHTundefinedHE WENT GOLFING WITH TIGER WOODS.

Yesterday, he was seen asking BANKS TO GIVE MORTGAGES TO POOR PEOPLE. This is what CAUSED the crash in 2008. WHY DIDN’T HE JUST GIVE THEM THE ONES THAT DEFAULTED INSTEAD OF PAYING THE MORTGAGES OFF TO THE BANKS ---THEN THROWING THEM OUT and selling it rich lords at 30 cents on the dollar --- and then asking the banks to give them a new mortgage even though they don’t have any money ?

Do you think it’s getting weird out there ?

We are at ludicrous speed or if you’d rather ----------FLOORED IN REVERSE.