news.goldseek.com / By Bob Loukas / 6 February 2017
This is the 3rd piece on gold that highlights how unloved gold remains today. Considering the 2016 rally in gold and the turbulent times we now find ourselves in, to be honest I’m rather surprised there are not significantly more gold traders all over this market. Part 1 and Part 2 cover the initial stages of this rally from the December lows. Below is an excerpt from the Financial Tap Member weekly weekend report.
I am rather surprised to read across the blogosphere how a majority of Gold Traders appear to discount and undermine the current gold market. I can appreciate that the longer term cyclical outlook remains unresolved, but in the short-term at least, I believe the gold sector looks to be in great shape.
My view comes with the hindsight of the Cycle count. From what I can see, we recently completely a clear 1st Daily Cycle Low and have already moved higher to new Investor Cycle (Weekly Cycle) highs. Historically, with the second Daily Cycle just starting out, we are now in the most bullish portion of a 26 week Cycle. That means the performance over the next 3-4 week normally shows the best return for the entire Investor Cycle period.
In looking at the chart below, I see that new highs on Thursday confirm that we have a new Daily Cycle in motion. The DCL was relatively mild and short, but then again being a 1st DCL this is not unusual or particularly surprising. And if we consider the 1st DC rally was orderly and not excessively overbought, then there was no real need to see a punishing Cycle decline to counter that rally. Because the 1st DC that was extremely right translated, my most favored outlook is to expect a significant surge in gold over the coming 10 to 15 trading days.