What will Larry say Tuesday?

Larry Edelson had a Conference call Thursday. We all waited for his statement. Would he tell us that the gold correction was over? No, he did not say that. What he told us is how he calls the start of a gold Bull and when to get out. He told us that he will give us a further update this coming Tuesday?

I will try to anticipate. Let's first look at some facts. Here is the graph of the gold price and the gold miners' index (GDX).

 

Let's look at the chart for gold first. There was a price jump Thursday which took gold over 1,400 in what was almost a gap. This followed an up-day Wednesday as well. Friday was a down day but only the increase in Thursday was wiped out.

 

Let's look at the changes in GDX. This had a strong up day Wednesday and it actually gapped up Thursday. While GDX was also down Friday, it merely lost part of the increase of Thursday. This was then the reverse of what we saw with the miners on the way down: GDX would respond to gold going lower but hardly respond to gold going up. The explanation is that some people are expecting gold turning around and so they are buying the miners, which respond more.

 

What will Larry say Tuesday? As Larry explained, the situation is very similar to what it was in 2008: enthusiasm in the Stock Market and pessimism in the Gold Market. So, the determinant is his cycle theory calculations. He last reported that the calculations pointed to gold bottoming in mid July between 1000 and 1100. He also wrote that the correction will end before the end of the second quarter, which is at the end of June. Will he tell us to continue sitting tight and wait for his signals to shift? Then why did he say that he will give us detailed instructions? We do not need detailed instructions to sit tight. What we see is the coming end of the correction. And some of the signals are contradictory.