...from the latest Prechter newsletter via Club EWI.
"It is time to begin thinking differently about the precious metals. For those 21 years, we saw each intermediate term rally in gold and silver as a short
selling opportunity. Now it is time to begin thinking about how and when to buy."
"My two best long-term targets for gold are still below $200/oz., so the intent of this report is not to issue a “buy signal.” It’s to get you mentally on the
side of what has finally become a distinct minority. Figure 2 shows a close-up of wave Y. As I see it, this wave is incomplete and requires wave C
down. The only question is whether wave B of Y is over. If it is over, then gold is already in its final washout. If it is not over, then gold will soon
embark on a $100 rally to about $360 before wave C begins. The dashed lines on Figure 2 show these two scenarios."
"If I don’t think the bear market is over, why bring up the subject? The answer is that market psychology toward gold and silver reflects so much
complacent pessimism, even aggressive pessimism, that anyone who knows markets cannot ignore it. It alone justifies beginning to pay attention to, if
not accumulate, gold and silver. Remember in the late 1990s when stock mania enthusiasts shouted, “Cash is trash”? It would have been a good time to
cash in their “hot stocks.” Today, if there is a consensus anywhere, it is that gold and silver are trash. This means we are getting close to the final
bottom." |
