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Gold & the Correction
Gold broke the 1963 level and the July closing was 1962.80 which if August closes below, we should then see the retest of support in the weeks that follow. We have closing resistance at 1930 and the main support lies at the 1800 level. We must keep in mind that Socrates is far better than humans. It is not biased and it is agnostic toward markets. This is important right now because everything is so disconnected from reality as capital tried to figure out where to move.
Our models are showing that many markets are beginning to show Panic Cycles in December. Our political models show uncertainty between November and January where in many markets it will be the opposite trend going into the elections. Our sources are warning that the Democrats are so intent upon a SCORCHED EARTH approach and they will NEVER accept a loss to Trump. This is shaping up to be an all or none approach. There are even rumblings that California will split from the United States and we will see political turmoil in Oregon and Washington State.
This is what I mean that neither side will accept a loss. We should expect a rise in civil unrest post the elections which may escalate into January 2021. The best thing to do is to follow Socrates. I personally cannot address every market. That is just impossible.
SOCRATES REPORTS ON GOLD:
Thursday, August 6, 2020
The NY Gold Nearest Futures has been in an uptrend for the past 5 days closing above the previous session's high. The broader rally has unfolded over the past 15 days. Currently, the market is trading above the previous reaction high of 197490 suggesting that it is still in breakout mode as it has been making higher highs. This is a strong move up by some 2.70% from the previous session low. Our projected target closing resistance for the next session stands at 209800, we need to close above that target to imply a further advance. Failure to even exceed this intraday warns that the upward momentum is starting to decline. Nevertheless, this session closed below our projection closing resistance warning that the market which stood at 208937 is approaching a high. A break of this session's low of 126480 will warn that we have a potential temporary high in place.
This market has exceeded the last high forged at 197490 and closed above it pointing to a further advance is likely during the next session. This will be confirmed by opening above today's high. However, if the market then closes back below the opening print, then we may have a temporary high in place. The projected resistance for a high in the next session will stand at 210550 and remaining below that level keeps the market in a normal projection range rather than a true breakout. At the moment, we see overhead projected resistance forming at 214100.
Bear in mind that we have made a new high this week changing the Weekly Bearish Reversals once this week is concluded. Indeed, we exceed the last two highs which were 197490 and 182980. However, we have also made a new monthly high exceeding the previous month's high reaching 207000 which also means the immediate Monthly Bearish Reversals will change once this month is concluded.
At present, the market remains unchanged within support still above our system indicators while the long-term trend and cyclical strength are bullish.
This market is also trading above the bank of eight moving average indicators also suggesting it is still above underlying support at this moment. However, an opening BELOW 205360 in the next session would warn that the high of this session may stand at least temporarily.
We did close below the previous session's Intraday Projected Breakout Resistance indicator which was 204496 settling at 203710 gesturing that the market is not in a breakout mode at that precise moment. The current Projected Breakout Resistance for this session was 208060 which we still closed below. The Projected Breakout Resistance indicator for the next session will be 209098. Now this immediate indicator in the current trading session is above the current close offering projected resistance. Therefore, we either must open above it and hold or close above it to imply the rally is still in play. Otherwise, failure to exceed 209098 during the next session warns the upward momentum may be lost and a retest of support becomes possible.
Intraday Projected Breakout Resistance
Today...... 208060
Previous... 204496
Tomorrow... 209098
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Friday, August 7, 2020
The market opened higher and closed lower making it an outside reversal to the downside warning that a further decline is possible. Our projected support for tomorrow's closing lies at 201167. Therefore, the closing below the previous low creates an outside reversal to the downside which was a very dramatic swing of 3.03%. Volatility notwithstanding, the market finished on the weak side. We have elected 1 Bearish Reversal from the cyclical high established on 08/07.
Up to now, the market remains neutral on the momentum indicator yet bullish on the short-term trend indicator while the long-term trend and cyclical strength are bullish. This market is also trading above the bank of eight moving average indicators also suggesting it is still above underlying support at this moment.
The Secondary Intraday Crash Mode technical support lies at 197383 which we are trading above at this time. A breach of this level with a closing below will signal a sharp decline is possible.
Intraday Projected Crash Mode Points
Today...... 204758
Previous... 202362
Tomorrow... 202072
We did close below the previous session's Intraday Projected Breakout Resistance indicator which was 208060 settling at 205840 gesturing that the market is not in a breakout mode at that precise moment. The current Projected Breakout Resistance for this session was 209098 which we still closed below. The Projected Breakout Resistance indicator for the next session will be 209681. Now this immediate indicator in the current trading session is above the current close offering projected resistance. Therefore, we either must open above it and hold or close above it to imply the rally is still in play. Otherwise, failure to exceed 209681 during the next session warns the upward momentum may be lost and a retest of support becomes possible.
Intraday Projected Breakout Resistance
Today...... 209098
Previous... 208060
Tomorrow... 209681
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Monday, August 10, 2020
The current session was an inside trading range that closed higher following a high and a crash forming an outside reversal to the downside. This market is very weak warning that closing below 201500 would tend to warn of a further decline ahead is likely.
We did close below the previous session's Intraday Crash Mode technical support indicator at 204758 settling at 201800 which alerted us to a further decline was likely going into the immediate session. The current crash mode support for this current session was 202072 which we have now closed back above suggesting the crash is subsiding. The Intraday Crash indicator for the next session will be 195980. Now since we closed back above this indicator in the current trading session, then holding above this indicator for the next session will imply the decline is subsiding.
Intraday Projected Crash Mode Points
Today...... 202072
Previous... 204758
Tomorrow... 195980
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Tuesday, August 11, 2020
The NY Gold Nearest Futures made a new low penetrating the previous session's low and then closed below that level plunging significantly again by 7.20%. A break of today's low of 190320 during the next trading session will warn of a potential serious decline ahead. This market has declined for 2 trading days which has been a sharp decline of 8.41%. In the process, we have elected one Daily Bearish Reversal which previously stood at 196340. Don't forget that a Daily Bearish only indicates a lower low in the next trading session. The Forecast Array suggests possible days for lows. We did close below the previous session's Intraday Crash Mode technical support indicator at 204758 settling at 203030 which alerted us to a further decline was likely going into the immediate session. The current crash mode support for this current session was 195980 which we still closed below implying continued crash remains possible. The Intraday Crash indicator for the next session will be 181580. Normally, when you open back above this pivot number or closed back above it then the sell-off is subsiding. So, watch this number which is dynamic for it changes with each session.
Intraday Projected Crash Mode Points
Today...... 195980
Previous... 204758
Tomorrow... 181580
The Uptrend Line from the last low created at 193000 tied to the secondary low made on 08/07 remains as resistance standing at 204333. Only getting above this level on a sustained closing basis will signal a rally to the upside.
Up to now, the market remains bearish on the short-term levels of our indicators while the long-term trend and cyclical strength are bullish.
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