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We rallied from contract lows to contract highs in 20 days. If December meal takes out 3.60… that would be bad for bulls who got long based on newspaper stories about meal shortages. Buy the rumor sell the fact.

Gold based between the late 90’s and until 2003 at around $300 bucks an ounce. it spiked to its high of 1950 during the fear trade run up of the 2012 election. That August, 3 months before the 2012 election, the gold bugs had their day in the sun. Today, we are testing 4 year lows at 1169. Simple math gives us 1125 as the half way back point of this historic rally. Below I’m posting two charts. A picture is worth 1,000 words. First is a weekly chart of the Dec 2014 futures contract.

Gold based between the late 90’s and until 2003 at around $300 bucks an ounce. it spiked to its high of 1950 during the fear trade run up of the 2012 election. That August, 3 months before the 2012 election, the gold bugs had their day in the sun. Today, we are testing 4 year lows at 1169. Simple math gives us 1125 as the half way back point of this historic rally. Below I’m posting two charts. A picture is worth 1,000 words. First is a weekly chart of the Dec 2014 futures contract.

16649 has been the high tick so far in the Dow Futures Dec as of 10:09 AM. 16,701 is the fibonacci 62% retracement. History shows these levels are good target for both bulls and bears.

1937 would be the 62% retracement. 1914 was the half-way-back point. The high so far today has been 1928. It looks like every one who sold it in the hole last Wednesday has been squeezed out.

1937 would be the 62% retracement. 1914 was the half-way-back point. The high so far today has been 1928. It looks like every one who sold it in the hole last Wednesday has been squeezed out.