The setup for the big trade

Normally wouldn't put this much weight on an Eric "Leading the Witness" King interview, but this is the clearest view I've heard Santa express to date regarding this correction.

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/2/27_Jim_Sinclair_-_Gold_Will_Now_Be_Released_To_The_Upside.html

Eric King: “This smash that we’ve seen in gold, is it over?”

Sinclair: “On or before the 28th of February is the date that I’ve been living with, and it looks like it’s right. The mining shares, those are the most liquid positions are the shorts. So basically the mining shares today were in shock at the price of gold and didn’t believe it.

What is the best sign here for us is that we didn’t get a Monday smash. Also, the morning takedowns have been less enthusiastic. So you would have to conclude that the morning takedowns are not being done by the major manipulators now. That’s a reversal of a pattern and a reversal of a pattern means a reversal of the (gold) market.

I think any time you’ve taken a hit like this you are going to have to chop your way out and that’s exactly what I think we’ve been doing so far this week. But if the pattern now is reversed, and that will be very obvious next Monday morning, I think gold could shoot right back out of this hole and aggressively to the upside.”

Eric King: “Would that be a V-bottom Jim?”

Sinclair: “This time, yes. With the amount of pressure recently on the downside, and with the reversal of the pattern of what was the hallmark of the interest that created the downside, the answer is yes, a V-bottom is what you would expect.”

That is a pretty green line "C" you drew argentus maximus. The corresponding parallel resistance line has quite a few exact touches and makes for a nice looking channel.

That was quite a few units that expired on the $1600 line this week.

Next week is interesting as this expiration will be witnessed in the COT report Friday.

if they are related to ..you should sell or you should buy.

Just set a stop somewhere between 1560 and zero?

They are physical not paper .. I only buy physical.  I donno what to do .. I guess ill take the risk and wait for tomorrow's  GDP and jobless claims if they were bad then gold will be good hopefully.

This is not advice, but just to note a third option that you overlook. Selling just a part of it (as merited by your own risk assessment and due diligence) kind of hedges your bets a bit.

As an aside, if you are so distressed by the uncertainty of future price action (and this uncertainty will never go away) then you are probably in too deep.

Go back and read #234 for some price retracement levels. So far the action is normal and to be expected.  Nothing goes straight up.

However, you should always decide at what price you will sell if price doesn't go your way BEFORE you buy. There is always the possibility that the trade goes against you.

Hope things work out for you.

Got stopped out on the dip below $1593, so I made pennies.

Going to try bottom fishing tomorrow.

Why wouldn't you just buy a put to hedge it?

poor fool being me.

So here is the plot. Byzantium has been following this thread, but might be a poor student, because apart from being a gripping read, I don't really know if I've got it. Could be that I am the lone fool, but no harm in asking.

My understanding in a paragraph, to sum it all up:

Everything is connected, and Argentus was able to correctly pinpoint in advance, 19th to 21st Feb as being crunch time for PMs, in which they might be pushed off the window-ledge. The shorts would meet the remaining bulls, and one side would win. The outcome would set up the price direction for the following month (though the extent of that move remained beyond scope). The 27th Feb (now past) was the final chance for the shorts to change this direction. We were given key dates and the significance of those dates, and now we are hanging around for more, but this show is in fact over(?). 

Can I conclude that the bulls won by stopping the bears at a key support level, and that we can expect a measure of ascent (extent not specified) for the next month?

I'm in no way criticising the thread, I thoroughly enjoyed it, but I seek to affirm my understanding; I'd hate to think I missed the essence.

Cheers

Byz.