The persistent decline is wearing on investors and one-by-one they have lost hope and are beginning to capitulate. We could see more volatility, but there is a decent chance prices bottom within the next 48-hours. The final decline into the prior 6-month low lasted 10-trading days. We are nine days into the current downturn, and a low could arrive anytime.


-DECEMBER’S 10-DAY WASHOUT- The final leg down into the December 6-Month low lasted 10-trading days and declined $63.00. The current decline has continued for 9-trading days and prices fell $60.00. Perhaps we will see a low struck tonight or tomorrow morning.

My positions in JNUG and USLV are underwater. As a rule of thumb, I try to avoid averaging down. Nevertheless, I believe this is a great opportunity, and I’ll consider adding a fourth tranche to these trades when gold forms a swing low. I’ll alert members if/when this occurs.