Gold Trader: “Manufactured” Crash Imminent, Gold to Test June Low Next Week As JPM Guns for $1,000November 14, 2013 By The Doc“At least two big banks, I would say Goldman Sachs, JP Morgan, maybe a big hedge fund… are trying to push gold down to that support zone at around $1000.
I think they’re already short, and right now they’re letting the reversing dollar do the work for them. I think gold tests the June low by the middle of next week.
When gold bottoms, it will bottom in a v-shape—& it’ll come roaring back out… because those three funds that have been trying to drive this down… will flip and go long. I think any smart hedge fund manager is looking for this $1000 level, and they’re just like me—they’re sitting in cash and waiting and licking their lips. If a washout comes, they’re going to put the money to work… so I think the buying pressure… is going to be huge. The bottom will be an event—very short and we will very quickly rally back up to test $1520… and then I think by next summer we’ll already be testing $1800-$1900.”
Submitted by Tekoa Da Silva, Bull Market Thinking:I had the chance yesterday to reconnect with technical gold trader Gary Savage, publisher of the Smart Money Tracker daily gold market commentary and trading service, which has outperformed most of the world’s hedge funds in 2011 and 2012.
It was a powerful conversation as Gary indicated that gold is now signaling the increasing likelihood of another overnight sell-off event, similar to what was seen in late June, in which the price collapsed from $1400 oz. to just under $1200 oz.
In describing what gold is signaling to the market right now, Gary noted that, “Over the last month and a half, gold deviated and started to follow the dollar down[wards], which I was afraid was a warning sign that gold would be in trouble once the dollar started to rally…and that’s exactly what has played out. The dollar rallied over the last three weeks, [and] gold turned back [down]…almost to the exact day that the dollar started this rally.“
Traditionally moving opposite the dollar, this latest development in gold according to Gary, suggests that funds are shorting in advance of another, “Typical pre-market, middle of the night hit, where you see 200 tons of gold dumped on the market with no buyers to support it…At least two big banks, I would say Goldman Sachs, JP Morgan, maybe a big hedge fund…are trying to push gold down to that support zone at around $1000. So I think they’re already short, and right now they’re letting the [reversing] dollar do the work for them.”
Silver Shield AdWhen asked how this bottom might play out on a visual basis, Gary said, “When [gold] bottoms, it will bottom in a v-shape—[and] it’ll come roaring back out…[because] those three funds that have been trying to drive this down…will flip and go long. I think any smart hedge fund manager is looking for this $1000 level, and they’re just like me—they’re sitting in cash and waiting and licking their lips. If [a washout] comes, they’re going to put the money to work…so I think the buying pressure…is going to be huge.”
As a final comment towards this potential and imminent crash, Gary noted that, “The bottom will be an event—very short and we will very quickly rally back up to test [$1520]… and then I think by [next] summer we’ll already be testing $1800-$1900.”
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