I think the fundamentals changed on August 2nd, and the Fed has probably blown their chance to get inflation under control. April 12th is when the easy phase ended. I warned people that one of two things would have to happen. The easy phase was done, and this strong turning phase was done. Either gold had to give us a sharp correction back down, or it had to turn sideways. As it turns out, gold turned sideways.
And during this period, both sides get taken to the woodshed. Both sides lose money because the market just whips on an erratic; there’s no trend. As I said the other day, I’m pretty sure this breakout’s going to hold and we’re now starting the next easy phase.
Now we are set up and prepared to be aggressive during the next easy phase. And by the end of the year, we’ll probably have one of, if not our best year ever, in the SMT.
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