Amazing $GOLD long off huge supports!

Gold is bouncing off a HUGE amount of supports and is exhibiting a near perfect S Wave finisher with Ending Diagonal. You could not hope for a better setup! Join in on this high quality trade.

We are lined up with post election year seasonality to the 3rd week of March when the April gold contracts start to go into first notice and roll over.

Post Election Year Seasonality Since 1981 (after the CPI formula changed in 1980)

Bonds may have bottomed on the 200 Week MA this week with a $USDJPY top on its 200 Week MA as well. It was curious that on Monday we had no new lows in 30Y and 10Y bonds while USDJPY crept higher.

Bond seasonality for the last 16 years (QE years mostly) is in agreement with a bottom here

Comment:

Equal waves on the final pattern to the channel and support bottom.

Trade active:

🎯 1820.00 intermediate target at the top of the final wedge and Ending Diagonal
🛑 1675.00 stop below the weekly low

There are even greater targets compared to the 2011-2012 similar structure off the 200 Day Lowest/Highest Close, shown below.

Comment:

Important milestone here as gold attempts to clear Year CAM S3 near 1719 again. I am watching the post election year seasonality shown above very closely for a big move into the FOMC.

The 30Y bond auction tomorrow will be vary important. Bonds are holding (10Y and 30Y yields staying suppressed) so a big turning point may be upon us.

I mentioned bond seasonality above with TLT and on average there is a big bottom around this time with the Q1 FOMC, so pay attention to that.

Comment:

Powell is finally admitting that we should see inflation this summer, which is in total agreement with PMI running ahead of CPI by 6-8 months. Go back to 2009 in this picture and you will see an 8 month lag in CPI compared to PMI before the snap back.

I expect the same thing to repeat this summer (just like summer 2010).

PMI + CPI: imgur.com/a/mXwuQRQ

Comment:

The obedience of gold to post election year seasonality has been a sight to behold.

Trade closed manually:

I will be out of gold until June when I expect a massive summer rally again.