There’s really not much to write about. Last week I said: “It’s my belief that another surge in gold prices is about to take place. Seasonally speaking, mid September fits the historical time frame for the next up leg to begin. Technically speaking if Tuesday’s high of 1009.7 is taken out whatever the current reaction low is should be the low for the rest of September. This of course is technically speaking as I don’t have a crystal ball.” I don’t see anything that’s changed.

Technical Analysis

The Stochastic reading is embedded. This occurs when both the red and yellow lines on the bottom graph on the Gold Chart stay over 80. Until the red line closes under 80 I would expect price breaks to be shallow or of short duration.

Seasonally speaking there could be one more surprise thrust to the upside in September. After that a correction of size could develop. One that has historically lasted until the end of October.

So anything you do from this point forward has to take in consideration that seasonally speaking, the odds favor a price correction taking place after this rally ends.

Trade Recommendations

Those that follow my trade recommendations know that I did my best to get you ready for this move most of the summer.

Just recently I said to buy December Gold at 949, 991 and again at 1005. I also recommended taking partial profits along the way, taking profit last at 1010 on part of your remaining long position. Basically what I have been doing is having you “roll up” your entry points. The goal has been to have you take profits when the market stalls out, which it of course will do.

Right now those that follow my recommendations should be outright long at 1005 in December Gold. This is in addition to the December Gold 1000-1025 Call Spread, which I have been mentioning here for weeks on end and has doubled in value.

What to do now?

Well if I publish that here that defeats the purpose of getting and reading Twice Daily Update.