Gold Price Stretching its Legs For the $1,000 Run

Gold turned over around the $990 spot gold price, and has once again entered into a consolidation pattern all to familiar to gold. This is a nice pause to allow the gold price to nicely push through the $1,000 dollar mark.

This pause is very healthy for the gold price. What you don't want to see is a peak top where the gold price shoots up and and comes sharply downward like in May 2006. This tells me we still have a wave 5 run in gold to go, which could take the gold price significantly higher.

Remember to dollar cost average, technicals are a short term game, buy gold and let the bull market save you.

This quote is from Jesse Livermore, in the book Reminiscence of a Stock Operator:

"For instance, I had been bullish from the very start of a bull market, and I had backed my opinion by buying stocks. An advance followed, as I had clearly foreseen. So far, all very well. But what else did I do? Why, I listened to the elder statesmen and curbed my youthful impetuousness. I made up my mind to be wise carefully, conservatively. Everybody knew that the way to do that was to take profits and buy back your stocks on reactions. And that is precisely what I did, or rather what I tried to do; for I often took profits and waited for a reaction that never came. And I saw my stock go kitting up ten points more and I sitting there with my four-point profit safe in my conservative pocket. They say you never go broke taking profits. No, you don�t. But neither do you grow rich taking a four-point profit in a bull market.

I think it was a long step forward in my trading education when I realized at last that when old Mr. Partridge kept on telling other customers, �Well, you know this is a bull market!� he really meant to tell them that the big money was not in the individual fluctuations but in the main movements - that is, not in reading the tape but in sizing up the entire market and its trend.

The market does not beat them. They beat themselves, because though they have brains they cannot sit tight. Old Turkey was dead right in doing and saying what he did. He had not only the courage of his convictions but also the intelligence and patience to sit tight.

Disregarding the big swing and trying to jump in and out was fatal to me. Nobody can catch all the fluctuations. In a bull market the game is to buy and hold until you believe the bull market is near its end."

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Dollar cost average on weakness is an excellent way to participate in the Gold
Bull Market..