Here is the update of my recent charts for gold and rates:






Interestingly they share pretty similar characteristics:
- both issues were recently rising strongly which may seem contradictory, but as Jim pointed out might suggest inflation expectations
- both reached 1.27 external retracement of their respective smaller Kane patterns
- in both cases 1.27 retracement of their bigger Kane patters is still much higher what suggests that gold and rates should continue to rise together for some time to come

I love this volatility and movement. Wow. Watch 88.25 here next.

88.25 stopped it dead. But notice this little ABCD forming in here. We'll see.

Retest of 88.25 causes a big snap, again. Now a flat ABCD on the area. Maybe just a base and up it goes? Very interesting action, for those that like to pick apart the 1/3-min chart.

Is this possible that this 1.902 DB abcd might have been a 100% retracement Wave 2 of the move off the .382 ABCD ?!?

That is a possibility, jarek. What I find curious here is how my 88.25 did hold and send it up hard, right back to the line, where they came in hard as sellers. But this all may be part of a bigger bullish ABCD forming in here (flat now, or DT down lower). Sometimes it's hard to make sense out of all the action, and it's best to just decide on a premise and let it play out. It's one thing to try to map it all out, and quite another to estimate the odds and make some plays at areas. I try to do plenty of the former, but I also know its limitations, and try to focus on the latter.

And right up off the flat in the after cash. Setting this up nicely for the Sunday night GLOBEX/Monday up routine. It would be pretty cool if it was all made back by Monday, as I sarcastically hinted at.

Wow, a little up and the sellers hammer it into the last seconds. This is such a character change from what we have seen lately. They'll probably have an 'attitudinal adjustment' over the weekend, and be ready to buy voraciously by Sunday night, but right now it sure is different than it has been.

I'm not sure if my time is being well spent with all my endless comments. I'm trying to give hints as to where I am watching, so that everyone can do the work and see if those areas are what they are finding, too. Then I try to throw in a little price action reading, so that aspect can be studied. I don't want to do anything that looks like a 'call'. The purpose is to help focus the attention on finding the key areas and working on assessing them.

That's why I always avoid things like 'I'm long here, short here, looking to get long here, taking two off here, looking to...' That may motivate people to try to copy that, which I want no part of, and isn't a way to learn anything or isn't any part of what we do in here. I can't do any more than I am doing now to get my points across, motivate people, and guide the learning process. I'm just not sure how well it's working...

for a trader like me who wants to trade one trade, capture a large swing and then get the hell out of my chair into my garden,the .886 on gap that holds on five minute continues to serve me well.....a man would almost think that today's action was plugged into the computers last nite....