Gold follows an A(minor up), B(minor down/consolidation), C(Major UP), and D(Major DOWN) cycle. The last major buy signal for gold came July 27th 2012 after the D-wave "hook". This buy signal is marked in the chart below.
We're in the middle of an AB transition, but today's aggressive selling in the gold shares sector suggests that a large number of retail traders and community members have assumed the worst. In other words, the trading black boxes won't be the only ones behind the invisible hand's woodshed. A-wave rallies are not followed by D-wave declines, but I realize that Jim could be the only one left listening.
Statistical concentration always marks the B-wave. If I can't get Bono to promote the buy signal, it's likely that the invisible hand will be standing alone on the long side of the gold trade before the C-wave rally.
Chart: ABCD Wave Cycle in Gold:
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