| Tuesday, June 11th, 2013 | | | | | |
 | | | | Coming Soon: Gold's Next Breakdown | | | - (Another) gold crash is looming on the horizon…
- One step closer to Gold $1,000
- Plus: The start of the "summer chop"
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| | | Greg Guenthner coming to you from Baltimore, MD...
 | | Greg Guenthner | Gold's next powerful correction is coming.
It will be quick and painful—much like the two-day massacre we witnessed just a couple of months ago.
Before I get into the details, here's where the situation stands right now:
Gold futures hit a session-low $1,365 earlier this morning after cratering $20 overnight. Granted, we've witnessed some big moves in gold since April (this wasn't one of them). But the price action that's dropped spot gold $50 since Thursday afternoon is telling…
The situation that has developed since the April crash is strikingly similar to the 18-month topping pattern gold started to show us in late 2011. The only major difference is that in this case, we're dealing with a timeframe of just a couple of months, as opposed to over a year. Of course, this also means the potential downside correction will happen sooner rather than later.
This time around, $1,350 is the magic number.
Since gold's meltdown less than eight weeks ago, the metal has made a couple of big oversold bounces. Each of these attempts to regain momentum has two important characteristics. Both times gold tried to move higher, it turned back at its short-term moving average. And each time it fell, $1,350 marked the spot where buyers finally stepped in.
Once $1,350 falls, all bets are off. I suspect a swift move lower once this price is violated. It will happen fast—but I doubt the downside move will be as severe as what we experienced in April. Just to throw a guess out there, I think a short-term target between $1,200-$1,250 looks reasonable. That's one step closer to my ultimate long-term target between $1,100- $1,000…
You can argue with me on this one until you pass out. But that won't change anything. Save your breath and prepare instead. Avoid gold stocks—or at least lighten up your load if you're trying to play hero and hold through the downdraft. | | |  | | | | Rude Numbers | Targets, Predictions and Wild Guesses
| | | | 113 | points went missing from the Dow Jones Industrial Average early this morning. The Big Index is set to open near 15,100 | | $571 | was Apple's stock price when the company's Worldwide Developers Conference kicked off last year. Yesterday marked the beginning of this year's WWDC—with Apple stock trading for less than $440… | | $642 billion | is how much the CBO projects U.S debt to shrink to this year. The reduction prompted Standard & Poor's to upgrade Treasury credit ratings. Long-term bonds are now only one notch below the top AAA rating. | | 198 | points dropped off the Nikkei in this morning's session. | | $3.18 | is the price of copper this morning. Today marks the fourth day in a row of lower copper prices… | | | | | | | | Rude Trends | When to Buy... When to Sell
| | | Yesterday was a complete snooze. The major indexes were flat on the day after recovering from the recent pullback.
Today, however, the market is not in a forgiving mood. Everything is down: stocks, gold, commodities, bonds… you name it.
There's plenty of trouble in the world to take the blame for the pullback. From ongoing protests in Turkey to speculation over the Fed's "Big Taper" to Japan's central bank, you could throw darts and disperse the blame simply by random chance.
Make guesses all you want. I'm not in the mood. Instead, I'm going to stick with what works. So let's attack the situation with some price analysis…
I'm guessing that today will officially mark the beginning of the summer chop. The major indexes are losing momentum—and I suspect sideways action (perhaps even with some volatility) will define the markets for the time being.
So what now?
Stay smart, mind your stops and don't chase rallies.
I'll be working up some specific plays this week to help get you through the summer. All you have to do is sign up for the Rude Awakening Pro for all of my investment ideas and commentary. It's free to try—no excuses. Join me today…
[Ed. Note: Send your feedback here: rude@agorafinancial.com - and follow me on Twitter: @GregGuenthner] | | | | | | | Ignore At Your Own Peril | Today's Must Read Links
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