Robert J. Cote, Jr.
Thirdeyeopentrades
www.thirdeyeopentrades.com
January 20, 2007
Battle Of Eagle Creek
It's all about the The Creek and Cracking the Code. Lines in the sand have been drawn, where bulls continue to meet the bears in battle. A great battle is on the horizon and the bulls have rested and taken up arms again. War cries echo and battle drums pulsate. "Hey ya hey, hey ya ho, gold is going higher you know…PUHA!"
Pessimism runs ever deep in the gold sector. One needs a bag full of dog treats to find a stray hound interested in a snack.
Thirdeyeopentrades asked Eagle where he thought gold was going over the next several years. This is what he said (besides "Woof"):
"Gold is going higher."
Eagle, the Border Collie, is a new addition to the Thirdeyeopentrades family and he likes gold a lot. Almost as much as biscuits. But what does the chart say?
Cracking the Code elicited a head-fake recently and we have reset the chart. As the signal relies on trend line resistance, interpretation errors occur and we think our interpretation of the signal is what went wrong last month, and not necessarily the signal.
About signals. Have you ever seen price break thru a .618 fib level? Have you ever seen price take out support and keep falling? Would you then throw those tools away? We think not. Our toolbox is filled with tools and our interpretations and, perhaps, the tools are not invincible.
So, we think that resetting trend lines for Cracking the Code is appropriate. You may or not agree with that but that's what makes markets, isn't it?
Cracking the Code resistance areas have been noted for price, $XAU:$GOLD ratio and MACD. We're watching to see if a simultaneous crossing of those three areas takes place again. But, even if it does and that battle is won, there's another perhaps even more important one directly ahead of it.
A pink dashed ascending triangle has been noted on the chart. The top horizontal line of that formation is "The Creek". That is a FORMIDABLE area of resistance which needs to be taken out with force. It may take all of 2007 or longer to accomplish that feat and win the "Battle at Eagle Creek", which we've named it.
The upcoming weeks and months will be filled with excitement and pain. Riding the Golden Bull will leave one bruised, bloodied and ready for more.
Ah, the life of a Golden Comet. It doesn't get any better than this. Puha!
Thirdeyeopentrades publishes a weekly newsletter and is offering the most recent edition at no charge for those that would like to sample it by e-mailing us at thirdeyeopentrades@gmail.com.
Thirdeyeopentrades wishes you Health, Wealth, Wisdom and Happiness!
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