Head and Shoulders Bottom in GOLD

P

Point Man

Gold has a H&S Bottom with two left and two right shoulders. The 2nd neckline was broken on Friday at the $345.00 level. The objective is $370.00. The last time Gold started a big up move was December 2, 2002. The S&P's topped out that day above 950. This gold move started a month ago at the $320 level. The S&P's quite obviously have not come off this time around. Is the Gold throwing us a head fake or is it just a matter of time before stocks fall out of bed?
 
http://www.usagold.com/DailyQuotes.html

"The current environment seems to suggest that we will be able to avoid a deflationary cycle and this is positive for the price of gold," said Garrett. "I would not buy gold as a means of investing due to temporary calamities," says Leonard Kaplan, president of Prospector Asset Management in Evanston, Ill. "Those tend to be a temporary rally, which soon quits. When we invaded Iraq in the early '90s, the gold market dropped almost $30 the minute the first bomb fell. "But right now, if all goes well in the world -- Iraq and North Korea go away, there are no sensationalistic terrorist events -- we'll still see gold's price rise in 2003," he adds. “I don't believe the gold stocks will really "take off" until the public and the funds get excited about gold. So in this early stage of the gold bull market, I believe it's the Big Money, the important money, the money that thinks in terms of safety and years ahead that buys the actual gold metal,” said Richard Russell, editor of Dow Theory Letters.
 
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