Anti-trust attack on OPEC may scare foreign investment out of U.S.


Gold bulls save face; gold bears may have 10 days left

By Jim Sinclair
Friday, April 2, 2004

Today's close in gold was darn near that $423 number
that I told you was the bullish line of defense. Let's
face it: $422.70 is so close that to call it a miss is
a little on the harsh side.

My take on the day -- which from a distance looks
awful for the bulls -- is to congratulate them on a
serious face save. Clearly, the new bulls have ba--s,
something our crowd seems to have lost due to the long,
hard fight.

In any event, when we get finished with the bears
they'll be singing a few octaves higher and crying for
their mammas.

It is also clear that the new bulls intend to put up
more of a fight than the gold community did. I
conclude that next week will probably see a lot of
thrust around today's lows and highs. With no pun
intended toward my friend Bill Murphy at, Murphy's Law in gold suggests
that you always keep some powder dry for that last
flop just before the parade starts again.

Therefore, I conclude that my desire to buy starting at
the $414 level might be a "hail Mary" play but I will keep
powder dry just in case. As far as praying is concerned,
I would suggest that any short who is still around a week
and a half from now should bone up on the practice of
prayer because he will need all the divine intervention he
can get. I see this reaction as the last hurrah for the
bears before the hammer drops.

Clearly, gold trading is not for children, the infirm, or the
overly sane in this brave but troubled world. The new gold
gang tried to bully gold up through the $430.30 level and
has temporarily gotten their hair singed. Apparently they
are quite new to the game but symptomatic of the new
forces that are coming into the gold market.

Buying strength in the gold market is usually bad for
your financial health. But this new gang looks much more
attuned to geopolitics than to economics. So I believe that
on their next try at $430.30 they will muscle it

I suspect the new gang is playing the gold market with a
hold strategy that will flatten the shorts in time --
probably in seven to 10 trading days from now. At the very
worst, in my opinion, the market will reverse this decline
over that period.

To sum up this week, "Shorty" Clanton and his COT
gold-shorting COMEX locals think they have the upper
hand. They are celebrating tonight. But Doc "Long Gold"
Holiday has them covered with his double-barreled
sawed-off shotgun. Wyatt Earp is due to arrive the week
after next, his trigger finger twitching uncontrollably.

So stay tuned, folks, because this shootout at the
Comex Corral is getting intense and could be a lot
bloodier than the one that took place at Tombstone,
Arizona, in 1881.

Waiting on the sidelines, of course, are also those
people whose brains have become atrophied from
listening to their gold advisers and the Prechterites,
who have called so many gold tops that they are
only distant memories.


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