Gold Futures (U.S. $492.80)

On November 1st I expressed the view that we are in the midst of a short term correction in a healthy long term uptrend. A week later I was looking at a buy signal and the short term correction was over.

The abrupt recovery that followed is a testament to the strength of the long term trend, but it takes us right back into overbought territory on the weekly intermediate term chart. I'm left to assume that we build an intermediate term top below the $500 resistance area before moving on up.

I have been a bull on the long term gold trend for some time now, and the metal has consistently exceeded my short term expectations. I cannot run fast enough to keep up with the pace of the uptrend. It's a bull's dream come true. As I see it, the long term recovery still looks like a freight train running at full throttle.