March 26, 2024 - (Gold Market Wire) - A rally is not a 'Reset', and it is important to be aware of the differences. A rally is a move to higher prices that follows a varied pattern of surges and pullbacks, where strength to move higher is built with the fuel of weak length forced out of the market and profit takers. They push the market lower, while the true bulls hold back and wait for them to expend their energy. Mr. Sinclair was a master of this technique. He could see the energy rush to sell, and would neatly side-step it, buying in increasing amounts on the way down, i.e. - the scale-down buyer.

But a Reset is when we simply leap into a higher altitude, and the back and fill doesn't really happen - or if it does, it is really shallow. Those events are rare, and it may well be that is what we have just experienced. As a result of the Reset, the daily chart, for now, has been rendered useless. It simple to see why. It went vertical and never properly retraced.

These are strange times, indeed. Normally this lack of proper retracement would set the alarm bells off - telling us to be very careful in chasing the market higher. And just to make matters more difficult - the Reset higher negates the parabolic move upwards which warns us that we are topping out. We don't have that. We don't have the back and fill. All we have is a vertical Reset. Somewhat longingly, we look for markers, like the sailor that fears he has lost his bearing. And like him, we will have to use what we have to navigate:

We still have problems putting the length back on here. But it would be a lie if we didn't admit that it is becoming more and more of a consideration. (Now you know why we carry that core position!)

Pulling back to the weekly chart certainly helps the bullish case -and it provides some much needed clarity. When the daily is such a unique formation, we need to get a wider perspective.

In this context, our bearings come back to us. We've got that (daily) resistance line just above $2200 - at around $2206. We are going to have to wait to see if we get through it. We remain cautious, for no other reason that Resets are rare events - but also, because we see no confirming action in Silver which continues to do very little.

We remain on the sidelines, equally concerned about our flat trading position, but not wanting to chase up here. We will simply have to wait for a "resolution" to this dilemma.

Patience.