Nerves Of Steel Ahead Of The FOMC

Your intrepid blogger observed this pattern ahead of the FOMC announcement on Wednesday.

The inverse head and shoulders pattern has formed quite clearly.  The reaction of the market to the interest rate decision will determine whether the pattern plays out.

We have positioned ourselves long on several gold stocks ahead of the meeting.  Certainly this is a risky move, yet we feel the end to the four year long bear market in the precious metal is near.

Further, developments geopolitically and economically suggest to us that the least loved metal will soon experience new friends.

Will the pattern play out, or do we need one move move down to frustrate gold bulls before the bottom finally comes?