Well, I'm done trading. Burned out. So I thought I'd look again at the LT gold charts. I've posted the wedge with fibs as well as a very long term with the trend lines and fibs. If the wedge breaks, it could retrace the entire move, which measures back to the low 700s. It doesn't have to retrace that much -- there are a lot of support lines before that -- but it can't be ruled out. That would also tie in pretty well with the longest trend line going back to the beginning of this bull market.

As a gold bull who likes to accumulate bullion, I ask myself, what could cause a really deep correction like the wedge implies is possible. Well, the world could get its fiscal house in order and fear would disappear and people would have no fear about the integrity of their currencies. And pigs could fly.

So I think the more likely explanation is that we could be entering a more terminal phase of debt liquidation where the forces of deflation simply bring down all asset prices, and I imagine that gold goes along because many have to sell as part of the massive unwinding, or simply to be able to sell what they have left that still has value.

If that's the case, then it really supports the proposition that the infamous C down is still to play out. I guess that's pretty much the Prechter secnario.

Maybe it won't happen, and/or maybe the wedge breaks and finds support long before returning to the 700s, but I think this gold wedge may potentially be telling us something that is much bigger than just the implications for gold.

I also think that if we should get this kind of a break, it will be an incredible opportunity to scale into a lot more gold on the way down, because this kind of scenario would almost surely lead to a breakdown in currencies and/or something approaching hyper-inflation, in which case the next leg up in gold will be even more powerful that what we've already experienced. 

OK, that's enough serious thinking for a Friday.

Best wishes to everyone for a great, long weekend. And here in the US I hope everyone has a terrific Memorial Day weekend, but take a moment to remember those who paid the ultimate price.