Time again to short gold stocks

Above is a wave count on XAU. In our eyes, the 5 waves down are clear with a triangle at the fourth, followed by a 3 wave rise, including a triangle in the b wve position. We will reshort gold/silver stocks at the double top, with a stop above the double stop. If our labelling is right we could have one hell of a ride down in the coming few weeks.

Rant (feel free to ignore):- We have been questioned quite a few times about the validity of TA and if it is really so powerful why doesn't everyone use it and therefore rendered useless. Our view of a stock price is that of a machine (or function/ stochastic process) with inputs at every time instant  since its inception. The news now creates a new input for this machine and based on all the inputs thus far, the machine gives us a new output for the next instant, the stock price. A chart is a simplistic way of capturing this relationship in time. Sometimes, whatever be the input at the next time instant, given all the inputs thus far, the function can output only a few selected values. Think of it like a degree of freedom. For e.g if there has been only  good news on a stock and it has soared relentlessly, the "surer" output is it is going down e.g AAPL circa 2008. What TA does is place odds on this "sure" bet. In our opinion quite a few technicians (including ourselves) try and time every small wiggle as if external factors don't matter. Of course they do, but the question is always to what extent. e.g in sep 08, when the bank bailout was not passed, the market crashed. The congress turned around immediately and passed it. It promptly crashed again. So one can think of it like the degree of freedom in this case was by how many points it was to crash. The unsure bet was by how many points. Since picking such moments of surety is quite subjective (in our opinion atleast), it is difficult to time every move. Often the best thing to do is not trade the stock and look for stocks with the right setup.