This week we had the Fed meeting notes on Wed and the G20 summit. All of which should have been good news for the economy and bad news for the dollar. But instead it feels like the market was waiting for these events to be done and then piled onto a dollar reversal - up.

Most other currencies are looking like they topped. The most ambiguous is the Euro, which is oscillating below recent highs.  It’s possible this week the dollar will ease off a bit from its last up move, but the odds are increasing that a dollar rally has started.

So for those trading gold, this week may be the last chance to sell what you want to sell at a price near the high. If gold climbs again to the low $1000’s and collapses in early October, it looks like we’ll see a test of the $960 level. Then let’s see if that holds. As discussed previously, you might consider a stop or several stops under that level, giving it a generous margin for overshooting, as gold often does.

There are likely a lot of stops at or slightly below $960 so we will see the Comex pit traders trying to gun for those.  That should cause a sharp decline, easily to $940. Then if gold can get quickly back above $960, we might be ok. Otherwise, look out below.

Ron Rosen is still firm in his conviction that a C leg is starting soon or has started already and will finish at slightly below $680 at about this time next year, possibly as early as end of July. If that scenario unfolds, there will be lots of pain everywhere in the markets, as it could be accompanied by a new low in equities.

However, there are no guarantees in this business. We just have to see what happens and be prepared to act when the time is right. And right now is the time to sell into strength. Holding core positions is no problem but keep stops on positions that were entered at a level near $900. Holding physical gold is a good idea always, but keep in mind that if we get the C leg down there will be a great opportunity to buy more, so keep in mind you will want some cash if that happens.

After the C leg down gold should embark on the major Wave 5 up which will include the parabolic, blow-off top. So if you can hold on a few years you don’t need to worry about buying anywhere under $1000. Your personal circumstances will dictate what you should do.