4:42AM PDST GOOD MORNING GOLD BUGS!

TODAY'S REPORTS: Producer price index Core PPI Retail sales Retail sales ex-autos Consumer sentiment Inventories Gold rose overnight in a steady manner and peaked at 2:39am pdst and has been coming down since until just moments ago when it started up slowly but suddenly sold off even lower. The Euro started selling off rapidly about the same time and broke down through the 1.40 level quite rapidly to about the 1.3976 area but quickly rallied and is now at 1.3996. The big news from late last night that I just happened to see was that gasoline was jumping ONE DOLLAR A GALLON in places like KENTUCKY AND NO. CAROLINA due to the shutdown of refineries in Texas due to hurrican Ike. It looks bad for Houston and for Dan Norcini, who I expect has had to evacuate, as I did not see his post yesterday. Today should be very interesting for gold as I now believe THE BOTTOM IS IN! The INVERSE HEAD AND SHOULDERS PATTERN on my charts RESOLVES UP! I can only hope this one is for real, as I hope to lift the short leg of my hedge position in two different months and to anticipate getting out of OCTOBER GOLD before we get much closer to FIRST NOTICE for that month.. December Gold's First Notice isn't until the end of NOVEMBER. Then we jump over to Feb '09 Gold as the Front Month for gold. Say what ever prayers you think work to make gold go up from here, because this is about where gold always takes off until about March of next year. THIS IS WHERE ALL THE MONEY IS MADE!