Contrarian view...it's HAMMER time!

So many people are bearish on gold right now! Setting aside the usual haters, even gold bulls are betting that gold will "retest $850." What is the basis for this "retest" other than sheer disappointment for missing the boat when gold hit $850 on 5/1. Is it fundamentals? Is the credit crunch and recession over? Or is it what elliot wave counts are signaling?

In today's Gartman Letter, Gartmam recommended that everyone should "sell gold short immediately upon receipt of this commentary." Well, I bought gold immediately upon receipt of his commentary. Why? Because I think it's time to take a contrarian view on gold...and honestly, with the overnight reversal on the the dollar and crude rallying almost $7 today, I don't think my view is contrarian anymore.

I must say I was a bit disappointed that gold did not participate in today's dollar bashing (euro and crude) as much as I would've liked, but I think gold may have been under some pressure due to short covering in stocks and a sell off in bonds. Tomorrow's job numbers will make things really choppy, and we may even see a better number than the estimated -60k. I mean it's clear that people are losing jobs, and I think the market is pretty well aware of the fallacy behind the BLS birth/death model. At the end of the day, a gold rally regardless of a good or bad job number will signal a significant defeat of the gold bears for the medium term.

Gold did sell off to about $865 early this morning, but the bulls charged back to form a sizable hammer for the day.
Gotta believe in the hammer!