I suppose traders in gold " and I'm not referring to gold bugs who dismiss such hourly episodes " are a little rattled this morning. I notice a few writers who call themselves "experts" are now saying gold will drop below $400, which adds to the fog of the market.

How much USD trading actually took place at 3:00am ET anyway? I suppose about 60-seconds worth in regular trading hours, which tells me that the move could be another head fake.

Did the Gnomes of Beijing, Seoul and Tokyo report about 3:00pm their time that local interest rates are going to drop, or that the local economies are going to fall flat on their collective faces? If they had, then traders there would have rushed to USD, but wait " the news from the Far East (overnight my time) reports just the opposite.

So what does it all mean Alfie?

Well, what it all means to me " and I think I'm right on this one " is that it is time to buy some gold stocks. You know, the ones you've been throwing away for a week or so " like Newmont, Placer Dome, Barrick, Goldcorp/Wheaton, Glamis, etc.

Remember; after the clouds pass by, there is sunshine, and with gold, at least, I see a glitteringly blue sky ahead. And remember also that successful traders buy into weakness, and sell into strength.

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Please feel free to make comments. As you know, it takes two to make a market, and I'm not right all the time.

You do know of course that if you can be right two out of three and limit your average losses to less than your average gains, you will soon become a successful trader.