In April the 200 WMA acted as resistance and turned the market down into the extended multi-month correction. Now the market has regained that important resistance level. I have my doubts that it will spend very long below that level if at all now that it has been recovered.
I've been harping all along on the fact that we needed to see an "obvious" correction before we could consider that we have a move into a daily cycle low. We now have it and it is taking the form of a bull flag on mild volume.
Usually a bull flag will break sharply higher as it is normally a bullish pattern. Unless we get a sharp break down out of the flag traders need to stay nimble as we could put in a bottom at any time. A swing low this late in the daily cycle will have high odds of marking a bottom.
In my opinion we hitted the Daily cycle low today in Gold at 1329.84. The move was very pwoerfull and I guess it scared many people to sell their possitions.Dolar also made a decent move to 79.49. Everyone now is expecting 80. Either we finish here or Dolar may rise to 80.30 to scare the traders.
ReplyDeletegary, for newcomers to the gold mania who have no exposure to any mining stocks ,how do suggest that we get in the mining stocks, all of the portfolio at once or slowly every week or month(dollar cost averaging). do you think you could devote some space for the late newcomers.thanks
ReplyDeleteI have been covering this in the nightly reports along with an alternate plan and stops in case I'm wrong.
ReplyDeleteYes Sensei Connor. I can see early call get squished! Just like grape! When beat down over Master Connor?
ReplyDeleteGary,what do you think about this last daily cycle in Gold?
ReplyDeleteI expect it should bring us way over previous high 1424 ,because we will expect USD index to make a yearly cycle low.