The Gold Signal

[target2019]

Gold is gonna test resistance after being in a 3-year down channel.

Chart of the Day - Gold testing resistance

Who's watching this signal? Are we going to the barbershop soon?

BTW, the chartoftheday does not come every day, so you may want to subscribe.

[heeyy_joe]

Headline: Shiny Gold Flashes Signal, Buy Now Get a Free Haircut.

[ls99]

Gold signal: he who has the gold gets to make the signals.

[CaliforniaMan]

After everything we know about markets, I just don't get why people still do this. However one draws lines on a chart of historical prices, how does that signal anything about the future?

[samclem]

Quote:

Originally Posted by CaliforniaMan After everything we know about markets, I just don't get why people still do this. However one draws lines on a chart of historical prices, how does that signal anything about the future?

There's an entire industry based on this, what are you trying to do--ruin everything??
I love the patterns that the "technical analysts" divine out of nothing. Or the 200 day moving averages that are often cited: Why 200 days? Seems somebody should do a sensitivity analysis and see how the buy/sell decisions would change with 222 days or 183 days.

[FIREd]

I am fascinated by the non-linear scale on the Y-axis. It sure makes the nearly 40% drop in gold prices since 2011 look like a non-event...

[haha]

Since this I just a semi-log chart, what we are seeing is % change, not $ change portrayed by equal vertical distance at different price levels. Isn't this just reality?

Ha

[FIREd]

Are semi-log charts the norm in technical analysis? I would not know.

ETA: I found a few other examples of semi-log charts on the internet, so I guess it's not as self-serving as I expected.

[haha]

Quote:

Originally Posted by FIREd Are semi-log charts the norm in technical analysis? I would not know. ETA: I found a few other examples of semi-log charts on the internet, so I guess it's not as self-serving as I expected.

There is of course no rule. I believe the most sophisticated charts do tend to be semi-log.

My main source of charts lets the user choose which type he wants to see. In pre-internet days I subscribed to a quarterly chart book; all of these were semi-log.

Ha

[beowulf]

I use the fail safe method that is always right to predict the future price of gold. You can find it here: Magic 8 Ball, Magic eight ball, Magic Ball, Magic Ball 8: get answers

I asked where the price of gold was heading and received a very astute response.

[target2019]

This is too easy. In the article and video John Bollinger makes mention of a strategy. First, wait for GDXJ to cross up over the upper Bollinger Band. Then watch for GDX to do same. Finally you'll see GLD take off for another jaunt upwards.

http://finance.yahoo.com/blogs/talki...231157465.html

[CaliforniaMan]

Personally I am waiting for breakthroughs as Mars in Libra opposes Uranus in Aries. Really going all in if it coincides with a transit of Jupiter.

[traineeinvestor]

Quote:

Originally Posted by CaliforniaMan After everything we know about markets, I just don't get why people still do this. However one draws lines on a chart of historical prices, how does that signal anything about the future?

Max Gunther on charting:

"Chaos is not dangerous until it begins to look orderly."

[target2019]

Quote:

Originally Posted by traineeinvestor Max Gunther on charting: "Chaos is not dangerous until it begins to look orderly."

Thanks for bringing up this author. Just now I skimmed "The Zurich Axioms" and found it to be very interesting. I intend to read it in full some day. The author has written many books, and I have a lot to learn.

I was expecting the author to be dismissive of trading and speculation, but found that not to be the case. One takeaway for me at least, is that those who speculate and are successful do so by reacting to what happens now, rather than what happened in the past. However, is "now" completely independent of the past? How do you know where things are, or where they might go, if you don't have a baseline signal?

http://www.tischendorf.com/2011/04/2...-and-prophets/

[beowulf]

"How do you know where things are, or where they might go?"

You know where things are now because that's where they are. They can't be somewhere else if they are where they are . They might go anywhere. If you know that, you will be the richest person in the world .

Remember, wherever you go, there you are .

[NYEXPAT]

I got burnt last year on the miners, but thought GLD looked interesting about a week ago. I have never bought the Juniors but the article made me take a look see and I took a position after seeing that chart. Nicely rewarded on both today. I originally planned to sell the GLD between 132 and 137 but if the juniors break out, I may hang on for the ride.

[calmloki]

Send me a memo on how this all shakes out - bought some Philharmonics back when they were about $400 each - you know, around the turn of the century. Held them up past $1800 and back down. At least we can still hold them, as opposed to our GM pre-bankruptcy stock.

[target2019]

Quote:

Originally Posted by NYEXPAT I got burnt last year on the miners, but thought GLD looked interesting about a week ago. I have never bought the Juniors but the article made me take a look see and I took a position after seeing that chart. Nicely rewarded on both today. I originally planned to sell the GLD between 132 and 137 but if the juniors break out, I may hang on for the ride.

Nice pop yesterday for GDXJ juniors. There are articles on whether or not the gold miner stocks will ebb and flow with gold prices as in past. That caused me to pause.

I'm still watching.