Tag Archives: gold

Dumping Gold to Buy Equities Has Paid Handsomely

Some investors and funds decided to increase their gold holdings near the end of last year fearing a decline in stocks. Gold rallied as a result with GLD returning 14.6% by March 14 when the total return of SPY was near … Continue reading

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A Not So Surprising Drop in Gold Prices

Although some analysts thought yesterday’s drop in precious metals was surprising, there were plenty of technical warnings that a correction was looming. As a matter of fact, last Friday we warned about the possibility of a bull trap in GLD. Share

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An Island Reversal Squeezes Out Death Cross Shorts in Gold

This blog has warned about a short squeeze coming in gold in this June 11 post. It is interesting how an island reversal, which is a classical chart pattern, invalidated a 50-200 moving average death cross and a descending triangle. Share

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High Probability of a Short Squeeze in Gold

After a death cross occurred, GLD dropped -1.8% but found support and has since gained +1.4%. The possibility of a short squeeze in GLD is real because the death cross was too obvious of a signal. If in addition the stock market … Continue reading

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It is Technical Analysis That Renders Itself Ineffective

Traders who use technical analysis should not blame malicious market makers or high frequency bots for its ineffectiveness. It is technical analysis that often renders itself ineffective. Here is an example. Share

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A Death Cross is Next for GLD

A 50-200 death cross is about to occur in GLD next week. A short-term bounce is more probable than a decline as soon as this happens due to the lag of the two averages. A development of a sustained uptrend … Continue reading

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Gold Faces Strong Resistance at the 200-Day Moving Average

Earlier today gold attempted to break above its 200-day moving average at $1,296.5 but met strong resistance. If weakness persists the next support level is near $1,272 followed by the December lows of last year near $1,182. Share

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