One of Yves' tricks is to look for four up days (strong) following a news item which jinks the market. A recent example is China, where you can see news drop the market, followed by four strong days up. Then BAM! down we fall.
Bugs Bunny-Bonanza Bunny
Vezi mai multe video din Animatie
Something similar has happened in gold. The second chart shows the same pattern has just occurred. The news was Dubai, and you can see the sharp reaction down. We just had four strong up days and a reversal.
The lust for the yellow metal can make us do silly things. As investors, Yves writes to us: "We have been bullish the yellow metal for a long time, but sometimes being prudent to take profit is advice well taken."
Bugs Bunny-Bonanza Bunny
Vezi mai multe video din Animatie
Let me put it this way - my mother who bought silver at it's peak way back in the '80's and who has been making a killing lately in gold stocks (because I got her in and have kept her in) - was thinking it's time to take profit. Hmmm, a kind hearted lady but not so great with the investing type stuff. We haven't seen peak gold yet. When she starts asking to buy more, then the top will be in.
The only thing I worry about is that there will be a big shake in the GLD with reports of fake bars in circulation. I think it's coming but then that will be a great buy op. Everything in good time.
Posted by: Anon | Friday, December 04, 2009 at 01:10 PM
XLF looks like it is setting up to go higher. I think the market's reaction to the rise on the dollar is surprising. Except for commodities, the market did quite well.
Posted by: cloudslicer | Friday, December 04, 2009 at 02:10 PM
Yelnik -
There appears to be a dark candle on the close today at least on the nasdaq. Should get a fairly good drop in stocks shortly - you'd think. I will sure be watching Sunday night and see if the dollar holds or continues its rally.
You have been right about the monday patterns being up. Maybe not this time.
Joe
Posted by: joe | Friday, December 04, 2009 at 03:49 PM
Hey everyone,
I found this link on youtube regarding gold. Interesting...
http://www.youtube.com/watch?v=GWnY0riDfRo
I hope everyone is enjoying their weekend!
Posted by: graspthemarket | Saturday, December 05, 2009 at 04:04 PM