Note to 3rd party content grabbers… this is not a post you’ll want to spend any time reviewing as it is filled with opinionated negativity. :-(
Well, he got the first two words right when he pumped the “drop dead gorgeous bull wedge” to naive gold bugs who may think any schmo with a chart (me included) and authoritative sounding words knows anything more than they do. He being someone I do not name because I am a professional, he is a competitor insofar as we intersect the gold sector * and he is not part of the MSM.
As we noted in NFTRH (#348, June 21) when this disgrace appeared (embedded in a GDX chart in a perma-pump article) for public consumption:
HUI broke out of its Wedge last week and if the gold writer who you can set your watch by had not immediately come out and lathered up naïve gold bugs thusly… “GDX is sporting a drop-dead gorgeous bull wedge pattern” it might have actually been worth considering.
This is a convenient opportunity for us to be reminded again that Wedges, either bullish falling or bearish rising, are among the most hyped things in TA. And when they do work out, they only have relevance for 1-3 days, assuming the chart is a daily like this one.
A bit later…
Here are some facts…
- HUI lost the key support parameter of 160.
- HUI is below the 50 and 200 day moving averages.
- MACD and RSI are bearish.
- HUI broke out of the “drop dead gorgeous bull wedge pattern” and then soiled itself the very next day.
- Key support levels now are the November and December lows, just as we noted last week.
- HUI is bearish until proven bullish, technically. Not the other way around.
I know I belabor the point, but when innocent or naive people ascribe such value to analytical word marketers…
So now the gold herd is left to wonder why with the world falling apart (according to the MSM) gold is not doing what pitch men say it is supposed to do (it’s not even left its downtrend vs. S&P 500 yet).
Also, what about strong US jobs and inflation driving institutions into gold? What about Indian Weddings? Love is in the air, isn’t it? How about the “China love trade” to quote our perma bull promoter. In China they buy gold for love, you know. India too. That’s actual analysis put out for public consumption. What, China is popping? There is little time for romance when you’re soiling your pants I guess.
This post is off color for this website and I am not planning to make a habit of it. But sometimes the human writes instead of the geeked out market manager.
* I know he is a competitor because I had more than one gold bug subscriber quit over the last 3 years noting that they were going with his service (and its authoritative sounding bullishness) as they got tired of my continual ‘it’s a bear market’ routine. As I have said all along, the time will come but it will probably be after 95% of the true believers are brought to their knees by ill-conceived assumptions.