A ‘White Paper’ article on contrary indicators in the emotion packed gold sector. Make it them work for, not against you.
The gold sector is peopled by a high concentration of contrary indicators because it is a relatively (to the vast world of equities and bonds) small market that offers refuge from some of the damaging aspects of the spectrum of investment products that are supported by the manipulation of interest rates and printed (and digitally created) money supplies. Thus, gold has moral high ground if an asset can be thought to have morality.
Case-based ‘White Paper’ on the importance of unbiased TA: I would like to repeat the idea that it is best to subordinate yourself to markets at all times. To put your ego aside or at least check it daily to make sure it is not leading you astray. The gold bug ego for example, hardened by a solid decade-plus of relentless bull market is in … Continue reading Technical Analysis – Put Egos Aside & Respect the Charts
Current gold ratio setups, a real world view of ratio analysis ‘White Paper’ As the Cyprus drama and other macro events play out and distort normal macro economic signals to varying degrees in the short-term, let’s review the ‘real price’ of counter-cyclical gold vs. the cyclical industrial metals: Au-GYX bottomed hard in February, MACD sported a positive divergence and now the ratio has turned up … Continue reading Gold Ratios – An Update
Today we use the recent events in the gold sector as an example of how effective use of Sentiment and Technical analysis can keep us on the right track despite what we may believe with all our rational being at any given time. i GoldBug I am bullish on gold. That is simply because I believe you can’t sustainably grow an economy by layering more … Continue reading Sentiment, TA & the Gold Correction