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Just had to share a bit of chart wisdom I saw on a twitter account concerning Gold stocks.They showed a chart where last year GDX had 4 occurances when a particular chart formation was observed.All 4 times last year resulted in a 20-30 percent gain in the next month or so.This also just happened on August 26th.So fingers crossed this goes 5 for 5.Also as you know margin debt basically unchanged.September will be interesting.Cheers.
Its a GDX chart that had a gap up opening with a higher close than the previous days close on higher volume than the previous day.On the bottom Bollinger band .Easy to see because they were at their lows each time..Happened in late June 2013 July 2013 August 2013 and December 2013..Pretty impressive to see.I ll check the name and text it.
The guys name is Tommy Humphreys.His charts are at CEO.Ca.Where I found this is on marketwatch.com and after I typed in GDX to get a goldminers quote they have a little blog section down below and he had a comment and a link to his site.Interesting to see if he s right.Cheers.
I see what you mean. However, the analogies do not work for a simple reason. You need at least 3 occurrences of an event to call it an analogy or resemblance or whatever you call it. And more often than not, the 4th one fails to do the same. No analogy lasts forever. Once an analogy is noticed by someone it's likely that it has run its course. I see more down side on gold and I'm not invested in any gold stocks. I want to see more extreme bearishness to put money on gold. There are better entries on grains imho.
Just had to share a bit of chart wisdom I saw on a twitter account concerning Gold stocks.They showed a chart where last year GDX had 4 occurances when a particular chart formation was observed.All 4 times last year resulted in a 20-30 percent gain in the next month or so.This also just happened on August 26th.So fingers crossed this goes 5 for 5.Also as you know margin debt basically unchanged.September will be interesting.Cheers.
ReplyDeleteWhich chart is it?
ReplyDeleteIts a GDX chart that had a gap up opening with a higher close than the previous days close on higher volume than the previous day.On the bottom Bollinger band .Easy to see because they were at their lows each time..Happened in late June 2013 July 2013 August 2013 and December 2013..Pretty impressive to see.I ll check the name and text it.
ReplyDeleteThe guys name is Tommy Humphreys.His charts are at CEO.Ca.Where I found this is on marketwatch.com and after I typed in GDX to get a goldminers quote they have a little blog section down below and he had a comment and a link to his site.Interesting to see if he s right.Cheers.
ReplyDeleteI see what you mean. However, the analogies do not work for a simple reason. You need at least 3 occurrences of an event to call it an analogy or resemblance or whatever you call it. And more often than not, the 4th one fails to do the same. No analogy lasts forever. Once an analogy is noticed by someone it's likely that it has run its course. I see more down side on gold and I'm not invested in any gold stocks. I want to see more extreme bearishness to put money on gold. There are better entries on grains imho.
ReplyDeleteI understand what you re saying...thanks for the advice.Just thought I d send an interesting tidbit your way.Cheers
ReplyDeleteAlways appreciated thanks a lot.
ReplyDelete