Riding The Gravy Train: Another Look At Gold

Riding The Gravy Train

Beating the market is fun and profitable. This is how we do it.

Sunday, November 29, 2015

Another Look At Gold

Below we present a chart of gold showing a possible supportive trend stretching back 2.5 years as well as a giant overall "declining wedge" pattern which tends to resolve upward. 

Note also the blue and orange arrows and consider the alignment of the commercial hedgers vs. large traders at those points, then look at the current levels of hedgers and traders. 





Consider the overall extreme negative sentiment on gold, illustrated in the graphics at bottom of this recent post

Here's an updated version:

 

Here's the original, from 2011:





Each time we posted it, we suffered much derision and ridicule.  We'll see who laughs last.  Certainly rabid gold bulls are not laughing now. 

When gold closed three successive sessions below $1080 last week we stepped aside on our recent NUGT entry as planned (see above link), taking a very small loss of roughly 2%.

We're looking to go long gold or something related again soon, as the biggest rally since the 2011 highs may be just ahead. 

May be.  Maybe.  The technical picture will have to change first.  Gold trading above $1090 would be a good start.


 



We receive no remuneration or incentive directly or indirectly in any way, shape, or form for buying or selling the positions we do, or for mentioning any positions or publicly traded companies in this blog. If we hold existing positions we divulge the fact. This blog is merely a diary of some of our thoughts and trades and is in no way whatsoever to be considered investment advice of any kind. Always without fail consult a competent, experienced, and honest broker or investment advisor before making any investment or speculative decisions.

Please presume that we, she, he, I, it, them, they, us and you are purely fictional characters and that everything written in this blog is satire intended for comedic amusement only, and not to be taken seriously in any way. Just like "real" analyst proclamations. Thank you.


To be notified when this blog is updated : Please e-mail christianguinness@hotmail.com with "Subscribe to blog" in the subject line or click here to do so automatically if your computer is configured accordingly. We have never shared our mailing list with anyone, nor will we. Please note that we only send update notifications when a trade idea is diarized or updated materially, not if a blog entry only contains general commentary.