GoodVibe Market Vibes - Dude, gold is prepared to break out big time!
"I realized technical analysis didn't work when I turned the charts upside down and didn't get a different answer." Warren Buffett.
I like Warren and his quotes and find great wisdom in them including the one above. ;) Here's an example of the upside down chart of gold that gives you actually a different answer than the normal one! It says; "Dude, gold has bottomed and is prepared to break out big time!"
Unfortunately, we don't trade the "upside down" one, we trade this one:
For those who present only one side of an analysis that fits their conviction and pass it as "The Only Technical Analysis of Gold You Need Right Now", if my first chart is pretty telling that we have a bottom in gold, then why the second one doesn't give you a great alarm that gold is not bottoming as you believe but topping? Not only twice but three times!
If you follow my technical analysis of precious metal carefully, you will know that I called for them to have a run up until the dollar finds footings. Click here to read this blog and my comments below it to see how I analyzed and traded silver, picking the third top in a row here in CAPS. My third call for a new lower high in silver @ $17ish (as well as a move for gold from $860 to $1000ish) was no brainier. Now, it's really the tough call.
If you keep focusing on the trees instead of the forest, I hope this mental exercise you got from this blog gave you a pause to think and question. By the way, I claim no super power but I am always willing not only to see both sides but also consider them and provide them in my analysis. I hope you will do too. I thought to come and tell you at this junction when almost everyone is expecting and saying that gold and silver are heading to the moon and this pullback from above $1000 is just building momentum, to reconsider. If I am wrong, I will be happy not only to come and say so but also thank you and join you. For now, this is where I stand.
For another mental exercise, how about if we flip the chart over instead of upside down, can we tell how the gold's chart will look like in the future? Yes, sir! But don't use this one against me if it will not look exactly the same. :)
I want you to understand that this blog is not only about gold alone but also silver and miners as well as the US Dollar, major currencies, commodities, and equities. In this market, all rise together while the dollar falls, and all fall together while the dollar rises.
When and if the dollar rises (from my last call, so far so good), you don't want to be in anything but US dollars or on the short side of the market. This is what I believe and this is where I have my bets on. Sometimes right, sometimes wrong, but always put my money where my mouth is!
As Sinch said in his blog; "Sometimes, the best analysis is the simplest." I couldn't agree more!
For more market analysis (simple and in depth), click here. You will find market calls and short summary about market direction as well as frequent chart updates, live chat room, and much more.
As usual, I wish you as much as you wish for yourselves and even more.
PS. I hope Sinch will take this blog as a productive critique to his buddy and guru, Jim Sinclair's technical analysis as well as himself. It's in the spirit of sharing in hope it might add value. I found his blog I referenced to be very entertaining but bias to say the least and I thought it's relating to this blog so I decided to bring it up, Dude. :) Be happy!