Friday, December 23, 2011

All the news about GOLD Is Bad NEWS, so BUY, see this for yourself

On Thursday, my dual MACD lines, Red and Blue posted a buy signal in the GDM Sentiment Index.  The FASTER of the MACD measures (RED) has cut thru the SLOWER of the MACD Measures (BLUE), to the upside.  It is now confirmed by the Banded Oscillator on the Upper Panel, and awaiting confirmation from the conventional MACD on the bottom panel.  Does this mean Gold WILL take off to the upside ?  NO, it means we are seeing a significant signal of strength in GOLD's TREND, and must wait for it to develop. HOWEVER:   We note that  in an arithmetic chart of the $GDM, we are in a TRIPLE Bottom showing considerable support (2nd Chart)

So this concerns GOLD MINER STOCKS, Gold being the secondary play here.

The GREEN Arrows show the Points of the Triple bottom in the $GDM ( GOLD thick Dashed Line) above.

As you can see on EITHER chart, there is clear evidence of a Triple Bottom in the 1400 area.

What is pretty neat about the above chart is that it clearly shows a trading zone btwn 1467 and 1433, with a Reversal Zone @1433, which IF breeched, probably signals a down move.  BETTER than that,  if 1467 is DECISIVELY breeched to the upsides, it would be a Mini-Quad-Top Breakout which would signal a potential move to the 1580 area, which, AGAIN, IF surmounted WOULD TAKE OUT Resistance all the way to the ALL-Time-High of 1855, a fairly impressive set-up, perfectly counter-intuitive to all the news out there.  Typically it would be a 3 to 2 bet AGAINST, were it not, IMO, for the beginning of strength shown by the preliminary BUY signal of the Dual MACD measures, awaiting #2 Confirmation by the Convential MACD.

While I like betting Odds-On, I don't like betting "The Crowd", and I don't like crowds when it comes to analysis, being more comfortable doing the math myself, for myself.  I do best when I follow my own stars......

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Good Luck,

DG

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DG

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