If the OEXpert 7 says anything, and the creator of it long ago said it works on gold, it is saying that our time is at hand. I haven’t used it long on gold, but in the very short time that I have, it has been accurate. It has 7 indicators. Price is at the first of its two lower trading bands, and that qualifies as a buy signal. F1 is at 12. It is under its lower trading band, and that is a signal. The signal is stronger if it gets to 10 or lower, and it easily could tomorrow. F2 is at -4, and that qualifies as a signal. It tends to be first, so it needs to be discounted somewhat. F3 is now at 15, and needs to get to 10. It could do that tomorrow, if the market cooperates. F4 has gotten to -2.6, and that is within spittin’ distance of a signal. Tomorrow could get us there. F5 has already signaled. It’s now at 32. It’s under 40, where the signal came on. F6 is once again at 0. It has nowhere else to go, and has signaled already, too.
Here’s the point. If tomorrow is a down day, there’s no need to wait until after the close, when positions cannot be taken before Friday’s open, to learn if all the indicators are in place. If Thursday is trading down, you can suppose the indicators would likely all be in place, and it would make very good sense to take some positions. Why is that?
It’s clear what is happening. The markets are setting up for bad news Friday morning. Everything I am looking at is saying that the markets are anticipating a very strong jobs report Friday morning. It would make perfect sense that we would get one… there’s a big election just 2 months away, and govt. wants every report to sound sweet! However, another principle about markets is that they rarely meet expectations, and they most often dash the hopes of the most participants. Therefore, I’m saying that it would not surprise me in the least if the report actually stunk, and we were to get a huge relief rally Friday, because it would make the probability of an interest rate hike to dissipate. Markets would absolutely love that, but that is not at all what it is anticipating. It’s been setting up for a very strong jobs report that would increase the likelihood of a rate increase… and, has factored that in pretty much already.
If you’re a gambler, and if tomorrow plays our way, with prices off, and the metals markets down… I’d be a buyer, and add some shares of my favorite miners. If the scenario I laid out should actually happen, we’ll all look like genius’, of course, and, if not, don’t bet the farm, or your mortgage money, as the report might still be strong, and there might still be a further negative reaction to it. But, in any case, a negative Thursday would be a great signal to me, to add some mining shares in anticipation of a rally to commence Friday… maybe! In any case… if tomorrow is down, I’m going to be a buyer!
Here’s to your accumulation of real wealth!
Harold F Crowell