I watch the metals and the miners… but, sometime, during the day, yesterday… I got an email from the stockcharts.com people, specifically John Murphy, and got all the whys.

Bond yields have fallen to their channel lows. Conversely, bond prices have risen to their channel highs. The $USD has fallen to about its 200-day mov avg line. And, gold? Well, gold has risen to its 200-day mov avg line. Since all of these 4 components are nearly all right at their respective support or resistance lines… the expectation is that they could now all reverse and go back the other way… or, and what many will be watching for; each could break their respective lines of support or resistance, and then we’ll see an all-new move in the direction of their breaks.

If those lines hold… gold will go down. But, if those very same lines should be broken, gold will lift-off. I’m of an opinion that scenario number 2 is what will happen, and gold will launch. If so, we’ll call it, and got on-board for that ride. More to follow…

Harold

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2 thoughts on “Info Comes My Way

  1. Thanks Harold.

    I too believe Gold will move higher (Possibility 2) but obviously that is TBD.

    My reasons are more environmental then the charts but having the charts in agreement sure is reassuring.

    There is lots of turmoil in the world, much self generated/inflicted in/by the USA.

    I expected the attempt to repeal the Affordable Care Act would fail. And I expect that failure to lead to other failures or limited successes in the areas of Tax Cuts/Reform and Infrastructure. And The Wall is going nowhere because Mexico ain’t paying for it.

    Then there are North Korea launching missile tests like it is the 4th of July and who knows what Iran will do….

    If the US economy doesn’t accelerate as anticipated it would because of Administration policies, The Fed might only raise interest rates one more time in 2017 not two (for three total in 2017).

    I have held onto my $9.45 NUGT position but I have also executed some Day Trades which reap a a quick 20 to 25 cent profit.

    That’s my 2 cents, let’s see what the day brings.

    Now if Gold does move higher, how high can it go, how long will it run ?

    Keep a good thought.

    Dick Stagnone

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  2. Dick, I don’t try to guess the how high, or how long, but I do measure “risk” by technicals, and when risk measures high, I’ll start talking about it, and we’ll begin planning our profit-taking exit. If it breaks out, it could sure be a doozy! I don’t doubt your other reasons. Harold

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