So, whatever took place back on the 15th, two weeks ago… as far as giving us all reason to watch for the exciting kick-off to a brand new rally in gold… technically speaking, all comes to naught today, if there is not going to be a confirmation, follow-through rally to give that first one credence.

And, here we are, on the morning of Day 10, and the metals have not rallied overnight, overseas, or opened up bigly here in the U.S. So, we’ll see how this day goes, and write of the result after its over. I never took any new positions these past 2 weeks, though I had “threatened” to, but reason or fear got to me first, and I never pulled the trigger. If you did, I trust you kept them on a very short leash, and that you will consider closing them out, perhaps as soon as before this day’s close. We’ll see if today’s action reflects other traders doing that very same thing… will it decline into the close, toward the end of the trading day?

In the future, I will await a confirmation, and this experience has helped me to see the greater wisdom in wanting to do so.

Harold

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One thought on “Wednesday, Day 10

  1. two questions–1) Anyone heard about Bill Poulos’ Profits Run Gold and Silver Trader service? It is $3500 but will offer you first year at $2500 (actually you will get 2 years) with a 60-day risk free trial. He does short term calls and puts on gold and silver stocks (miners and ETFs).

    Anyone tried it?

    2) anyone heard of trading the gold-silver ratio? When gold goes to 80-1 compared to silver, you sell an oz of Au for 80 oz. silver. When it drops to 45-1 you sell the silver and buy 1.8 oz Au. Now you have an extra 0.8 oz. of gold with no risk (just transaction costs).

    You could do this with GLD and SLV, I think. right now it is about 70-1 (68.5-1 actually). It was last 80-1 back in early 2015. Rihgt now, the ratio of GLD / SLV is 6.9 which is close to 10 times less the actual ratio. So today, if you have 100 shares of GLD, you sell them and use the proceeds to buy 690 shares of SLV. You hold until the ratio drops to about 4.5 then you sell and buy as much GLD as the proceeds from 690 shares SLV will buy.

    I need to back-test it. One of the reasons I am looking at the ETFs rather than the metals themselves is the 28% tax on precious metals’ profits.

    Like

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