Gold at $1800 was a touch “up there”, but in the bigger picture, the weekly chart is ultra-bullish. Click this gold liquidity flows table now. The commercials (banks) have added both longs and shorts, as of the Tuesday, November 8th cut-off date for the latest COT report.
Their action of adding some longs suggests they expected a short term move higher, which happened.
The heavy add of short positions suggests they understand that gold has run about $270 higher, from $1530 to about $1805. It’s definitely not a time to be adding long positions for anything but a flip trade.
I can’t see any benefit to you in buying gold on anything but a $100 price sale, or more. Look at a $100 move now, as you looked at a $10 move a few years ago. I understand that leveraged traders have a hard time letting go of the idea that a $100 price swing is “big”, but it has to be done.
Use your understanding of what gold is, not loans from the banksters, to build wealth in the gold market.
If you can’t view a $100 swing in the gold price as a blip, you should immediately adjust your trading size, until a $100 move is something that makes you yawn.
Click this gold weekly chart now. Note the momentum (ROC) indicator at the bottom of the chart. Despite a move up of nearly $300, this ROC indicator is still in a position where enormous rallies begin!
This weekly chart for gold is “soaked” with technical buy signals on the indicators and oscillators, but if you can’t yawn when the price corrects $100, you may not get to the honey pot of profits that awaits you at much higher gold prices.
The recent correction in GDX against the dollar caused a lot of pain amongst gold stocks investors. As with gold, you need to expand your “price horizons”. Click this GDX chart now, and take note of the 3 key HSR (horizontal support and resistance) zones, at about $67, $58.50, and $50.
The fall from $67 to $50 on GDX caused a veritable implosion of gold community morale, and I believe a lot of that implosion can be attributed to a focus on making “pots of dollars”. My suggestion is to build your fundamental faith in the companies you are invested with. If you have that faith, you embrace price sales on their stock.
What’s the difference between buying a gold stock at 15 cents, and watching it go to $1.50, versus buying one at $10 and hoping it goes to $100? Focus on getting your stocks at the cheapest prices possible, and “how high they go” will look after itself.
In the energy sector, natural gas and uranium represent two low-priced fuels. I’m invested in both, but if you had to choose just one, which should it be? In the medium term, natural gas has a supply glut that could persist for several years. Uranium is the better choice, from that perspective.