I have spent hours, days even, immersed in technical analyses of the price of gold, the sustainability of the Dow's rise, the duration (and endpoint???) of the Venture's slide, the copper supply-demand-stockpile situation, and whatever other data seemed important that day.
I have spent an equal amount of time reading about the randomness of the market, how tradeable patterns only happen three times before traders annihilate them, how that action irons out big picture trends, and how you're better off betting on a race between drunk puppies.
The truth is somewhere in the middle. Some events or developments are predictable; others are not. The market reacts to each in different yet related ways. Emotion and momentum definitely create significant patterns, some of which are tradeable.
But the harder you look, the more patterns you will see. Which brings me to my two new favorite technical analyses of the price of gold.Vampire fans will love the first, which proves that gold moves with the moon's cycle. I mean, every full moon corresponds to a gold peak, trough, or price acceleration. Clearly.
Credit to tech analysis guru Tom McClellan of McClellan Financial Publications, who used it in his daily McClellan Market Report yesterday.
Realizing the overlap of two patterns, like lunar cycles and the price of gold, is one form of technical analysis. Another is using trendlines, which smooth out daily gyrations and make momentum movements more obvious.
When these trendlines develop around the price of gold, traders tremble.
Some tremble in fear, knowing that camel vomit is highly acidic and thus burns a hole in the ground one-third as deep as the camel's kilogram mass in centimeters. (Camels average 800 kg so vomit holes are easily 2.5 metres deep – a touch more than the camel's hoof-to-hump height.) A full camel puke would take gold down to US$750.
Other tremble in anticipation, knowing that camel vomit has just the right elasticity and surface tension to bounce. Bounces average the pint volume of the vomit in decimeters, so a serious 7-pint puke becomes a 70-cm bounce – usually about camel shoulder height. From there the wind speed and direction take over, so it's anyone's guess.
I'm worried and excited. The next full moon is Dec. 8, so if the bouncing vomit indicators are correct we should be in for some serious pre-Christmas upward gold price acceleration! If the camel vomit holers have it nailed, however, Dec. 8 will be a gold bottom not seen for a decade.
Pack your planetary ephemeris and saddle your camel folks – science says it's going to be a wild ride.
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In her letter, Resource Maven explains what she is buying and selling, and why. Maven has bought into several of the markets best - performing stocks well ahead of the curve. She regularly identifies exciting new exploration opportunities and manages the inherent risk by selling some into speculative gains. And the mine builder and operator stocks that form the basis of the portfolio give strong, ongoing leverage to the rising prices of gold and silver. She has your precious metal bases covered.
Thanks for all your hard work, but especially your honesty and integrity. I can feel your desire to take of us through your writing. As you have recently written, that is not always the case in this sector….I’m sure your new subscribers have no idea what they are in store for. I have almost doubled my portfolio since the lows in March. I would have done even better if I could have exited my positions when you recommended them, but I was overseas and unable to act. I was okay with it as I knew from experience it would bounce back. and boy has it AND ITS JUST STARTING!... After many years in the red, all but of a couple of stocks are in the green. The daily rise in my portfolio is unbelievable. And a lot of that is happening is because I trusted you. I’m afraid I’m going to need the benefits of your hard work and wisdom to once again help my family and because of all your hard work I’ll be able to if they need it. I can’t thank you enough for the sacrifices you make to make what you do possible. If your religious at all, you really are doing God’s work. You are making a difference in many peoples lives.
Blessings upon you and your family.
I'm one of your new subscribers (by way of investing.com) and just want to belatedly thank you for the recent sell recommendation that saved me quite a bit of money. (I also follow a few other mining newsletters, and, like so many other financial analysts, they were too hesitant and biased against putting out sell alerts.) And I find your newsletters very nicely done in general.