My buddy Olivier ran this great article on gold the other day, so I thought I’d repost some of it here and provide a link to his site.
Gold is now trading at all time highs. That’s very bullish technical action. We have a confirmed ‘true bull market’. I am using the term true bull market as opposed to ‘cyclical bull market’ which is a counter trend within the primary trend of a bear market. Gold is the only market out there printing all time highs. It therefore is the one market that has the best potential for explosive moves to the upside. There is no overhead resistance, nobody has the urge to sell.
This is the perfect setting for prices to go parabolic.
Read the rest of the article at the Tischendorf Letter: Gold Price Trading At All Time Highs – Displaying True Bull Market Characteristics.
Victor Sperandeo echoed JP Morgan’s wisdom, saying “right now, gold is the only real money.”
And that feeling that you’re feeling about gold being too high…it’s the feeling you need to embrace b/c it’s telling you that gold wants to go higher. Listen closely. Make that feeling an ally.
Michael,
I agree that gold has the potential to 'go vertical'. I'd like to share with you an interesting trade set up pattern that has worked well in gold over the last eight years. I jokingly call it my 'Turtle filter'! This is the ninth consecutive year that gold has broken the prior year's high and it's the third consecutive year that gold has broken into a new all-time high. Each time that gold has broken the prior year's high and triggered the entry signals for the breakout buyers it has then retreated back below that previous year's high. Well, not EVERY single time: On one occasion it pulled back to just $1.50 above the prior year's high and another time it pulled back to 10-cents above the prior year's high. But that's close enough in horseshoes and handgrenades. Anyways, once gold breaks out and pulls back I place buy stop orders to go long only if/when it hits a new high for the move. If it never hits a new high I am uneffected while the traditional trend followers take a hit. The initial protective stop placement goes below the low of the week where the entry occured. I have a simple add-on and stop movement technique as well. Check it out for yourself and see what you think!
Cheers,
Jason Pearce
Michael,
I agree that gold has the potential to 'go vertical'. I'd like to share with you an interesting trade set up pattern that has worked well in gold over the last eight years. I jokingly call it my 'Turtle filter'! This is the ninth consecutive year that gold has broken the prior year's high and it's the third consecutive year that gold has broken into a new all-time high. Each time that gold has broken the prior year's high and triggered the entry signals for the breakout buyers it has then retreated back below that previous year's high. Well, not EVERY single time: On one occasion it pulled back to just $1.50 above the prior year's high and another time it pulled back to 10-cents above the prior year's high. But that's close enough in horseshoes and handgrenades. Anyways, once gold breaks out and pulls back I place buy stop orders to go long only if/when it hits a new high for the move. If it never hits a new high I am uneffected while the traditional trend followers take a hit. The initial protective stop placement goes below the low of the week where the entry occured. I have a simple add-on and stop movement technique as well. Check it out for yourself and see what you think!
Cheers,
Jason Pearce