#Gold: Looking at relative perf since start of this 2.5-month mini rally in Gold Stocks #charts @MasterMetals

#Gold: Looking at relative perf since start of this 2.5-month mini rally in Gold Stocks #charts

The MasterMetals Blog

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Moving averages point the way for #gold, #silver stocks Investor

$GDX, $GDXJ and $SIL could soon test moving averages which have been resistance for the past 13 months.

Moving averages point the way for gold, silver stocks

Resource Investor 

The gold and silver stocks have rebounded nicely but have consolidated in recent weeks. Where is this going and how do we know? Well, a few weeks ago we publicly said that a major bottom is in. Thus, we believe the trend will go higher. Beyond belief, we need real confirmation that the sector will continue higher. Enter moving average analysis. By using a few simple moving averages we can better understand the current context and get confirmation that the sector will continue to move higher. GDX, GDXJ and SIL could soon test moving averages which have been resistance for the past 13 months.
First lets start with GDX. The 150-day moving average provided resistance at the start of 2013 and then the market declined and remained below its 50-day moving average for months. The 150-day moving average provided resistance again after the June bottom. Now that the market has reclaimed the 50-day moving average which has turned up, it is in position to break above the 150-day moving average which is flat and no longer declining. Keep an eye on the RSI which should push above 70 to confirm a breakout. Upon breakout, the medium term target becomes $31.

There is a similar picture in GDXJ. The market failed at the 150-day moving average in January 2013 and then remained below the 50-day moving average until August. The summer rally failed at the still declining 150-day moving average. Now GDXJ has reclaimed the now rising 50-day moving average and is in position to breakout above the 150-day moving average. The RSI recently hit 70 and has remained above 50 during this consolidation. It definitely needs to push above 70 in a breakout scenario. In the breakout scenario the medium target becomes $51.

For SIL and the silver stocks we use the 200-day moving average. That average provided support in November 2012 but then resistance in February 2013 and then for the summer rebound in August 2013. SIL has now reclaimed the 50-day moving average and is in position to retest the 200-day moving average. Again, look for the RSI to confirm the breakout. In that scenario, the next resistance target becomes $16.50.

The near-term analysis is quite simple. The 50-day moving average appears to have become strong support for these markets which appear ready to test what has been resistance over the past 13 months. Note how that resistance (the moving averages) is no longer declining but is flat or flattening. That illustrates how the downtrend is all but over. A strong close above the moving averages will all but confirm that the downtrend is over and could more importantly lead to some very strong moves. GDX at $24 has an upside target of $31. GDXJ at $37 has an upside target of $51 while SIL at $12.50 has an upside target of $16.50. Keep an eye on these markets as a breakout above these moving averages would be quite significant. If you’d be interested in learning about the companies poised to outperform the sector, then we invite you to learn more about our service.
Jordan Roy-Byrne, CMT, can be contacted at Jordan@TheDailyGold.com.

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Dennis Gartman’s 19 Rules Of Trading

Dennis Gartman’s 19 Rules Of Trading – Business Insider

2013 was great year for stocks and a crazy year for bonds.
But the amount of money you made depends on how you traded.
Dennis Gartman, editor and publisher of the Gartman Letter, has 19 rules of trading from 2013. But these hold true in general.
Here they are verbatim:

  1. NEVER, EVER, EVER ADD TO A LOSING POSITION: EVER!: Adding to a losing position eventually leads to ruin, remembering Enron, Long Term Capital Management, Nick Leeson and myriad others.
  2. TRADE LIKE A MERCENARY SOLDIER: As traders/investors we are to fight on the winning side of the trade, not on the side of the trade we may believe to be economically correct. We are pragmatists first, foremost and always.
  3. MENTAL CAPITAL TRUMPS REAL CAPITAL: Capital comes in two forms… mental and real… and defending losing positions diminishes one’s finite and measurable real capital and one’s infinite and immeasurable mental capital accordingly and alway.
  4. WE ARE NOT IN THE BUSINESS OF BUYING LOW AND SELLING HIGH: We are in the business of buying high and selling higher, or of selling low and buying lower. Strength begets strength; weakness more weakness.
  5. IN BULL MARKETS ONE MUST TRY ALWAYS TO BE LONG OR NEUTRAL: The corollary, obviously, is that in bear markets one must try always to be short or neutral. There are exceptions, but they are very, very rare.
  6. “MARKETS CAN REMAIN ILLOGICAL FAR LONGER THAN YOU OR I CAN REMAIN SOLVENT:” So said Lord Keynes many years ago and he was… and is… right, for illogic does often reign, despite what the academics would have us believe.
  7. BUY THAT WHICH SHOWS THE GREATEST STRENGTH; SELL THAT WHICH SHOWS THE GREATEST WEAKNESS: Metaphorically, the wettest paper sacks break most easily and the strongest winds carry ships the farthest,fastest.
  8. THINK LIKE A FUNDAMENTALIST; TRADE LIKE A TECHNICIAN: Be bullish… or bearish… only when the technicals and the fundamentals, as you understand them, run in tandem.
  9. TRADING RUNS IN CYCLES; SOME GOOD, MOST BAD: In the “Good Times” even one’s errors are profitable; in the inevitable “Bad Times” even the most well researched trade shall goes awry. This is the nature of trading; accept it and move on.
  10. KEEP YOUR SYSTEMS SIMPLE: Complication breeds confusion; simplicity breeds elegance and profitability.
  11. UNDERSTANDING MASS PSYCHOLOGY IS ALMOST ALWAYS MORE IMPORTANT THAN UNDERSTANDING ECONOMICS: Or more simply put, “When they’re cryin’ you should be buyin’ and when they’re yellin’ you should be sellin’!”
  12. REMEMBER, THERE IS NEVER JUST ONE COCKROACH: The lesson of bad news is that more shall follow… usually hard upon and always with worsening impact.
  13. BE PATIENT WITH WINNING TRADES; BE ENORMOUSLY IMPATIENT WITH LOSERS: Need we really say more?
  14. DO MORE OF THAT WHICH IS WORKING AND LESS OF THAT WHICH IS NOT: This works well in life as well as trading. If there is a “secret” to trading… and to life… this is it.
  15. CLEAN UP AFTER YOURSELF: Need we really say more? Errors only get worse.
  16. SOMEONE’S ALWAYS GOT A BIGGER JUNK YARD DOG: No matter how much “work” we do on a trade, someone knows more and is more prepared than are we… and has more capital!
  17. PAY ATTENTION: The market sends signals more often than not missed and/or disregarded… so pay attention!
  18. WHEN THE FACTS CHANGE, CHANGE! Lord Keynes… again… once said that “ When the facts change, I change; what do you do, Sir?” When the technicals or the fundamentals of a position change, change your position, or at least reduced your exposure and perhaps exit entirely.
  19. ALL RULES ARE MEANT TO BE BROKEN: But they are to be broken only rarely and true genius comes with knowing when, where and why!

Dennis Gartman’s 19 Rules Of Trading – Business Insider

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Is #India’s Economy Collapsing? – #Infographic

Is The Indian Economy Collapsing? – 87th Fryday Poll – Facts & Infographic

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#Copper Net Non-Commercial Futures Positions: -793, Net short positions increased 673

 Copper Net Non-Commercial Futures Positions: -793, Net short positions increased 673

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Indian #Rupee Collapses – Worst Day In 20 Years

Since May 2nd, holders of paper Rupee have lost 18% of their purchasing power while those that held gold instead have seen their ‘wealth’ appreciate 13% in local purchasing power.

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Presented with little comment (over our earlier detail) but just to note that around the world there are significant events occurring (even as the US equity market slumbers). So much for the gold coin ban – gold now trades at 4 month highs in Rupee terms. Today’s 1.46 Rupee slump is the largest in absolute terms since 1993… (the largest single-day percentage depreciation since 9/22/2011)… and the last 4 weeks’ move is the largest since 1991… And just for fun, since May 2nd, holders of paper Rupee have lost 18% of their purchasing power while those that held gold instead have seen their ‘wealth’ appreciate 13% in local purchasing power. Charts: Bloomberg
 
 
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Indian Rupee Collapses – Worst Day In 20 Years

Presented with little comment (over our earlier detail) but just to note that around the world there are significant events occurring (even as the US equity market slumbers). So much for the gold coin ban – gold now trades at 4 month highs in Rupee terms.

 

Today’s 1.46 Rupee slump is the largest in absolute terms since 1993… (the largest single-day percentage depreciation since 9/22/2011)…

 

and the last 4 weeks’ move is the largest since 1991…

 

And just for fun, since May 2nd, holders of paper Rupee have lost 18% of their purchasing power while those that held gold instead have seen their ‘wealth’ appreciate 13% in local purchasing power.

 

Charts: Bloomberg

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#GOLD has crossed its 50 day Moving Avge

$GOLD – SharpCharts Workbench – StockCharts.com

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With today’s move in #gold we thought it appropriate to show our readers these two #charts on Gold from Peter Degraaaf

With today’s move in gold we thought it appropriate to show our readers these two charts on Gold from Peter Degraaaf.

Featured is the weekly gold chart, with the US dollar at the top.The rising dotted lines in the gold chart coincide with falling dotted lines in the US dollar index chart.The long uptrend line supporting the dollar coincides with the latest correction in the gold price.The arrow in the dollar chart points to a possible breakdown below the rising trend-line in the dollar (once price drops below the arrow).In the event that this occurs, it is very likely to coincide with the gold price rising above the arrow in the gold chart.The supporting indicators at the bottom of the chart are turning positive.(Chart courtesy Stockcharts.com)
This chart courtesy 24hgold.com shows the amount of gold bullion at the COMEX that is registered and available for delivery, currently 935,000 ounces – the lowest amount in at least five years. Notice how the previous low in this chart in mid- 2011 (single dot), coincided with the gold price bottoming at $1500 and subsequently rising to $1915. The high point in this chart at the end of 2011 (two dots), coincided with the gold price topping out at $1915. “History does not always repeat, but it often rhymes..Mark Twain.
Disclaimer:Please do your own due diligence.I am not responsible for your trading decisions.Investing involves risk.

The two most important charts you’re likely to see all day by Peter Degraaf

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#Infographic: Rise of the #Yen #FX Contracts | OpenMarkets

In terms of currencies, 2013 has been the year of the yen.  Japan’s Prime Minister Shinzo Abe took office in December 2012 with the promise to devalue the currency, and make the country more competitive in global trade. He’s delivered, and markets have followed with great interest, causing many to declare “currency wars” as other economies have raced to adjust the value of their currencies in response.
Abenomics, as it’s been called, has taken hold, and CME Group’s FX markets have responded, breaking several yen trading records, including the monthly average daily volume record in June. At the same time, we’ve seen that Fed officials have indicated that the end of QE is near, so long as the unemployment rate appears on a path toward 6.5 percent in 2014. Both central bank actions seem to have un-pegged the dollar and yen in recent months.
We created this infographic to trace the economic events this year with the growth in JPY/USD trading.

Infographic: Rise of the Yen FX Contracts | OpenMarkets

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Is #Gold forming an Inverse Head & Shouldern Pattern?

Is #Gold forming an Inverse Head & Shouldern Pattern?

Head and Shoulders Bottom (Reversal)

The Head and Shoulders Bottom, sometimes referred to as an Inverse Head and Shoulders, is a pattern that shares many common characteristics with its comparable partner, but relies more heavily on volume patterns for confirmation.
As a major reversal pattern, the Head and Shoulders Bottom forms after a downtrend, and its completion marks a change in trend. The pattern contains three successive troughs with the middle trough (head) being the deepest and the two outside troughs (shoulders) being shallower. Ideally, the two shoulders would be equal in height and width. The reaction highs in the middle of the pattern can be connected to form resistance, or a neckline.


$GOLD – SharpCharts Workbench – StockCharts.com

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