17 thoughts on “CHART OF THE DAY

  1. MuffinTop

    I’d like to see a 50% retracement as well but those two candle wicks are rather bullish in my books 😐

  2. AlexP

    yeap, good work, Gary.
    As the dollar is to touch (tomorrow) and to take a rest (on Tuesday-Wednesday) at its falling DC trendline:
    – gold will fall nicely into its HCL
    – oil will do the same as you just commented
    – SP500 will put some dojis or shallow pullbacks on its chart to resume strong upward momentum driven by retailers’ “vindication buying” while bearish divergences will mount as stocks go higher later next week and early the other.

    whatsoever, if SP500 continues up early next week on strong upthrusts while the dollar stay cosy at its trendline, that will be a sign of exhaustion and that DCH in stocks will come next week –> I will sell all my non-RUBI positions into that retailer-driven strength before institutions kick in

  3. AlexP

    ….just one more add-on: regardless of how stocks play out by this Wednesday (either dosjis & small pullbacks or strong upthrusts), it is clear that this DC in stocks will be a messy one and most likely also a short one (arround 30-day long into early November on Employment Situation) –> retracement of fib38% at least

  4. David Silver

    I just don’t know about crude falling from these levels, I don’t agree with most here but that’s the beauty of Wall St. and makes her tick.

    Is rather be a contrarian anyday anytime.

    1. Bill in Tokyo

      Actually, the word “if” was in that buy signal.

      “P.A.S: system enter long if price is above 1185.”, it says.

      So that’s a price just above Friday’s intraday high.

      My money is on Gary and his cycle magic. We’ll see.

      1. gary Post author

        I’m going to point out a few flaws in Tony’s article.

        First he notes that bear market rallies only last 2.5 months and that this one is over three months long. Possibly that is because it’s not a bear market rally this time.

        Both gold and silver were not capped by their long term bear market trend lines this time. On the contrary they have both broken through those trend lines.

        The HUI has also broken through it’s long term trend line for the first time in almost 4 years.

        And finally I don’t see any evidence that the dollar is about to go higher. On the contrary I see a market that has consistently been making lower lows and lower highs all year. That’s more indicative of a new bear market than a continuing bull.

        This is how ever bear market ends. Traders become conditioned to only expect price to fall so they miss the signs that a turn may be happening. There are many signs that this may be different than the the bear marekt rallies that came before. Sentiment reached extremes not seen since the 2002 secular bottom. The COT reached extremes not seen since the 2002 bottom. Volume levels on the triple leveraged mining ETF NUGT have been gigantic over the last couple of months. The intermediate cycle has become right translated for the first time in three years. And finally gold retraced 50% of the entire move from 2002 to 2011. That is a logical spot for this cyclical bear to end.

  5. Mr. Edge

    I have read several articles where the authors say that because the 50 day m.a. is well below the 200 day m.a. it belies a weakness in gold at this point. What is your opinion on that. Thanks

    1. MuffinTop

      I think he already said it dude 😐

      The Gold Market is behaving in ways that point to a fundamental shift in its long-term trend, and the evidence continues to mount to support said shift – that’s the long and short of it.

      What you really need to ask yourself is this: Are you one of those Traders who is conditioned to only expect price to fall, basically a Bear? Or.. are you one of those savvy Traders who recognizes the signs and is willing to take a calculated risk? And if not now, then when..?

      You feel me?

      1. Mr. Edge


        LOL. F.Y.I. , I am in the camp that thinks gold is making a fundamental shift here. I was just curious why respected analysts are placing so much weight on the 50/200 day signal

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