Gold: Sideways for Awhile?

In my last chart of the day I noted that gold and the metals sector in general were too stretched above the 200 DMA and would likely have to churn for awhile before the next leg up could begin. After seeing the sell off following Friday’s employment number I think I probably called that one correctly. The metals may have to churn sideways for most of August before the next rally begins.

Gold: Sideways

I’m going to go over in detail this weekend what I think the sell off on Friday in the metals means for the sector. Hint: It’s not that bearish.

If there are any of you left that haven’t gotten on board the SMT here is another chance. 10% off the regular annual subscription price good for this weekend only. Buy a regular yearly subscription and I will refund $20.

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    1. ras

      Markets are very complex. Gary’s method is to enter positions at DCL based on his cycle analysis. Sometimes, low point of price may or may not coincide with that at DCL for every stock. It was 5 day up swing after that. With BPGDM at 90, it was not practical for price to deliver a big upswing. So, price needs to go sideways for a while to let other technicals enter the buy zone. Price my or may not go below that at DCL. It could be stock specific. Some may begin to show nascent uptrends against temporary weakness in ag/au. Bottom line is pm stocks are on a major buy signal in the monthly time frame.

      Gary’s cycle analysis worked very well wrt COMPQ. I do not know any other analyst who read the NAS market as well as he did. Yet, my personal preference is to check other indicators, weekly time frames, etc. Learn from everyone, but stick to what works for you.

  1. humbled

    hi Gary does position entry at half cycle lows make sense? Referring to DCs.

    any difference for establishing fresh position entry vs. add-on pyramiding positions?

    Thank you

  2. ras

    Miners delivered a huge up move. It is only natural for a consolidation to take place before the next up move begins. During this backing and filling process, the gap between price and ma’s will have a chance to narrow, bpgdm will have a chance to create overhead room. Also, some pm miners, may sneakily begin nascent up trends, despite weakness in au/ag prices.

  3. tanam

    Hi Garry I am not able to subscribe through visa card from Pakistan. Is there any other method of payment.

    1. Gary Post author

      I only do cc. Do you have a friend that can subscribe for you and then you pay them back?

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