When it comes to investing, I don’t care much for crowded trains/crowded trades! If an asset class becomes too popular, who else can buy it and drive it higher?
Back in August GLD became the largest ETF in the States, inflows were hitting record levels, Gold was hitting channel resistance and a 30-year Fibonacci extension level was also at hand….this set up of circumstances is why the “Power of the Pattern” suggested to harvest/hedge long Gold positions if conservative, short gold if aggressive the morning of the highs on 8/23 (see post here)
Last week I shared with Premium Members that the train was crowded again in the Gold complex, due to inflows were hitting record levels, while GLD was creating a series of lower highs. Below is an update to the chart sent to Premium members last week…
CLICK ON CHART TO ENLARGE
The vast majority of the time when you have record inflows into an asset and price weakness/a price breakdown is taking place at the same time, that asset should see much lower prices in its future! You can find this inflow chart at Blomberg (see chart here)
GLD is breaking below the flag while inflows are strong….what could happen to GLD if these record inflows turn into record outflows?
9 days ago the “Power of the Pattern” reflected that GLD and SLV were at key resistance and if aggressive this resistance presented a great place to short the metals (See post here)
Tom… support around $150 is there IMHO. If comfortable with being long, go for it with a stop below this line, since the next rising channel support is a large percentage below the $150 level. Do keep in mind the inflows to Gold hit record levels (see post here) and if the inflows would decline, go flat or turn into outflows, that support could give way and GLD could chase lower support rather quickly!
Good luck,
Chris
Kind Chris –
Do you still see support for GLD @ $150.00
I am getting tempted
Bill…
Send and email to this address and we will get you Premium Membership info.
[email protected]
Thanks for your viewership and question,
Chris
LS…
The bottom of a longer-term channel does show support in the area you mentioned.
Chris
Ryan…would need more info, not getting personal nor looking for dollars.
Thanks for the viewership and comment,
Chris
Daxke…
I use Metastock by Equis. If you would like more info send me an email and I will give you a direct contact name and how to achieve a discount off the web price.
Chris
how does one go about becoming a premium member?
Looking at the triangle pattern in GLD, with a high of 185 and the approximate low end of the triangle, from a technical perspective, are we looking for a target somewhere in the 130’s!!!???
Chris,
With a two stock portfolio of DZZ and ZSL, what weightings would you use?
Thanks! Keep the ideas coming.
Hi
Maybe a stupid question but wich program do you use to make the charts.
Thx
Daxke