It is always good to have a plan. Even better if you have a way to stick to it. Nasdaq has taken quite a beating and people who are worried about inflation, stagflation, recession and depression want to know what to do. Well, I can't give financial advice to others, but I can plan for myself. Gold hasn't moved a lot and that has some people concerned. I think the move is just beginning and a look at higher time frames will show that.
Simple candlestick analysis on the Gold/Nasdaq pair shows that we closed the 4 month period with a banger with the candle engulfing two whole periods and almost a third. This is a very strong indicator that the trend has shifted and resembles the trend shift in late 2000. From 2000 to 2008 gold was the clear outperformer with an initial impuse then a multi-year cup and handle formation taking the pair to a high in late 2008/early 2009. From there a few years of sideways topping action and then the price action shows rotation out of gold into the Nasdaq.
Gold/NDX Indicators
The Pair price action has dropped way below the Keltner and Gaussian chanel and I have been waiting for a sign that shows the momentum has shifted and the candle stick analysis suggests. The chart below details the bullishness I see and I won't repeat myself here. I do expect another multi-year consolidation pattern on the pair but it is still much to early to tell what to expect. I do expect a couple of periods of impulse to the bottom of the gaussian channel.
My strategy
A look at this chart suggest that a BTFD strategy will work so long as traders and investors switch the dip they are buying from equities into gold or other miners. I generally expect gold to run first, then silver.
A look back from 2000 to 2010 does seem to show a simple strategy on this weekly chart does seem to be to buy every breakout of multi-month or multi-year resistance or to simply accumulate at the lows of the Keltner channel and certainly buy the Gaussian channel.
Based on that I will be looking for the gold price to get above the resistance charted below. Failure to get above that trendline would be a theory failure, meaning that rather than gold and Nasdaq going separate directions for a while then gold outperforming as they both tend upwards that Gold would merely be going down less than the Nasdaq. In that case I will just wait for cheaper prices.
Simple candlestick analysis on the Gold/Nasdaq pair shows that we closed the 4 month period with a banger with the candle engulfing two whole periods and almost a third. This is a very strong indicator that the trend has shifted and resembles the trend shift in late 2000. From 2000 to 2008 gold was the clear outperformer with an initial impuse then a multi-year cup and handle formation taking the pair to a high in late 2008/early 2009. From there a few years of sideways topping action and then the price action shows rotation out of gold into the Nasdaq.
Gold/NDX Indicators
The Pair price action has dropped way below the Keltner and Gaussian chanel and I have been waiting for a sign that shows the momentum has shifted and the candle stick analysis suggests. The chart below details the bullishness I see and I won't repeat myself here. I do expect another multi-year consolidation pattern on the pair but it is still much to early to tell what to expect. I do expect a couple of periods of impulse to the bottom of the gaussian channel.
My strategy
A look at this chart suggest that a BTFD strategy will work so long as traders and investors switch the dip they are buying from equities into gold or other miners. I generally expect gold to run first, then silver.
A look back from 2000 to 2010 does seem to show a simple strategy on this weekly chart does seem to be to buy every breakout of multi-month or multi-year resistance or to simply accumulate at the lows of the Keltner channel and certainly buy the Gaussian channel.
Based on that I will be looking for the gold price to get above the resistance charted below. Failure to get above that trendline would be a theory failure, meaning that rather than gold and Nasdaq going separate directions for a while then gold outperforming as they both tend upwards that Gold would merely be going down less than the Nasdaq. In that case I will just wait for cheaper prices.
And I promise every Floridian that you will all be rich... because we're gonna print some more money! Why didn't anybody ever think of this before?
~Nathan Explosion
~Nathan Explosion