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Truth is timeless: “Markets never change” – Jesse Livermore, 1923 The early masters, Livermore, Wyckoff and Loeb isolated themselves from the crowd and crowd thinking. None of them ever graduated high-school and yet they each became legends in the market. Their techniques have been time-tested.... More
  • Market Update: Something Amiss In The Gold Sector 0 comments
    Mar 27, 2014 7:25 AM | about stocks: GOLD

    A report with comments on the precious metals markets from the front page of the Casey Research website may be spot-on as the Brits would say.

    In that report, there was mention of the possibility of one more wash-out type low in the sector..... yet to come.

    If we look at the chart of Randgold Resources Ltd. (NASDAQ:GOLD) as a proxy we see a potentially disturbing picture.

    (click to enlarge)GOLD Daily

    Chart by TeleChart

    The trend-line shown only had two contact points and so was not thought to be sufficiently verified (on the break) to result in an exit of our entire position.

    A down-sloping trend is shown and the cross of the two lines may represent an insurmountable resistance.

    Price action in GOLD has currently set up a divergence as seen on the hourly charts and there may be a bounce up to the apex shown in the chart.

    If there is a rally to test the trend break, it may give off clues that we are in for another down-swing if the rally stops at the location shown.

    The other miners have fallen more sharply than expected as well. Looks like something is not right........

    Disclosure: I am long GOLD.

    Stocks: GOLD
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