Tuesday, November 03, 2009


The above Daily chart of GLD provides some precautionary hints against jumping on the Gold bandwagon right now. The software is counting 5 waves up along with a divergence on the Elliott Oscillator (annotated above). In addition, the False Bar Stochastic is just a few days away from a Sell Signal setup.

On the other hand, the only argument left is the only one that really matters, GLD is clearly in an uptrend. Bullish on Gold, but on guard for a change-in-trend.



Wayne said...

Speaking of gold:

Armageddon approaching?


Anonymous said...

Hi Allan,

Would you be kind enough to give a brief overview on the False Bar Stochastic? How is this different from the standard Stochastic built in to many chart packages?


Anonymous said...

I've just been whipsawed for the last time. My own fault.

Anonymous said...


While most analysis are forecasting a lower dollar, Robert Prechter is convinced the dollar is heading higher while the market sinks to new lows. This because these 2 markets have been contra cyclical during all this turmoil.

I would very much like to get your take on this (along with where we stand in the larger wave sequence).

And if the dollar is heading higher in your view besides shorting the market would going long bonds and treasuries make sense?

Thanks Tom/NJ