The CRB index - Back-up Confirmation for Gold and Oil Trades.
It's useful to know which way the greater wind blows before
setting sail. This wind is with the bulls and has been off and
on since June. It's making a nice trend of its own, grinding
away each bear in its path until 195.62 is reached - up about
2.5% from here. Do not consider shorting gold , oil , silver or
copper aggressively until 195.62 is reached on this index, except
near term scalping raids which will carry wiith them all the
risks associated with trading against a trend. Even the deftest
of scalpers will need their A game to make much from
shorting, and will likely have to move fast to bag any profits.
Any bears with a medium term view are going to get crushed.
Can therefore only turn aggressively of Oil once the lower
parallel channelling this impulse wave is broken on downside.
Then you know the greater wind is turning and it's finally time
to change tack and start selling rallies again.
This index has a look of latent strength behind it - 195.62 will
not hold it back for long. Once passed it will rally another 5
points or a firther 2.5% to 203.6. Then look for the wind to
change and at least a 2.5% fall back to 195.6 again. Get this
medium to longer term idea of push and pull and you can
make some very good returns. Good trading to the 3 wise men
who bother to read such arcane research. You will do well.
Never so sure about the rest though...