Financial, Real Estate, Stock Markets Trends and Current Affairs

key word: Patience

Hello BoomBustBloggers! Eurocalypse here to share a few thoughts about the market. I'd like to open this post with a much loved topic among the blogosphere and its readers, aka gold.

I'm sure I received quite a lot of scorn and criticism when I said that Gold was NOT a no-brainer buy for the LT (see past Eurocalypse commentary), and to avoid buying it when it was in the high 1700. Of course, it did squeeze more to 1900$, but I think the price action demonstrated that I was basically right, that there was a lot of speculative longs, and that Gold (denominated in USD) IS correlated to the USD index, more than the stock market.

Well I also said the objective for a retracement was the monthly moving average low 1600s, high 1500s so here is how the charts looks now (click an graphic to enlarge).

20110927_-_Gold_Monthly

Oh! I like very much that candle touching the MA and bouncing there just after. We can zoom on the weekly and daily charts to see better what happened...

20110927_-_Gold_Weekly

We touched the Bollinger low on the weekly. I'd say that was a double reason to buy at that level, together with the monthly MA level. That was a fantastic buy opportunity for the patient and opportunistic trader.

20110927_-_Gold_Daily

Subscribers (click here to subscribe) can download the entire 6 page commentary (which is quite interesting) as well as recommendations on winding down the profitable SPY pair/fly trades here Trading Tips Sep 27th 2011.