When Dealing With Gold, Don't Get Confused By The Noise
Eric De Groot | Jul 24, 2017 12:29AM ET
Those that view the message of the market on daily basis are likely confused by trading noise. While trading noise contributes to the long-term trends, it does not define them. Human behavior tries to explain trading noise as a meaningful trend. This confuses the majority which, in turn, contributes to their role as bagholders of trend transitions.
(NYSE:GLD)
Trends
Price and Volume
Down & Up. This pairing defines a bullish divergence within consolidation.
Price and Leverage
Down & Down. This pairing defines an aligned down impulse.
Energy
Q2 DI = 32% defines accumulation within bearish cycle.
Time
Traders do not pursue out-of-alignment trends.
Seasonals
Seasonal strength ends in August.
Conclusion
Consolidation, the misalignment of price and volume, hides steady accumulation that's most likely setting up a rally in 2018. Please join EricDeGrootsInsights for further discussion
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