Posted on 08/20/2009 6:37:30 PM PDT by h20skier66
Everyone is talking about gold shooting to the moon because of the massive reverse head & shoulders pattern forming, not to mention the economy isn't as good as some of us would like it to beJ. I put together this quick report to show the bearish side of things for once.
Bearish Points for Gold & Silver:
* Silver looks to be forming a H&S pattern * Gold made a new high in March and quickly sold off * Gold's neckline is angled up which makes for a weaker breakout if it occurs * The US Dollar looks ready for big rally.
The rest of the article includes great technical trading charts and very specific trading information. Vermeulen is one of the best.
(Excerpt) Read more at commoditynewscenter.com ...
Yeah, trading those Dow and S&P head-and-shoulders chart patterns worked so well a month or so ago...
Any volume information to go with that pattern?
Chartist pattern trading is bs. Post hoc ergo propter hoc falacy all the way. Zero information there, with the slight exception of the bias introduced by the self-reinforcing behavior introduced by the chartists themselves. Modern portfolio theory blew this nonsense out of the water years ago yet it persists.
PATTERNS are SUPERSTITION.
But..But..
His chart looks like the Organ Mountains viewed from N.E. of Las Cruces, NM.
Which clearly shows a valley in gold prices coming next. /sarc.
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