Saturday, January 29, 2011

Gold watch 01-29

What is going on with gold?  Took a look at PHYS and did some projections. First I started with the Money Flow Index daily. I drew a line at the Jul 21 low on the MFI. Then I selected the peak at Oct 13. Then I drew a third line equal the distance Jul 21-Oct 13 as a pivot projection. As you can see that fell at Jan 7 ( a short term low). This illustrates the ability of MFI to project into the future.

I then did a weekly MFI chart for PHYS. I selected the MFI low at week ending Sep 17 to draw a line. Then I drew a line at MFI top week ending Dec 30. Then I projected an equidistant the Sep 17-Dec 30 span from Dec 30 into the future to week ending Apr 1. This is a projected pivot point for PHYS.

Finally I looked at the cycles (and projected the dominant cycles into the future). As you will see this projects cycle bottoms into the Apr 1-Apr 8 time frame. So the expected pivot in early April should be a bottom.

Time will tell if these projections work out, but two different approaches project the same time frame for a pivot (bottom). Thought you would want to add this information to your data points when considering investments in gold.

GL traders.  Be sure to do your own analysis.


  1. Gracias mi amigo and I will HOPE they pull off this bottom PP....if they do then it will be a wonderful trade...

  2. Kli - I was unaware of Kass's comments on gold. Interesting.