FYI Options

[fib_1618]

The XAU advance/decline line closed at 14 year highs on Friday....the broader based PM advance/decline line is just short of new 3 year highs as well.

Fib

[dougie]

fib: on what sort of time frame does as signal like that work?

[fib_1618]

on what sort of time frame does as signal like that work?

In its simplest terms, the A/D line is a measurement of how much money that's available to be put to work at any given time. Therefore, if this money flow indicator is making higher highs, it instructs us that the short to intermediate term liquidity factor is high enough for prices to trend higher within the basket of stocks from which this information is derived. Given that the XAU A/D line itself at 14 year highs, the longer term condition of the underlying metals themselves (gold and silver primarily) are not likely close to topping out as we would tend to see divergences first before that happens.

So to answer your question, this kind of signal affects all time frames and trading objectives.

Fib

[johngeorge]

fib

Thanks for the information and explanation. Most appreciated.

[dougie]

thanks

[dharma]

interesting , thanks
dharma

[darnelds]

With your points in mind, it's interesting that some PM stocks such as AEM are close to 52-week lows.

[fib_1618]

With your points in mind, it's interesting that some PM stocks such as AEM are close to 52-week lows.

Yes, there will always be issues that don't participate in the broader directional flow of money. In this case, the weak spokes in the XAU wheel are AEM, SSRI, KGC and PAAS but, with the exception of KGC, were the leaders on the last advancing sequence last year.

The leaders this time around...GOLD, CDE, and RGLD.

Moral? One always needs to do their homework and not complacently throw darts at what looks to be an easy target.

Fib

[dharma]

With your points in mind, it's interesting that some PM stocks such as AEM are close to 52-week lows.

Yes, there will always be issues that don't participate in the broader directional flow of money. In this case, the weak spokes in the XAU wheel are AEM, SSRI, KGC and PAAS but, with the exception of KGC, were the leaders on the last advancing sequence last year.

The leaders this time around...GOLD, CDE, and RGLD.

Moral? One always needs to do their homework and not complacently throw darts at what looks to be an easy target.

Fib

well said
dharma

[senorBS]

With your points in mind, it's interesting that some PM stocks such as AEM are close to 52-week lows.

Yes, there will always be issues that don't participate in the broader directional flow of money. In this case, the weak spokes in the XAU wheel are AEM, SSRI, KGC and PAAS but, with the exception of KGC, were the leaders on the last advancing sequence last year.

The leaders this time around...GOLD, CDE, and RGLD.

Moral? One always needs to do their homework and not complacently throw darts at what looks to be an easy target.

Fib

and since are are at importante support Senor just did some gold and silver stock and ETF buying here with tight stops.

NO BS

Senor

This post has been edited by senorBS: Nov 18 2011, 10:23 AM