5 replies to this topic

[Mike]

Following are my gold:xau ratio and related xau charts. I've simplified the ratio chart since the last posting making it much clearer to look at. It shows we're now back in the buy zone for the third time this year. While the chart shows you can buy anytime the ratio line goes above the signal line, another way to use it is to hold off until the line reverses and passes down through the signal level. Yet another way would be to scale in with multiple buys as long as the ratio line stays above the signal line. We all make our own decisions based on our own interpretation of current conditions. Be sure to use the ratio chart with the xau chart below it.
-MK

http://stockcharts.com/c-sc/sc?s=$GOLD:$XAU&p=D&st=2000-06-01&i=p34047920879&a=132381513&r=572.png
http://stockcharts.com/c-sc/sc?s=$XAU&p=D&st=2000-06-01&i=p91436325028&a=37652825&r=53.png

[Tor]

lovely charts and thanks for sharing them.

[dougie]

wish that red zone were more accurate

[Mike]

wish that red zone were more accurate

I'll see what I can do... Actually, one might want to hold and not sell gold, but buy/sell the stocks on the signals.
-MK

[Islander]

Another alternative is "do nothing" based on seasonality. I am keeping a core position for black swans. Yes, they do exist. Best, Islander

Edited by Islander, 30 April 2008 - 02:19 PM.

[johngeorge]

Mike Just noticed you posted the buy/sell ratio chart again. Looks easier to read and has been accurate. Thank you for continued sharing and good trading to you. Best to you.