1 reply to this topic

[Woody]

Truckers and Rails whose livelihood depends on hauling commodities are now breaking down; also the DB Commodity tracking index looks like it has started wave (i) down of Wave 3 While I expect the Rails and Truckers to kissback their 200 ema's, all of this does not support a sustainable Gold Rally and I suspect that Bullion Traders are looking beyond the current liquidity crisis These Intermarket relationships are worth paying attention to when analysing specific Commodities----these things tend to move in groups There has been some discussion about Gold entering into a "parabolic" phase...... by definition, Gold's price action over the last say 5 years can be defined as a parabola......the question then becomes how do you know when the parabolic is "broken" I dont know the answer but eyeballing the longer term chart, makes me think its done. I am a trader and in Cash right now and not predisposed to one side or the other, nothing goes in a straight line so a lower low in Gold will likely make a good IT buying opportunity, my target remains $650

Edited by Woody, 02 October 2008 - 01:25 PM.

[hiker]

thanks, Woody. looks like $650 represents the general area of the prior base, depending on which period of the base

Edited by hiker, 02 October 2008 - 02:32 PM.