Futures Market - Gold Highlight #1
Lowest gold price of the last 15 years occurs 1 day after "DIVERGENCE OF THE YEAR" projection.
(COMMENT #s 9, 27 [#11])
UPDATED 19980105
COMMENT 1998-9
All purchasers should turn to the "DIVERGENCE OF THE YEAR" on page 279 of "The 1998 $upertrader's Almanac - 1st Half Edition".
1. The scenario anticipated for the beginning of the year is occurring RIGHT NOW!
2. The weekly DIVERGENCES shown on page 279 of "The 1998 $upertrader's Almanac - 1st Half Edition" against the February lows are still in effect (also refer to pages 171-184 of "The $upertrader's Reference Manual").
3. The DIVERGENCES against the July lows are also in effect on daily charts.
4. The DIVERGENCES against the December lows are also in effect on daily charts.
5. It would be more bullish if this market first broke the lows of the last 15 years or so. The towels would come out of the hamper!
6. Note that, as these price extremes are being made, they are occurring RIGHT EXACTLY ON the LARGEST monthly "Inversion Cycle Index" value of the year (see page 347 of "The $upertrader's Book of Linear Time Cycles").
7. Note that the same magnitude also exists in the weekly "Inversion Cycle Index" values (see page 349 of "The $upertrader's Book of Linear Time Cycles").
8. Note that this market is DIVERGING with the other markets in the complex (see pages 171-184 of "The $upertrader's Reference Manual").
9. Note how the last monthly/weekly "Inversion Cycle" ALIGNMENT nailed the July MAJOR TURN EXACTLY!
10. Traders should be particularly sensitive to market reversals to the upside in this market and should employ approaches that provide long entry with tight stops against recent highs.
11. The very short term trading system presented on pages 96-101 of "The $upertrader's Almanac - Reference Manual" is such a "system" and can be used on either daily or intra-day charts.
12. A close above the open over the next few days will cause a "white" candlestick which should be sufficient to provide a short term entry signal.
13. The system presented in pages 205-209 of "The $upertrader's Almanac - Reference Manual" is particularly suitable for this market at this time as is the "ALMANAC II" trading system presented in "The 1996 $upertrader's Almanac - 2nd Half Edition). Note that the same pattern applies to the hourly chart which reduces risk and provides for tighter stops.
14. The reader should observe that trading is simply the process of identifying a number of situations such as this one that have a chance of working out quite well if the analysis is correct but which involve very little risk to capital if wrong.
UPDATED 19980115
COMMENT 1998-27 [#11]
11. Note how we have just this week barely broken, in the spot February contract, the late 1994 spot contract low at 1642 and the 1995 low at 1660. Remember the gold discussion regarding these false breakouts (see COMMENT 1998-9, #5).
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