 |
| Click on the chart to ENLARGE |
Overnight gold made a new all time high, reaching $1,444.70. Which now begs a very good question. Did the daily cycle really top on Day 22 and bottom the following day, OR, is gold making a stretched daily cycle and still working on making a top (today is Day 25)?
*
If Day 22 was the top, gold would appear to be entering a runaway move. If today or some day soon gold tops then we should expect it to decline to make a daily cycle bottom.
*
The answer? Your guess is as good as mine.
*
In either case, it is upwards we go - continuing today or in a few days.
*
My page Tomorrow's Trades (Today!) has been updated for today's trading session.
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/quotes_special.gif)
Hi John, I am still holding JAG but scratching my head why is continues to stay nears 52wk lows even with gold hitting its highs. What's your take on JAG? Thank you, Jim
ReplyDeleteHi Jim -- I must confess that though I own a considerable number of JAG shares, I have not been following it too closely.
ReplyDeleteI just took a peek at Matlack's most recent data published at Kitco and it still looks good. 2010 earnings per share (.23), 2011E .32, 2012E .61. 2011E PE is 16.7.
Seems there were some disappointing results announced a month ago that has soured the confidence of investors. So this may take some more time. Anyway, as long as the earnings projections remain sound I am content to sit.
Hey John,
ReplyDeleteI'm not very familiar with cycle work and would like to ask you what an extended cycle means? Does it just mean it runs longer than the average cycle day count and will eventually top and fall to a daily cycle low or are there more implications?
Also, whats meant by a runaway move?
Thanks! I really enjoy learning from your site!
Hi Dave, I am pleased you finding things of interest to explore at my site.
ReplyDeleteYes, you understand the extended cycle concept correctly. Whereas gold's daily cycles are usually in the 20-24 day range, a cycle that does not conclude until day 30, for example, would be considered an extended cycle.
A runaway move is one in which the cycles are extremely right translated, which means they peak almost at the very end of the daily cycle, and as such, the 'breather' at the end of the cycle is very brief. The second cycle of the previous intermediate cycle topped and bottomed on the same day (9/28/10) and this is what I think of as a runaway move. There was literally no "buy the dip", in other words.
Thanks for the thorough explanation John
ReplyDelete