Tuesday, August 9, 2011

Sold GBG - $1.84 BUY DZZ - $4.96 -- Golds D Wave Retracements

I decided to sell my position in Great Basin Gold (GBG) at $1.84 and recognize an ouchy 13.2% loss. With the same money, I purchased a long position DB Gold Double Short ETN (DZZ) at $4.96. In effect, I traded one position for another.
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Click on any chart to ENLARGE
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I will continue to hold my losing position in TNA in hopes we get at least a decent retracement in the near future.
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Gold is presently trading at around $1750. It clearly seems to have entered into a parabolic phase which I am presuming means it is about to top. In any event, if we get a parabolic conclusion then the D wave will begin.
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Here is a look at the first 4 C-wave tops of gold's secular bull market with an eye to identify Fibonacci retracement levels accomplished during the ensuing D-waves.

















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And here is a look at the 2006, 2008 and potentially 2011 C-wave tops with Fibonacci retracement levels.































































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DZZ currently trades a short ways under $5. At the beginning of the current C-wave (April 2009) DZZ traded at $25. I imagine that whenever this C-wave does top, DZZ will retrace some territory back in the direction of $25 and I expect it to outperform GBG in the long run, which is why I traded those positions today.

My TSI Trading record has been updated.


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5 comments:

  1. comatAugust 9, 2011 at 3:46 PM

    Hi John,How about silver,if gold drop will silver follow or silver still need another parabolic bounce before crash? Thanks a lot

    ReplyDelete
  2. AnonymousAugust 9, 2011 at 5:09 PM

    Hi John,
    As usual you did an impressive job by providing us with the charts of the gold waves that mattered in the last ten years, Please can you elaborate how you pinpoint the "zero percent line" in 2001, where the top is not yet reached?
    Thank you in advance.
    Guus

    ReplyDelete
  3. AnonymousAugust 9, 2011 at 5:18 PM

    I see that I typed '2001' in stead of '2011'; sorry! Guus

    ReplyDelete
  4. TracyAugust 9, 2011 at 10:44 PM

    Thanks John,


    YOU ROCK !

    Excellent piece of knowledge for beginners.

    ReplyDelete
  5. TSI StudentAugust 9, 2011 at 11:53 PM

    Hi, John,

    Excellent work as usual. An interesting price change about DZZ, before the begin of this GOLD C Wave, DZZ had two obvious daily circles in 2009, then it went all the way down till now. Some ETFs related to GOLD such as NUGT and DUST, both of them had two daily circles after coming to the market. Is there any chance that one of them goes all the way down like DZZ and the other goes all the way up like DGP?

    Thank you very much.

    ReplyDelete

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