Wednesday
Jan052011
Gold Breaks 50-Day Moving Average
Wednesday, January 5, 2011 at 09:33AM 
For the first time in 100 trading days, the price of gold (using the front month futures contract) dropped below its 50-day moving average. This ends the third longest streak of trading above its 50-day that the commodity has had since 2000. The prior two streaks eneded back in 2002 (124 trading days) and 2008 (143 trading days). As shown in the charts below, in each of those periods the price of gold took some time before rebounding to prior highs.
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Reader Comments (6)
It would be interesting to compare the techicals to the fundamentals, like debt to GDP from 2002 to 2011 (actual and projected).
you have to be kiding .... the market in gold is accelerating ... sheesh correction are much shorter
I believe you are right but just using the 50 day average is really not enough to say for sure. First, stochastics is not done going down and neither is RSI. Also there is a strong trading range from about 1370 and 1425. The price will probably stabilize between 1350 and 1370. Also a lot of 'stopper' volume is coming in here caused by buyers stopping the fall because they are looking for a bargain. If a sideways trading pattern is to continue, it will take a lot of buying to keep that going. I don't think that will happen from what I see at this point in time.
http://stockcharts.com/h-sc/ui?s=$GOLD&p=D&b=5&g=0&id=p92350006552
I'M SURE MOST ALL OF THESE GUYS MAKE MORE MONEY THAN I. MOST I'M NOT FAMILAR WITH--JEFF SAUT I AM. HAB A REPORT OF THE TOP 1OO HEDGE FUND MANGERS THIS A.M.----I WAS SHOCKED TO LEARN I HAC BEAT EM ALL FOE 2011. I MEAN SHOCKED! IN THE PAST I'VE HAD MANAGED ACCTS. W/ R.J.F.-& OTHERS. FOE THE ODDEST REASON I AM ABLE TO DO RHINGS MYSELF, THROUGH A DISCOUNT BROKER & OUT DO EVERY MANAGED ACCT I'VE EVER HAD! ONE EXCEPTION--R.J.F.--IN THE EARLY 80"S! THE INDUVIAL HANDELING THE ACC. AT RJF HAS SINCE DIED--THEY HAVE NOT REPEATED HIS PERFORMANCE SINCE! I NEVER EVEN FINSHED HIGH SCHOOL, SO YOURE WELCOME TO QUIT READING NOW!! 35 YRS. IN THE RETAIL FRUIT & VEGTABLE BUSINEDD! MEANING I FULLY UNDERSTAND THE FORCES OF SUPPLY & DEMAND! IF A DUMB ASSED FRUIT PEDLER CAN BEAT THE TOP 100 HEDGE MANGRS. THAY SAYS WHAT ABOUT MANAGED ACCTS., MUTUAL FUNDS, OR E.T.F.S.? I'M SURE I JUST GOT LUCKY!! IF ANY OF YOU HAPPEN TO WATCH "STOSSEL" ON FOX BUS..THE OTHER NIGHT HE SPOKE ON PRO. MON. MANG.--QUITE INTERESTING!!! HE PUT THE STOCK PGS. FROM THE W.S.J. ON THE WALL STOOD BACK & THREW A DART AT 30 STOCKS. THE 30 HE STUCK ON BEAT ALL MAJOR AVGS. BY AT LEAST 4%! HELLO!! ARE YOU HOME??? USE THE DAMN DARTS & $1.50 FOR A W.S.J.,!!! AND YOU SHALL BE PROSPEROUS!!! JUST READ THE COMMENTS SENT TO MODERATOR, SEE, I HAVE JUST Wasted 15 min. writing this dumb statement!! Douglas G. Waite
AT THE RISK OF PISSING OFF YOUR PAID ADV.. & AT THIS TIME BECAUSE THE CHART BROKE THE MOVING AVE. WE SHOULD SELL??? SEEMS TO ME THAT THIS PICTURE HAS BEEN PAINTED WITH A DIFFERENT BRUSH!! PERSONALLY DO NOT THINK IT WILL FOLLOW TRADIONATIONAL PATTERNS!! THEYLL BE QUOTEING THE SAME CHART 50 YRS. FROM NOW--& SAYING"WITH ONE EXCEPTION" --!! SEEMS LIKE I'VE HEARD THAT BEFORE. THEYLL GET MY GOLD & SILVER WHEN THEY PRY MY COLD DEAD HANDS OFF MY .357!!!! (OR .44) YALL HAVE A WONDERFULL NEW YEAR!!!
The lower the price of gold goes, the more we should buy. That's what I've been doing for years, and this:
#1: improves overall performance
#2: assures i catch every upside move
I shall continue to stay ALMOST "all in" (90% ~ 95%).