Sunday pre-game, 12/9/2012

I'll be traveling over the next two weeks, so a very brief update here. 

Nothing really surprising happened last week in gold, as the important $1695 level held on a closing basis. 

I know Screwtape readers are probably sick of the following monthly chart, but it's been my main moneymaker in 2012 (well, aside from my lucrative gig stripping at bachelorette parties). 

I sold my puts from last week at the bottom of the channel:

With the 300-day moving average (of daily highs) functioning as support yet again, I must say the gold chart looks subtly better to my eyes than it did last week, and I wouldn't be surprised if 2012 closes strong. But I'm squared away for the year and will be sitting it out. 

Both the ^HUI chart from last week and the gold Safe Haven Quotient chart ($GOLD:$CRB) touched their important support points last weeks, and are worth watching.

See you in a few weeks!

This can get ugly!

Parabolic support vs fiscal cliff


Anonymous said...

Hi GM I see you've been having a gay time.

As an ardent follower of your charts cough, cough.
No I mean it. Once an addict etc etc.

Jokes aside can you tell me when it will be OK to plonk some of a "windfall" into Perth Mint "unallocated Gold"

I know you don't give advice but I need a "nod and wink" please.

Slow Loris Larry said...

@ Duggo

Good to see that you have come to your senses, or is it that your subconscious has finally sorted things out for you?

What would your alternatives be for parking your 'windfall', which because of its unexpected nature would seemingly not be needed for any ongoing expenses?

I don't know what your subconscious is telling you about the Aussie stock market, but mine is telling me that it does not at present look like any sort of safe haven (although there are always some promising small mining stocks that you could take a punt on if you are prepared to loose some of your excess capital.

My wife gets 3.25% on a six-month Term Deposit at one of the big four banks, and ordinary savings accounts would earn only a fraction of that.

I suppose that there are bonds or other fixed interest places to park the cash, but they would carry correspondingly more risk.

You have made it clear that your subconscious does not put much faith in technical analysis, and of course much of it is just the visual equivalent of numerology.

However, GM's approach is rather more sophisticated than most, and all five of the charts he has put up on this post show clear long-term positive trends in place for the price of gold.

As I have pointed out before, those trends will only continue until they don't, so they are not telling the fortune of the precious metals. But so long as they do continue, they are telling you that putting your spare cash into Perth Mint unallocated metal is probably about as good a speculation as is available anywhere out there down under here.

And, you can get out and back into cash with a phone call during business hours out there in the 'ass end of the world' as soon as you see any TA signs that the trends may be about to change direction.

So,in my opinion, you should just go for it, now that your subconscious misgivings seem to have disappeared.

Anonymous said...

@ Slow Loris Larry

Sorry to disappoint but there is no chance I will ever come to my senses. I'm still of the opinion that TA is the modern equivalent of astrology.
What I do like is someone like GM who by whatever means is possibly "on a roll" so it's worth taking note. He puts it down to charts because he needs an "explanation".
As for the stock-market I wouldn't touch it with a barge-pole. Why would I be interested in the Aussie stock-market? Did you actually read what I said? As for "deposit accounts" people are nuts to trust banks with their "hard-earned". Bonds are a bubble waiting to pop.
As you quite correctly said " trends will only continue until they don't". You could have also added "the charts will continue to go up until they go sideways or go down".

Still it's nice to see there is someone else reading GM. My subconscious and I were beginning to get lonely.
Screwtapes is still a breath of fresh-air compared to all of those blogs with "Silver" in their names. They all must be panicking along with King World News that all of their prediction about PM Moon shots before the end of the year are not happening.