~*~Mining and Metals Du Jour~*~

[MysticTrailblazer20]

Hi with IV board in a total shambles I am going to post an Precious Metals Oscillator (gold) developed by ChuckKrew and for many years since his passing I've expanded the oscillators to include Silver and a MACD plot. When you click on the URL it does take a little while for the images to be created from a master system. All pricing comes from Google Finance. My alias at IV is RiddellFool but unless someone can give he a heads up on how to change I'm now MysticTrailblazer20 (whatever happened to the other 19?)

Gold and Silver Oscillators March 12

This is an explanation of how the plots are created from a database of 36 Gold or
Silver companies ranging from Majors to Juniors and the odd EFT.

Each day after market close the database is updated and scanned to determine how
many of the stocks are above their 50 day simple moving average. Each day's answer
is used to recalculate a 20 day simple moving average for the tally of stocks closing
above their 50 day simple moving average. That is the red line you see on the chart.
When the red line gets over 9 and starts up again, I use it as a low risk intermediate
term entry point into gold stocks that I like. When the red line gets over 26, I become
cautious and start thinking whether to sell out, sell calls, or do nothing.
.
The theory is that it takes a lot of selling to put at least 26 stocks of a 36 stock database
from the same sector under their 50 day simple moving average and keep them there
long enough for a 20 day simple moving average to drop below 9 and a lot of buying
for it then to rise up to 26 on the same 20 day basis It's purely sentiment, a measure
of fear and greed. Strangely, the most difficult thing to do is buy when the sentiment is
low, even though history shows time and again that the selling will stop soon. For me
the key is: be sure the sector is in a bull market and wait for that 20 day simple moving
average to start back up. That means that many of the stocks have stopped falling.
.
No indicator is foolproof. This one is no different and should be used in conjunction
with other indicators like MACD, RSI, and Stochs combined with some common sense.