Monday, November 24, 2003 11:39:32 PM
goldheart indicator updated, a new paradigm...??
http://www.gold-eagle.com/charts/goldheart.html
Current Interpretation: We are still searching for a bottom in the triple bottom move of the MT indicator. The character of this MT move has no precedent since the birth of the bull. During the first cycle move from 1/02-6/02 we registered a unique overbought double bottom in the MT indicator. Now we are going for a least three. All this occurs while the LT indicator tries to find its bottom, also in overbought territory.
If you look at the Gold plot below you can see that several reversals have occurred in the MT and LT indicators during this bottoming process. Reversals defined as inflection points in the wave bottoming profile. However, when you step back from the daily moves in these waves you see that both the MT and LT waves are clearly trending deeper into overbought territory. This would signal that final turns in these indicators still lie ahead, and our Gold and Silver bull continues for the present.
We can never know when a final turn is final, since it always lies behind that dark curtain of the future. We can however know when we are overbought relative to "past" prices, but when expected corrections refuse to correct we must begin asking the question of whether we are sensing some transition in share price action. Any new paradigm would take longer to register on GoldHeart waves.
Certainly, Gold investor psychology continues to develop deeper roots. At the same time new investors are attracted to the obvious Gold and Silver share price growth. We might expect these new factors to change the character of GoldHeart waves as a new paradigm develops. Expected minor corrections may now be seized as buying opportunities. We may find that as we progress along the Gold Bull Hwy that overbought turns now become complex triple, quadruple, etc. bottoms refusing to quite. They may become only temporary interruptions that break the stride of Gold and result in sideways consolidation. We may find it takes a final exhaustion of the LT wave to indicate that the new tempo of Gold is ready for a breather. Time will tell.
We do however know that there is no crystal ball to predict the future. GoldHeart waves only provide a sense of reference to "past" price action with good correlation to market turns. New paradigms governed by new rules take time to register due to learning associated with new price patterns. We do however sense the possibility of that new forces may be at work and that there may be some logical basis for a new paradigm. Time will tell.
Regardless of overbought conditions or a new Gold paradigm our "obvious" trends are clear. Let's go with the obvious here. Gold and Silver are in bull markets. This is clearly indicated on the plot trend lines below. Continue to build and hold core positions while using GoldHeart signals as a good tool for timing new purchases and switches. Talk soon, GoldHeart (November 24, 2003)
http://www.gold-eagle.com/charts/goldheart.html
Current Interpretation: We are still searching for a bottom in the triple bottom move of the MT indicator. The character of this MT move has no precedent since the birth of the bull. During the first cycle move from 1/02-6/02 we registered a unique overbought double bottom in the MT indicator. Now we are going for a least three. All this occurs while the LT indicator tries to find its bottom, also in overbought territory.
If you look at the Gold plot below you can see that several reversals have occurred in the MT and LT indicators during this bottoming process. Reversals defined as inflection points in the wave bottoming profile. However, when you step back from the daily moves in these waves you see that both the MT and LT waves are clearly trending deeper into overbought territory. This would signal that final turns in these indicators still lie ahead, and our Gold and Silver bull continues for the present.
We can never know when a final turn is final, since it always lies behind that dark curtain of the future. We can however know when we are overbought relative to "past" prices, but when expected corrections refuse to correct we must begin asking the question of whether we are sensing some transition in share price action. Any new paradigm would take longer to register on GoldHeart waves.
Certainly, Gold investor psychology continues to develop deeper roots. At the same time new investors are attracted to the obvious Gold and Silver share price growth. We might expect these new factors to change the character of GoldHeart waves as a new paradigm develops. Expected minor corrections may now be seized as buying opportunities. We may find that as we progress along the Gold Bull Hwy that overbought turns now become complex triple, quadruple, etc. bottoms refusing to quite. They may become only temporary interruptions that break the stride of Gold and result in sideways consolidation. We may find it takes a final exhaustion of the LT wave to indicate that the new tempo of Gold is ready for a breather. Time will tell.
We do however know that there is no crystal ball to predict the future. GoldHeart waves only provide a sense of reference to "past" price action with good correlation to market turns. New paradigms governed by new rules take time to register due to learning associated with new price patterns. We do however sense the possibility of that new forces may be at work and that there may be some logical basis for a new paradigm. Time will tell.
Regardless of overbought conditions or a new Gold paradigm our "obvious" trends are clear. Let's go with the obvious here. Gold and Silver are in bull markets. This is clearly indicated on the plot trend lines below. Continue to build and hold core positions while using GoldHeart signals as a good tool for timing new purchases and switches. Talk soon, GoldHeart (November 24, 2003)
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