Replies to post #34010 on Abet Chichi2 (Chichi2)

[Myself °¿°]

USD snapshot

[Myself °¿°]

GTU snapshot


>>Another gold sentiment indicator is Central Gold Trust (GTU). It is a closed-end mutual fund, which means that it trades like a stock on the NYSE. The fund owns only gold -- the metal, not stocks. Closed-end funds trade based upon the bid and ask, without regard to their net asset value (NAV). Because of this, they can trade at a price that is at a premium or discount to their NAV. By tracking the premium or discount we can get an idea of bullish or bearish sentiment regarding gold.<<

[DiscoverGold]

RALLY FAILURE by Carl Swenlin - January 16, 2009


In my January 2 article I pointed out that the stock market was overbought by bear market standards, but that the rally had plenty of internal room for prices to expand upward if bullish forces were to persist. There was a brief rally and a small breakout, but then the rally failed, breaking down from an ascending wedge formation. I wasn't really expecting a bullish resolution, but one must keep an open mind when appropriate conditions appear.

On the chart below you can see the short-term declining tops line through which the breakout occurred. Instead of a buying opportunity, it was a bull trap. At this point we must assume that the November low will be tested. Note also that the PMO has crossed down through its 10-EMA, generating a sell signal.



For detailed charts and extensive commentary:

http://www.decisionpoint.com/ChartSpotliteFiles/090116_rf.html

George.

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