Tuesday, February 2, 2016

Gold Stocks Are Conforming to The 1986, 1992, 2000 and 2008 Lows

The trade has been perfect.  In this weekend’s video, I show the charts of the bottoming formations at the 1986, 1992, 2000 and 2008 lows.  In each instance spikes up occurred after final lows (+30%, +30%, +51% and +15%).  Thus far we have advanced 22%. The 1986 and 2000 markets are the closest fit bear markets to ours.  Each advanced 30% during these short-lived but violent rallies which would project to 129.00.

It is important to note that once these flurries to the upside were complete, sharp but very short-lived sell-offs occurred.    In 1986 and 2000, both markets retraced 56%.  If we were to replicate this pattern, our market will give back half of whatever the ultimate gain is.  This will be another excellent buying zone.

Reward-risk multiples?  I start this video by showing how the bull markets unfolded once final lows were in place and what the implications of this are on profitable investment and speculative positions.   Click on image for video.
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