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Monday, January 28, 2013

Patience and Time

As Kevin reminds us,  “The two most powerful warriors are patience and time.”

A growing number of emails raising concerns that something has changed in the gold market.  Since the no material deviations, changes, or inconsistencies can be observed within the analysis below (chart), I can only respond that the probabilities don't favor it.

While a break of the May 2012 lows would suggest a D-wave continuation, it would be highly unusual. Once bullish DI readings (>60%), usually clustered, are followed by bearish readings (<-60%), the D-wave has ended.

Chart:  Gold London P.M Fixed and Gold Diffusion Index (DI)



The ebb and flo as described in the above analysis (ABCD labeling system) will fail to anticipate future direction at some point in the secular bull.   When that happens, gold will likely be accelerating to the upside.



Eric,

Here is a great heading for you to use someday on your blog from Tolstoy’s novel, “War and Peace:”

“The two most powerful warriors are patience and time.”

Seems appropriate, doesn’t it?

Kevin




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