One of the interesting points made by Jim Sinclair in his recent interview with KWN is that technical analysis (TA) has no basis in reality. It is used to manipulate markets and there was a time when if someone said they used TA, they would be laughed out of the room. That’s exactly why people like Larry Edelson do such a huge dis-service to the owners of physical gold. His information may have short-term value for traders, but physical gold and silver are NOT for trading. If you want to “trade” gold and silver, use GLD and SLV. They are paper “investments” that allow you to try and time moves and move in and out. If you think you can out-trade the pros, good luck!
Reality and the major trend (gold and silver in a bull market) will overwhelm the TA people. This is a game of musical chairs, and you really don’t want to be on the sidelines when the market turns up. It may be right now. Once gold starts back up and leaves $1600 behind, the move up could be rapid, as the shorts move over to the long side, as they always do. Edelson’s advice will keep you on the sidelines until gold closes above $1800. He is not a fool, but you will be if you listen to his rants and follow his charts.
If you want to know what is really happening, listen to Jim Sinclair’s discussion with KWN:
Jim Sinclair Interview with King World News
I referenced this interview yesterday, but if you missed it, here it is again and it is required reading – not by me but by your bank account.
Not much more to say today – it’s my birthday (71) and we are going to dinner with friends. And my birthday wish is for a leisurely trip on the Yellow Brick Road.