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TFC Commodity Trading Forum

Gold Stks/GLD/Overlays/Haligonian *LINK*

Here is the ABX chart again with the Junior Gold stock ETF:GDXJ and the Major Gold stock ETF:GDX overlaid along with the GOLD ETF:GLD. What I didn't mention which is obvious is notice how the stocks do not track Gold step for step. And we know with ratio charts the Gold stocks have been underperforming Gold for years now. Some theorize that with the Gold ETf:GLD and others that allow traders/investors to own the pure Gold, the stocks are now just stocks with the same problems that other stock companies have so are not as desirable. If so it is understandable that the Gold stocks would consistently underperform Gold and Gold ETFs. But that has doesn't stop us from trading and making money with the Gold stocks. It just lets us know it isn't as easy as it once was. What this chart shows is how ABX has a higher beta than the Gold ETFs and Gold as well. But unlike most Gold stocks is the highest profile Gold stock out there and a major component of the major Gold stock ETF. See on the run ups ABX soar above the others. And on selloffs ABX sells off faster and harder than the others. A high beta trade is a good money maker but does force one to be more nimble on exits. What does help with the timing is notice the CCI 20 indicator. And see the vertical dotted lines at the ABX lows which basically match up with the other stock ETF lows too. Look for this indicator to fall below -100 in the colored zone and then come back up over this level at price lows. Not the holy grail for exact timing but it does give a good heads up on a price reversal. And postive divergences also increase the timing at these pts as well. Negative divergences on the tops are also a good warning of a loss of momentum and a selloff "nearby". It is a good indicator with a valuable track record in most markets. (See link attached)

Messages In This Thread

Gold Stks/GLD/Overlays/Haligonian *LINK*
Re: Gold Stks/GLD/Overlays/Haligonian