Gold in the futures market has already started to show strength. GLD traders such as myself are sitting on the sidelines, and waiting for our turn in the morning. If it is a valid move then other entries are likely to show up on GLD or GDX. Gringo
GDX has shown strength. This for me signals a long. To increase the leverage a bit I have chosen NUGT for the long, which is 3x GDX. Gringo
Went long GLD just a little last week. Will hold as long as metal price stays above 1200 for now. Will see if an up line develops.
What does it mean if it is on low volume? How about a high volume stop run? How do you interpret volume? I only use it to see when the market is awake, and to notice abnormal surges and spikes. Am I missing something?
DB can give you the best interpretation, as with anything else related to the Wyckoff method. Thursday there was an increased interest in higher prices, more buyers came in having to bid higher prices to get filled. Friday buyers were reluctant towards paying higher prices, so sellers had to offer at a discount. However, there was less of them. The end result is that, as things stand, there is less buyers and sellers interested in lower prices.
Thanks tupapa, My post was only to elicit the concepts upon which his views were based.. I am in DB's camp regarding volume. At least I think I am. Volume spikes with no follow through catch my attention, otherwise I am just a price bar man.
Employing volume for analysis is no different from employing Playboy Bunnies for waitressing. Neither are entirely wasteful, and some can make better use of them than others. Gringo
Price dropped a bit but the drop wasn't anything to cause much concern. I am willing to give some breathing room to price after this upside move. Price doesn't doesn't just move in a straight line. Strangely NUGT dropped for the day, but GLD went up for the day. What's up with this disparity? In any case, we'll see what happens come the morning. So far price hasn't been overwhelmed by supply. If it is a true trend change then it will find its footing sooner or later, otherwise it will just fizzle away. It could go as far as up to the 50% mark before fizzling. That we would be around 42. We really don't know what is yet to come. Price could turn down whenever it wishes. Gringo