Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
UK Corona Catastrophe Trend Analysis - 2nd Jun 20
US Real Estate Stats Show Big Wave Of Refinancing Is Coming - 2nd Jun 20
Let’s Make Sure This Crisis Doesn’t Go to Waste - 2nd Jun 20
Silver and Gold: Balancing More Than 100 Years Of Debt Abuse - 2nd Jun 20
The importance of effective website design in a business marketing strategy - 2nd Jun 20
AI Mega-trend Tech Stocks Buying Levels Q2 2020 - 1st Jun 20
M2 Velocity Collapses – Could A Bottom In Capital Velocity Be Setting Up? - 1st Jun 20
The Inflation–Deflation Conundrum - 1st Jun 20
AMD 3900XT, 3800XT, 3600XT Refresh Means Zen 3 4000 AMD CPU's Delayed for 5nm Until 2021? - 1st Jun 20
Why Multi-Asset Brokers Like TRADE.com are the Future of Trading - 1st Jun 20
Will Fed‘s Cap On Interest Rates Trigger Gold’s Rally? - 30th May
Is Stock Market Setting Up for a Blow-Off Top? - 29th May 20
Strong Signs In The Mobile Gaming Market - 29th May 20
Last Clap for NHS and Carers, Sheffield UK - 29th May 20
The AI Mega-trend Stocks Investing - When to Sell? - 28th May 20
Trump vs. Biden: What’s at Stake for Precious Metals Investors? - 28th May 20
Stocks: What to Make of the Day-Trading Frenzy - 28th May 20
Why You’ll Never Get Another Stimulus Check - 28th May 20
Implications for Gold – 2007-9 Great Recession vs. 2020 Coronavirus Crisis - 28th May 20
Ray Dalio Suggests USA Is Entering A Period Of Economic Decline And New World Order - 28th May 20
Europe’s Coronavirus Pandemic Dilemma - 28th May 20
I Can't Pay My Payday Loans What Will Happen - 28th May 20
Predictive Modeling Suggests US Stock Markets 12% Over Valued - 27th May 20
Why Stocks Bear Market Rallies Are So Tricky - 27th May 20
Precious Metals Hit Resistance - 27th May 20
Crude Oil Cuts Get Another Saudi Boost as Oil Demand Begins to Show Signs of Life - 27th May 20
Where the Markets are heading after COVID-19? - 27th May 20
Silver Springboards Higher – What’s Next? - 26th May 20
Stock Market Key Resistance Breakout Is Where the Rubber Meets the Road - 26th May 20
5 Ways To Amp Up Your CFD Trading Today - 26th May 20
The Anatomy of a Gold Stock Bull Market - 26th May 20
Stock Market Critical Price Level Could Soon Prompt A Big Move - 25th May 20
Will Powell Decouple Gold from the Stock Market? - 25th May 20
How Muslims Celebrated EID in Lockdown Britain 2020 - UK - 25th May 20
Stock Market Topping Behavior - 24th May 20
Fed Action Accelerates Boom-Bust Cycle; Not A Virus Crisis - 23rd May 20
Gold Silver Miners and Stocks (after a quick drop) Ready to Explode - 23rd May 20
3 Ways to Prepare Financially for Retirement - 23rd May 20
4 Essential Car Trade-In Tips To Get The Best Value - 23rd May 20
Budgie Heaven at Bird Land - 23rd May 20

Market Oracle FREE Newsletter

Coronavirus-stocks-bear-market-2020-analysis

Gold - The Weight of Time as Trend

Commodities / Gold and Silver 2014 Dec 15, 2014 - 05:31 AM GMT

By: Submissions

Commodities

George R Harrison writes: We’ve all felt it. The ‘weight’ of time acting as Trends in the markets.

Trends that hold longer than expected and whose change in direction appears when we least expect or believe it.

Once time accumulates for an action and establishes a Trend, those trends take a lot of work to change.


It seems like the more time that passes after a task is done and energy has been spent, the harder it is to go back to revisit those tasks again.

It’s like getting motivated to mow the lawn after we’ve done it recently.

It’s easy to think about doing it again a day, 2 even 3-days after doing it, but, come a week or two later, and the ‘weight’ of time comes into the picture making the effort harder and harder to accomplish.

This is a natural function of Life AND Markets.

It takes an expenditure of energy to set things in motion and even more energy to alter or change that motion to another direction.

Markets too, once they’ve obtained the energy and motion (for a trend) tend to stay in that trend and energy flow.

An object (the Market) in motion (trending) tending to stay in Motion (in the same trend direction).

Let’s take a look at a popular market (Gold) to illustrate the point.

The chart below shows the still-continuing downward trend for Gold at present.

Gold prices have been in a declining trend for over 3-years now. Those 3-years have now accumulated a momentum of their own and ‘lent’ it to the market called ‘Gold’ and, that downtrend doesn’t want to alter it’s direction and is highly resistant to change at this point.

This principle is simply a law of Nature; one we shouldn’t fight. It takes a good deal of ‘energy’ or ‘money’ to alter a trend in motion.

The chart for GOLD above shows just such a trend in progress.  In this case, Gold prices have been dropping for 3 years now.

This is a solid trend with the strong Weight of Time behind it.

It will take a great deal of energy to turn this market around. Much like it takes a great deal of time and distance to turn around an oil tanker once it’s in motion and decides to change course. Energy (money, in this case and a great deal of it) will be required to effect the change everyone has been talking about for the last 3 years while waiting for this trend to change.

A MAJOR TREND SHIFT IN GOLD?

NOT YET. But, we’re now seeing the earliest signs of some energy input into changing the trend from downwards to up again. In other words, a gradual shift towards an upwards trend has begun.

These are not at a 3-year level of trend momentum however.

The shorter downward trend periods of 6-months and 1-year have now been broken clearing the way to higher prices again.

But, these higher prices may be of short duration such as 3 to 6 months or less unless sufficient buying power comes into the market to lift prices above $1450/oz. within a month, or $1375/oz. in 6-months. Unless this happens we’re still stuck in a 3-Year downtrend that hasn’t quit yet.

A serious Bull market in Gold is not the way to bet until these price points are surpassed strongly.

In a deflationary world environment, rising prices for a commodity like Gold are pretty hard to justify or even hope for. However, ‘hope springs eternal’ in the minds of investors and traders.

I’ve written on this subject before from several different perspectives to illustrate the same fundamental laws.

When everyone has a ‘precious’ metal, it ceases to be ‘precious’ by definition.  When practically everyone has something (like Gold or Silver) where is the demand going to come from to push prices higher? Anyone??

Instead of a trading plan built on wisps of hope (or hurricanes of hype), It’s far better to work within the natural cycles of trend momentum that markets and prices gravitate to in order to read the ‘signs’ that really matter.

What’s encouraged, in other words, is a Human approach to trading that works within the same rule base that the Markets must work within.

Something that gives the user a feeling of control and solid-ground to stand on because they KNOW that they’re using the very same laws that Nature uses to run the World.

There’s nothing as comforting as using analytical methods based on the Universe’s Billions of years of successful application of Natural Laws!

When we recognize that these laws of the Universe are the same laws that govern our lives and that we’re not, in any way, ‘outside’ this System, then we can voluntarily align ourselves with them and make better assessments of market conditions and timing for trading those markets.

Whether a king of manipulators or an everyday trader, we’re all playing in the same sandbox. The Sandbox (the Universe) frames and contains all our possible actions within it’s boundaries and no one can thwart it or escape the Rules of the Sandbox.

What about the massive market manipulation of our times? It turns out that this is nothing new historically and many have prospered during the many other times just like these.

Take comfort and look at it this way; At least the Laws of the Universe are Honest and Incorruptible in their equal application.

In fact, in today’s world, it’s now much safer (and more satisfying) to work within those Universal Rules in order to out-maneuver the man-made schemes and misinformation that are increasingly present in both the markets and their supporting media.

All change is difficult to both accept and act upon. Human Beings are often slow to respond, change their positions or their minds (that’s the Weight of Time coming into play). But, when the Master System that rules this Universe puts these changes of trend into effect, we have no choice but to both accept and act quickly and follow that new Trend. - George

© 2014 Copyright   George R Harrison - All Rights Reserved
george@money-tigers.com

Disclaimer: All articles and posts are a matter of opinion (drawn from over 40-years of market research & experience) and areprovided for general information purposes only and are not intended as investment advice. Information and analysis above are derived from sources and utilize privately discovered methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisers.

From website: WDGann-Lost-Secrets.com

----------------------------------------------------------------------------------------
Bio Below . . .

Bio: George R. Harrison's background includes: Hedge Fund assistant manager; an intensely focused 44-year long researcher of the Markets; Market Analyst & Chartist and a recognized WD Gann expert, (having rediscovered and restored-to-print many ‘lost’ Gann techniques through his decades of research work) and creator of several revolutionary market analytical techniques and tools.

Mr. Harrison continues his market research & consultation work while living on the island of St. Croix in the US Virgin Islands.

Current market comments and archived articles may also be found on his website at www.wdgann-lost-secrets.com.

George may be contacted by e-mail at: george@money-tigers.com


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules