Market Turning Points – Part 1 – Euphoria & Panic (11:20)
Market Turning Points – Part 2 – Gold Charts (6:34)
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Time to re-visit this old video on Market Hysteria and Major Turning Points. Particularly since it’s been almost 2 months now since the collapse in the price of Gold was splashed all across the news.
The Gold bugs sure did become hysterical and they sound a little shell shocked right now. But they’re holding firm – QE will lead to the US Dollar collapsing and Gold soaring. Err maybe – I’ll check back with you in 10 years time to see how it played out.
In the meantime, the panic selling has brought us down to the $1,350 level with Exhaustion volume patterns on the weekly chart. We’re still in a long term down trend, BUT this is a level where we could get a bounce. Particularly because we have End of Trend on the daily chart.
What I’m looking for over the next few weeks is some tests back down into this level with Amateur bars. Then a break above a daily resistance level into a little run to the upside.
I find the relationship between a strong Gold price and political instability the most interesting. If we do get a run to the upside, what political shock will drive it? Seems like there are so many to choose from: Syrian invasion, Islamic terrorism in Europe, someone exits the Euro or Euro-zone, Senkaku Islands, etc.
[Correction: The Google Trends tool used in the first video references the number of Google searches on a particular term, rather than searches plus articles written online.]