lateral move - monday, page-3

I had one of those light bulb moments on the weekend when I plotted my gold chart – I have a perfect head and shoulders bottom. The neckline is slanting slightly upwards (more bullish than a flat one) and the decline this week makes an exact parallel with the low last October and the neckline. Not only that – I have a perfect 50% retracement of this year’s rise. Might have to do a bit of work around these levels.


Also in the background, silver has slightly improved its ratio to gold – just nudging the downtrend. Now I would like to see silver turn my short term indicators bullish which will go a long way towards confirming this analysis.

One more thing – when I was sitting quietly at the beginning of the year trying to think how things might play out in 2014, I came to the conclusion and mentioned it at the time, that I thought that we, the Australian market, might start to take more notice of Asia than the US. Now that hasn’t been clearly heralded yet but we are starting to see indications of the growing influence. If this proves to be the case, the ramifications for so many things in the world are almost unimaginable.

Back to watching the Twenty Leaders on the local scene. When the market was moving strongly last year, I found the XTL the best guide. However, since the market has been trading in this wide band, the picture has been much the same on each, but I think there is a clear pattern again on the XTL so watching it closely for a break.

Never a dull moment in the stock market.