Wednesday, February 20, 2008

Gold Price and Silver Price Outside Reversal Days

The gold price and the silver price put in outside reversal days to the upside. Very bullish.

(Click on charts to enlarge)

Friday, gold put in what was probably a "chart painting" outside reversal day (by the anti-gold cartel) to the downside to try and spook the weak longs. Monday, the New York markets were closed. Tuesday, gold gapped up and broke up out of its flag. Wednesday, today, gold went down to close the gap and then turned around and went up to produce a bullish, "in your face" (to the anti-gold cartel) outside reversal day to the upside, making a new bull market high. So much for the spooking. Guess the cartel has to go back to spooking school. An arrow shows Friday's probable "chart painting" outside reversal day to the downside.

"Gold is absolute objectivity. It is blind, like justice. It has no politics and ideology, no likes or dislikes, no friends or enemies. All it recognizes is its possessor, whom it serves faithfully so long as he has it." -- British historian Paul Johnson quoting Charles de Gaulle

"If a politician found he had cannibals among his constituents, he would promise them missionaries for dinner." --- H. L. Mencken

Today, silver did the same as gold. Another "in your face" outside reversal day to the upside. That is really bullish gold price and silver price action.


mafafa said...

Hi Bob. I have a newfound interest in metals, but I have never invested in anything (stocks, bonds, metals, nothing) and I don't understand the lingo. I don't mean to be a boor, but could you possibly translate your editorial into standard American English? I get the gist, I think, but I don't understand "chart painting", "spook the weak longs", and "outside reversal", in particular. I guess what I'm saying is, "Huh?".

Anonymous said...

Hi Mafafa, TPTB (the powers that be), anti-free market types:

"In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. ... This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard. (1967)...Gold still represents the ultimate form of payment in the world....(May, 1999) " Alan Greenspan

try and enfluence markets by buying and selling in the markets. Sometimes prices act in a way where it looks like they are "painting the charts" or "chart painting" is going on. They might try to make prices give a **bearish signal** to get people who are long, who are positioned to make a gain if prices go up, scared and sell their long position. Selling makes prices go down or slows down upward price movement. An outside reversal day to the downside is a bearish signal. Some would get out of their long positions, sell, on that signal. If they sell, this can mean the price of gold goes down or does not go up as much as it would without the market interference of those that do not want the price of gold as high as it could be, or want to slow down its rise.

They want to "spook the longs", make the weak people who have long positions (positions that will make gains if prices go up) afraid that prices are turning around and going down, and therefor the weak (unsure of the fundamentals) "longs" sell helping the price go down or not up as fast.

People who are "short" have positions that will produce gains if prices go down.

There are weak "longs" and strong "longs" and types in between. The same for the "shorts".

TPTB have only so much to play with in the markets, so they try to fool/con others into helping them.

Outside reversal days from:

Outside reversal days to the downside: intraday prices went above the previous day's intraday high and went below the previous day's intraday lows and closed lower than the previous day's close. The opposite close (higher than the previous day's close) for a day to the upside.