Skip to main content

Dow Divergence in Gold

Richard Russell of the Dow Theory Letters writes "From a Dow Theory standpoint, the markets continue to face a major non-confirmation in the Averages. The Transports have risen to new record highs while the Dow has failed month after month to confirm. Thus, from a Dow Theory standpoint, this is a dangerous market. It's particularly dangerous because of this truly spectacular divergence and non-confirmation in the Averages."

The above paragraph was taken from an article citing a different crcumstance. But it is relevant to the point we cite below.

The Comex Gold has been making higher tops with the frist top made at $541. But the MCX gold has rotundly failed to breach the top made at 8134. It managed to trade above these levels several times, but it has failed to sustain above these levels. So are we "Undecided market" [I wont use the word dangerous in this case]. Time will tell.

:) Falkor

Comments

Post a Comment

Popular posts from this blog

How-to overcome sendentary lifestyle.

Some interesting points on overcoming sedentary lifestyle. There are many other routine ones, just try googling that. 1. Some not so routine tips on avoiding the sedentary lifestyle 2. Walking while talking on phone is a good way to get expressive and burn calories too. 3. Don't use the phone to call someone a short walking distance away. Walk and visit whenever possible. Same for grocery shopping. 4. Catch a different bus that makes you walk a bit more. You can catch a bus from a different stop, a little farther from your regular stop. 5. Pacing the length of the subway platform whenever the train/bus is late. 6. Dance Source: from various places on net
Post a Comment
Read more

Cognitive rules of business presentations

In his recent book, Clear and to the Point, Kosslyn explained that the four rules of PowerPoint are: The Goldilocks Rule, The Rudolph Rule, The Rule of Four, and the Birds of a Feather Rule. Here's how they work. The Goldilocks Rule refers to presenting the "just right" amount of data. Never include more information than your audience needs in a visual image. As an example, Kosslyn showed two graphs of real estate prices over time. One included ten different numbers, one for each year. The other included two numbers: a peak price, and the current price. For the purposes of a presentation about today's prices relative to peak price, those numbers were the only ones necessary. The Rudolph Rule refers to simple ways you can make information stand out and guide your audience to important details -- the way Rudolph the reindeer's red nose stood out from the other reindeers' and led them. If you're presenting a piece of relevant data in a list, why not mak...
Post a Comment
Read more

Definition of Cult Stocks

From a blog: A classification describing stocks that have a sizable investor following, despite the fact that the underlying company has somewhat insignificant fundamentals. Typically, investors are initially attracted to the company's potential and accumulate positions in speculation that its potential will be fulfilled, providing the investors with a substantial payout. While most of these cult stocks promise they will be the next big story after they make a new discovery or get the newest contract from the government, most do not provide investors with anything other than the story. Furthermore, these stocks typically generate very little, if any, revenue at all. For example, many micro-cap biotech stocks are cult stocks. While they promise that they are going to be working on a miracle compound or drug, most of them do not have any source of income as they slowly burn away their initial capital in research and development. However, some cult stocks do occasionally make good on...
Post a Comment
Read more