Just a quick update on my thoughts on Gold and the Stock Market.
Since I wrote this post Back in Oct 2018...
The Stock Market or Dow Jones did make a very large decline from Oct 3rd 2018....in fact it was the largest decline ever of over 5000 points within 3 months....when it fell from a level of 26954 to 21454 by ened of the year..
It did however go on to reverse back up from December 26th and amazingly has recovered...
At the moment the Dow has made a new high at the 2700 level on what in chart pattern terms suggest what is knwn as a triple top that can often be a sign of a strong reversal..if the 3rd top holds around the prior or past highs within a few points..(say within 50 to 100 on the Dow...)
It has however hit another important cycle that I am concerned about that occurs any time between today and July 11th... or 21st.. that could see it reverse down again....If it stays up after July... then I expect it may continue to rally into at least October to initially 28200 or 28800 level...
On the S&P 500 the other MAJOR US INDEX.... that has made a similar chart pattern between Jan 2018 and now..
BUT its present level seems to have broken to new highs that shows quite a clear break above the past Jan and Oct 18 highs.. that makes the chart pattern look less bearish...
Gold however did find a low within the time frame that I indicated and has since continued to go even higher and a week of two ago had hit the 1420/30 level...if I recall I posted my analysis back in August 2018 when gold hot a level of about
1180...
One chart that I just looked at sugest gold it a high of 1439..
the 1440 level could see a reversal....especially if this cycle reacts
so its rallied up by 240 /250 points or more....within a year so far....
If you were able to trade Gold Futures.. if I recall each point moved in Gold is worth $10...
so a 240 point move would have made 250 x $10 = $2500 per contact...
Although full contracts can be expensive... in Futires you can trade on a small % of the full contract known as margin say at a 10th of its real value but still make gains of the full contract...
But you have to protect your trade with whats known as stop losses and no doubt the risk is higher...
if you can time it well and estimate price levels tha risk is much less..
Gold (GC) futures have a tick size of 0.10 per troy ounce. A contract is for 100 troy ounces, so the contract price moves in increments of $10.
if the Stock market should decline severe by end of the year... Gold may go much higher or even new all time highs...
I had hoped that all who could have purchased some gold or held some may have managed to have made a profit of some sort... and Zorgon had been able to had done so....