Gold: Get some
sun, stop worrying
Richard Russell
snippet
Dow Theory Letters
May 29, 2008
Extracted
from the May 28, 2008 edition of Richard's Remarks
Gold down, silver down, oil
down (maybe), copper down, sugar down, cotton down, rice down,
wheat down, CRB Commodity Index down -- what the devil is going
on? Is the world deflating? Or is the world just taking a "time
out?" My guess -- a time out. There were too many up-spikes,
too much leverage, too much hysteria, too much hype. Give it
a rest.
Gold -- Worried about gold? Don't be. Like most of
the commodities, gold is "cooling it." The correction
continues in gold, and we can see it clearly on the weekly gold
chart below.
At its March high gold got
too far away from its 40-week moving average, and now it's letting
the 40-week MA catch up to its current price. The weekly histograms
are now close to turning up, and the slow stochastics at the
bottom of the chart appear to be scraping the bottom.
Personally, I'd buy gold here
before I sold it. I think we saw the low for gold on May 1 when
June gold hit a low of 849. The 40-week moving average for June
gold stands at 843. So 843-849 -- that should be about the low
area for gold.
Sit tight.
Get some sun.
Stop worrying.
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written May 28, 2008
Richard Russell
website: Dow
Theory Letters
email: Dow Theory Letters
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