To da moon?
"To da moon", bet
you haven't heard that for a while, a long while. Last time I
heard that was around Nov 2003, just before gold stocks topped
out. Its been over twenty months since the party was over, although
we've had some nice tradable bounces, but the easy money of 2002
and 2003 are now a distant memory. The 7% rally on the $HUI past
two days have brought some gold bugs out of the woodwork. A few
of my subscribers sent me messages today, posted at some of the
gold forums, and yes, according to these self proclaimed gold
gurus, the gold train has left the station and $1000 gold here
The IP model
Those who have been following my work the past few years have seen my IP model at work. Those who haven't can read this article in archives, or contact me for a free copy.
The breakout model
This is it. Sorry to disappoint you if you were expecting something complex. Those who were with me in 2002 and 2003 have been very patient, because in 2002 the breakout occurred after only a few months of consolidation. 2003 was a bit longer at almost 12 months, and the current giant consolidation has been ongoing for twenty months. Will we see breakout #3 soon? As I said earlier, we cannot predict, but we sure can prepare. Below are some of the stocks which did very well during the past two breakouts
Traders are constantly living in fear. When a market rallies, there is fear of missing out. When a market falls, there is fear of losing. Those whose trading patterns are governed by fear will always end up buying the highs and selling the lows. Yes, you can lose money in a bull market. So, has the gold train left the station? Sorry, according to my models, the train is at the station, idling; perhaps not for long, I hope.