Response To GATA: Technical Analysis Foretells “Manipulation”

Avi Gilburt
ElliottWaveTrader.net
Posted Jul 24, 2016

It seems I have raised the ire of GATA, yet again, with one of my recent articles. It has struck such a chord that Chris Powell decided to address my article directly the other day. But, sadly, he really said nothing of use, just as GATA provides nothing of use for those whose primary purpose for investing is making money.

In my recent article, I outlined how the market sentiment patterns clearly provided us insight into the market drop seen this past week, and even provided us with our target of 27.80 in the GDX before the decline even began. And, by the way, the low we struck on the drop on Tuesday was EXACTLY 27.80.

In fact, as we were approaching our lower target, I then updated my chart looking for a rally back to the 28.80-29.10 region from 27.80 the next day, with the market, again, following towards our target with a high of 29.02 on Thursday.

Yet, Chris took exception to my analysis:

“Gilburt adds that yesterday's smashing of gold and silver was ordinary market action predicted by his magic charts of technical analysis -- and maybe it was. But how does he or anyone outside central banking know that the market action had nothing to do with government intervention?”

So, let me get this straight. Chris is admitting that my “magic” predicted the move in the metals quite accurately. But, because I don’t agree with his reason as to why it moved to my exact target, then my analysis is useless?

Chris, with all due respect, who the hell cares about reasons? If our primary goal of being in this market is to make money, and I assume that most of those that read articles to gain insight into the market have that as their primary goal, then your point is completely ridiculous.

But, if you want more of a substantive answer, given the accuracy of the prediction, you must come to the conclusion that the manipulators must have been following my analysis in order to “hide” their true nefarious conduct. Right? Otherwise, how would it even be possible for me to identify these moves as accurately as we have, unless, of course, we are part of the cartel?

Chris then questions:

“Can Gilburt's charts penetrate trading rooms of the Federal Reserve Bank of New York, the Bank of England in London, the Banque de France in Paris, the International Monetary Fund in Washington, and the Bank for International Settlements in Basle?”

Well, it would seem my charts can penetrate their trading room, or they are members of my Elliottwavetrader.net trading room. Take your pick.

Chris then concludes his article with the following;

“Odds are that since they are the biggest participants in the gold market, central banks know a lot more about the origin of yesterday's price smash than Gilburt's magic charts know. The central banks aren't telling and Gilburt isn't asking them and making a point of their refusal to answer, since it might be very bad for his newsletter business if anyone outside central banking knew exactly how central banks were intervening at any moment.”

Well, Chris, to be honest, if my “magic charts” are able to identify these moves that you believe only the evil banksters would know about in advance, would that not be GOOD for my business? Or, conversely, would it then not be bad for yours, since it may mean that something else is at play rather than manipulation? Something to think about.

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Avi Gilburt
website: ElliottWaveTrader.net

Avi Gilburt is a widely followed Elliott Wave technical analyst and author of ElliottWaveTrader.net, a live Trading Room featuring his intraday market analysis (including emini S&P 500, metals, oil, USD & VXX), interactive member-analyst forum, and detailed library of Elliott Wave education.

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