Gold and the Full Moon
For the last three years we have had a tradable low twice a year. Once in the summer, once in the winter. The bear market in the metals has gone on longer than any in the last fifty years. As of today, is four years and three months old more or less. One day there will be a major bottom and shares will go up a lot. The HUI is down some 83% in that timeframe.
I wrote an interesting paragraph in the start of a piece I posted for November 6 of 2014. Here it is in full:-
As it turns out, that was a good call. Gold dived on the 6th to a new low for the year of $1130 before zooming higher.
On July 30th of this year I mentioned the strange relationship between the phases of the moon and what happens at a full moon. The market began its climb for the year.
On both occasions the trends turned. I will go out on a limb once more and suggest that either gold will accelerate lower or do a U-turn.
I will admit there is a little voodoo with suggesting that market timing for any commodity has anything to do with phases of the moon. I didn’t discover the relationship; actually Tom McClellan of McClellan Financial Publications came up with the concept. It’s not a 100% perfect correlation. Sometimes it works, sometimes it doesn’t but often trends accelerate or do a U-turn at a full moon.
Wednesday Nov 25, 2015 is a full moon.