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COT sell signal on gold (10/01/07)
RedTiger
Posts: 5,608 ✭
Alex Roslin at Kitco Commentary flips to a sell signal on his commitment of traders indicator (COT).
article
For novices reading along, the COT is a sentiment indicator based on what commercials are doing, vs. what the speculators and small fish are doing. The Roslin interpretation turned bullish in May 2007, so that gives an indication as to the time frame for those wanting to take or ignore the signal. As with all indicators, none are 100%. However, sentiment is often useful in calling market turns, and is definitely useful in terms of signaling big danger for those that remain in.
Personally, I sold my trading position in GDX early Monday, before I read the Kitco article. I sold my GLD trading position a couple of days ago. Good luck to those that remain in the gold market.
article
For novices reading along, the COT is a sentiment indicator based on what commercials are doing, vs. what the speculators and small fish are doing. The Roslin interpretation turned bullish in May 2007, so that gives an indication as to the time frame for those wanting to take or ignore the signal. As with all indicators, none are 100%. However, sentiment is often useful in calling market turns, and is definitely useful in terms of signaling big danger for those that remain in.
Personally, I sold my trading position in GDX early Monday, before I read the Kitco article. I sold my GLD trading position a couple of days ago. Good luck to those that remain in the gold market.
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Comments
Apropos of the coin posse/aka caca: "The longer he spoke of his honor, the tighter I held to my purse."
Now, we'll wait and see if I was right. Probably the best time to buy based on
my previous market timing adventures!
bob
If the sell signal is valid, some intermediate term downside targets would be support at $700 or the lower 50-day-moving average around $680. Again, nothing is 100% and this is for entertainment purpose only, not advice. Those playing with real money, best know what they are doing, or best be advised by someone that knows what they are doing.
As always, reading a coin board for investment information is often a fools game. The information posted here, including what I offer, should always be double checked for veracity and accuracy from other sources.
Apropos of the coin posse/aka caca: "The longer he spoke of his honor, the tighter I held to my purse."
San Diego, CA
<< <i>Let me get this straight. If you all get these sell advisories from on high, and you sell, and the price therefore goes down, do you feel like you accomplished something? Seems like a self-fulfilling prophecy. Just curious. Been watching your little gold game here, and seems like a pattern is emerging. No one does anything on their own, do they? >>
What is your question? I sold before I read the Kitco article.
Those playing for keeps use whatever means are available to them. If it works, I will listen. If someone makes pointless, useless comments, I tend to ignore them, even though they can be entertaining at times.
<< <i>Alex Roslin at Kitco Commentary flips to a sell signal on his commitment of traders indicator (COT).
article
For novices reading along, the COT is a sentiment indicator based on what commercials are doing, vs. what the speculators and small fish are doing. The Roslin interpretation turned bullish in May 2007, so that gives an indication as to the time frame for those wanting to take or ignore the signal. As with all indicators, none are 100%. However, sentiment is often useful in calling market turns, and is definitely useful in terms of signaling big danger for those that remain in.
Personally, I sold my trading position in GDX early Monday, before I read the Kitco article. I sold my GLD trading position a couple of days ago. Good luck to those that remain in the gold market. >>
COT still bullish on silver, although it appears to be taking a hit in Asia as well. I may try and ride this one out with SLV.....may as well give back some of what has been made in the last few weeks
<< <i>Some buy on weakness and sell on strength. Others just buy steadily and hold. Then some emotional ones buy near peak prices and then sell at a loss. Which one are you? >>
Hah! I have done all of the above at some time or another, since 2003 I have been an accumulator and it has worked well so far.
<< <i>Some buy on weakness and sell on strength. Others just buy steadily and hold. Then some emotional ones buy near peak prices and then sell at a loss. Which one are you? >>
Some buy high, and sell higher.