...Chartmeisters have a general rule "The longer the base, the bigger the move". I have to be careful here, I am predisposed to be short but I've gotta say, this chart is looking more and more like a pop to the upside.I followed-up with a comment at MarketBeat:
From Kitco:
click to enlarge
A few minutes ago gold was trading at $790.90 up $42.20.Comment by - November 20, 2008 at 1:37 pm...Mr. OZ sir,
I said yesterday that I thought your Doppelgänger, The Undertaker, was early on scaling back into gold.
I’m going to qualify that with the classic economist “on the other hand”.
Looking at a Kitco 30 day chart this morning, it struck me that we were forming a flatline base, if it continues for any length of time we should get a short-term upside pop.
The pop wouldn’t alter the “Behavior of Gold Under Deflation” thesis but would be profitable for a while, eventually though, probably a bull trap.
Disclosure:
Long ruby slippers.
Sometimes you get lucky.
