Not Too Late for Gold

Source:

...The longer the time that elapses between the breaking into new territory, the greater the move you can expect because the accumulative energy over a long period will naturally produce larger movements than if it only accumulated during a short period of time...

Excerpt from Raymond James strategist Jeffrey Saut's latest essay:

The gold index (GLD) has broken out to new all-time highs. This is not an unimportant point, for as our technical analyst Art Huprich noted in his insightful report last Friday:

Here is a quote I recently read by W.D. Gann, considered by many professionals as one of the greatest commodity traders ever. He states:"When a stock or commodity advances into new territory or to prices it has not reached for months or years, it shows that the force of driving power is working in that direction. It is the same principle as any other force which has been restrained and then breaks out. Water may be held back by a dam, but if it breaks through the dam, you would know that it would continue downward until it reaches another dam, or some obstruction or resistance which would stop it. Therefore, it is very important to watch old levels of stocks or commodities. The longer the time that elapses between the breaking into new territory, the greater the move you can expect because the accumulative energy over a long period will naturally produce larger movements than if it only accumulated during a short period of time."

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