Friday, March 22, 2013

Volume Off the High 3/22 Edition

Just one name here falling from lows with volume....

The Odds of Picking that Perfect Bracket

Ya, I am glad I played a bracket this year. I think there are better odds of winning the lottery

High Volume High 3/22 Trading Day Edition

Still more than a few names too choose from making new highs on volume support.

High Volume High 3/21 Trading Day Edition

More names making highs than I thought.

Volume Off the High- 3/21 Trading Day

Here is the list of names coming off the highs for the 3/21 trading day.....

Eurozone Enters New Phase- Cyprus Enacts Capital Controls

As ZeroHedge writes.....

moments ago Cyprus became the first Eurozone country to officially implement governmental capital controls into legislation. At this point it had no choice: whatever happens with the deposit haircut, or with everything else, it is now inevitable that the local Cypriots will do all they can to pull as much money from domestic banking system as possible following the complete loss of faith and trust in banks, which is why the government had no choice but to intervene with its own "controls."

There appears to be more 'work' the legislators in Cyprus still need to complete , like for instance how to steal from the bank accounts of depositors, as this article from Bloomberg implies. Whatever the eventual outcome, this cannot be a good predicament as it relates to the confidence in that Europeans will have in the banking system. Gold on the other hand.......

Sitting On My Hands and Waiting for All That Glitters

I am sitting on a small profit in the gold and gold/precious metal stock investments made a few weeks ago, purchases made when the the timing models dipped into the strong buy zone as the price of gold fell to into the mid-$1,500's per ounce. Now however, I am sitting on my hands and biding my time waiting to see if the market provides another opportunity to buy at lower prices. And yes, I may be quibbling about a few points, but I would much prefer to stay true to discipline.

This is not to say, however, that that current timing indicators are pointing to sells. Far from it. Although the timing models have risen with both the price of gold and due to the timing component, they all remain in buy zones. What is lacking is a definitive sign of strength in the gold markets- be it the Spider Gold ETF (ticker GLD), commodity gold, or the gold/precious metal sector indexes. I am still of an opinion that the price of commodity gold and precious metal stocks may be entering a consolidation phase and may trade sideways, building support for higher prices. I would much rather prefer to enter into purchases into the lower end of this channel, if it does come to fruition.

Turning to the models and as I mentioned above, the rise of the price of gold (along with the timing component) has led to a worsening in the models. This is despite higher monetary supply. That said, the models remain in a buy zone. The charts of the three timing models are presented below, updated for recent monetary supply, gold prices, and gold/precious metal stock index prices.

3-Month Model, -0.84

1-Year Model, -1.6

6-Month Model, -1.2