Whether you likes it or not, nothing goes up in straight line in any market- this includes gold or stocks or any investment vehicles. You have to understand the Cycle timing. As the Bible pointed out: “A time for everything” and there is “nothing new under the sun”. Similarly, there is a time to buy and a time to sell.
Gold plunge by more than $200 in 2 days, Am I surprised ? Not at all, in fact this is within my expectation on medium term time frame as you can see my big statement on home page of my website which says “ the time for shaking out weak hands in gold and silver” – go and read more. In fact, in my unpublished ebooks and reports ( will be released soon ) i expect gold and silver to hit low points in April and will head even lower by August-October this year.
For quick short term trading, i also wrote an article ( dated 16/03 ) on my website titled “ The stock market bull is enjoying on the mountain sunset”which said: I expected gold push through 1600 if 1552 critical support holds- it did hit 1617 but unfortunately did not last long before retreating back below 1600 again. Finally by last Friday, 1552 was broken which caused gold to plummet big enough to shake all weak hands out. For trading purpose, if you place your Sell Stop at 1551, now, you would make a huge profit.
You need to realise that Short term trading is very different from investing. Short term trading requires constant monitoring with technical analysis to get you in and out quickly . Long term Investing requires much patience for the good timing entry to unfold so that you can buy at the safer level without being affected by daily price fluctuation or noises. It also means that you wont get stop out easily and can stay invested for big move on longer term basis to make huge profits.
So....Different courses of action at this time should be adopted with the help of my proven Cycle Timing and Technical Analysis.
1. Risk-Aversion investors may want to focus on time frames ranging from medium term to long term investment.
2. Wait for a generational opportunity to start accumulating gold and silver for the long term.
3. For risk-takers- involve in short-term trading, as there are big opportunities arising from this historic collapse. Nothing goes up or down in straight line, so use Short term Cycle model and analysis to make some profits in rally or counter-trend rally.
Regarding stock market, refers to my articles dated 16/03 and 14/03....they are still very relevant.