Why are so many traders moving more into cash?
Chris Temple join us to chat about the continued move by traders into a more cash heavy portfolio. Will it continue?
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GLD /SLV ratio:
has spiked below the 200 day MA, but I’m not succumbing to exuberism just yet.
Two big gaps up top need filling, and isn’t that an Island Reversal?
Chartists would know what that means – I don’t.
http://stockcharts.com/h-sc/ui?s=GLD%3ASLV&p=D&yr=0&mn=10&dy=0&id=p81309089155
I hope the move down is long and drawn out with plenty of volatility. Now that it’s oversold, a bounce up to the 144 day ema shouldn’t be too much too ask.
http://stockcharts.com/h-sc/ui?s=GLD%3ASLV&p=D&yr=1&mn=3&dy=0&id=p64848441959&a=408685539
144? Why that odd ball number? Noob here needs some schooling.
144 is a Fibonacci number.
http://io9.com/5985588/15-uncanny-examples-of-the-golden-ratio-in-nature
Fibonacci numbers are based on the Golden Ratio:
http://en.wikipedia.org/wiki/Golden_ratio
And so is the universe:
http://www.fractaluniverse.org/v2/?page_id=81
True Dat.
Fibonacci sequence
1; 1 ;2; 3; 5 ;8 ;13; 21; 34; 55; 89; 144……
(1+1)=2, (1+2)=3, (2+3)=5, (3+5)=8, (5+8)=13, (8+13)=21; (13+21)=34, (21+34)=55 (34+55)=89, (55+89)=144, ……….
*It is one of the patterns of all creation and how we perceive space time, but don’t worry about that… just focus on potential retracement levels of 23.6%, 38.2%, and 61.8%.
Here’s were these Fibonacci “Fib” Retracement levels come from:
The key Fibonacci ratio of 61.8% – also referred to as “the golden ratio” or “the golden mean” – is found by dividing one number in the series by the number that follows it. For example: 8/13 = 0.6153, and 55/89 = 0.6179.
The 38.2% ratio is found by dividing one number in the series by the number that is found two places to the right. For example: 55/144 = 0.3819.
The 23.6% ratio is found by dividing one number in the series by the number that is three places to the right. For example: 8/34 = 0.2352.
Basically you pick 2 points, (normally a peak or trough) and then plot the retracement level between those 2 points at 23.6%, 38.2%, and 61.8%. Some people use 50% because, as people, we love to chop things in half (bread, cheese, interest rates, clothing sales, so even retracements….why not?)
Fibonacci in Nature
More Fibonacci Numbers and Nature (rabbits, cows, honeybees, pinecones, flower petals, leaves, and seeds).
http://www.maths.surrey.ac.uk/hosted-sites/R.Knott/Fibonacci/fibnat.html
15 Uncanny Examples of the Golden Ratio in Nature (From Spiral Galaxies to your human body….. The Golden Fibonacci Ratio is the pattern of creation unfolding.
http://io9.com/5985588/15-uncanny-examples-of-the-golden-ratio-in-nature
I’d like to see a correction as well but since I am playing the Tripple-X ETFs 🙂 nice gaps down will work wonders for my bear 3X ETF.
Fersure I could live with drawn out down draft as I’m fully allocated, not looking to buy anything but hope to start selling.
By the time gold gets to 1500 – 1600 range I hope to be all out except for phyzz.
Maybe BitGold,
Could be a long wait Irwin. I hope you have other plans in the meanwhile.
Anyway, you won’t sell once gold hits 1500 again because we will be back in a bull market by then and heading much higher.
No idea how things will work out exactly, but it is possible that HUI will catch a negative correlation to SPX during the time that SPX does a major reset. In such an event I would be selling PM stocks and looking for bargains in another sector.
http://stockcharts.com/h-sc/ui?s=%24SPX&p=D&yr=3&mn=0&dy=0&id=p43896081938
In the meantime I plan to do nothing except book the occasional profit which may appear here and there.
I think this is just going to be another drift sideways week in the conventionals. A bit up, a bit down… as if everyone is waiting for something to happen…