Archive for the ‘Exchange-traded fund’ Tag

Gold Reversion to the Mean price rise.

GLD representing gold
is currently:

–Greater than 2 Standard Deviations below it’s 200 EMA
–Greater than 20% below it’s 200 SMA.

Gold Reversion to the mean

These are historical extremes
and similar locations to the 2008 stretched bottoms.

Gold appears due for a
reversion to the mean
[at least to its 200 MA]
price rise.

Tho note,
In 2008, after returning to it’s 200 MA
gold plunged again below its prior low.


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Wednesday, May 16th  Keith  Weiner

On Monday, May 14, something happened
that hasn’t happened since Dec of 2008.
Two successive near-month precious metals futures contracts
were in backwardation at the same time

the May silver contract is giving away a 3% annualized profit
to anyone who would sell physical silver and buy a May future
that delivers in a few weeks (thus recovering the same position).
Even more incredibly,
no one can or will take the profit that is dangling out there!

I think that it is a lack of unencumbered metal.
The markets for precious metals, silver more than gold,
have become quite tight.

Sunday, June 3, 2012  Adam

May was the highest monthly volume in the history of GDX
(with a bullish monthly candle to mark a bottom)
and Friday was the highest daily up volume in the history of the GDX ETF.
clearly, the big boys … have now established their positions.

Commercials are eliminating gold shorts.

Commercials are building a heavy long euro position.

A dollar drop may be in the cards.