Gold, Silver, and Indexes Using Price Action

fortydraws said:
Gold April futures look to close above the hinge, but not the most robust breakout I've ever seen from a hinge. NUGT looks like it is starting to breakout of its own hinge.
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Yes, gold is showing strength here. Also price is again attempting to get close to the potential resistance. We'll have to see if price continues up or fails here. NUGT is a monster mover no doubt. It can be used quite effectively by those who prefer the hourly bar interval. Other than that, gold has been overwhelmed by demand mostly and the moment of truth is at hand.

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NUGT or GDX are in a hinge. This could lead to higher prices but for now it's unclear what is in store. Today was a strong day no doubt and a win for the demand. Next week we'll have to see whether supply has any conviction or is done.

GDX (NUGT is 3x GDX)
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Gringo
 

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Hehe,

I was curious about something regarding fundamentals (so that one can have something to talk about at cocktail parties) and found a chart that wanted to share.

chart-image-26cf7a6366f871e8.png


Before money printing bubbles became an everyday practice, markets used to top around 20 times PE ratios. We are around that level, so unless thousands of tons of newly printed (I know they don't even bother to print them anymore) dollars keep the party going, I am not sure how much it can last. Although we can always reach the "new normal" :) .

I am not even sure this discussion is relevant, but wanted to point that out.
 
niko said:
Hehe,

I was curious about something regarding fundamentals (so that one can have something to talk about at cocktail parties) and found a chart that wanted to share.

chart-image-26cf7a6366f871e8.png


Before money printing bubbles became an everyday practice, markets used to top around 20 times PE ratios. We are around that level, so unless thousands of tons of newly printed (I know they don't even bother to print them anymore) dollars keep the party going, I am not sure how much it can last. Although we can always reach the "new normal" :) .

I am not even sure this discussion is relevant, but wanted to point that out.
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Well, Ken Fisher on his book "The Wall Street Waltz" pointed out a similar idea. He also referenced a PE ratio of 20. But in an updated 2007 edition, he stated that PE ratios were no longer an indicator of an impending decline. When you look at the late 80's, PE ratios began to shoot up much and nothing major happened. However, we'll just have to see....
 
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