Chart Junkie: Gold from Several Perspectives and Unemployment
Courtesy of Damien Hoffman at Wall St. Cheat Sheet
“The Professor” Corey Rosenbloom at Afraid to Trade offers us a longer term look at Gold. Although it’s breaking out on the shorter-term charts, the chart above clearly indicates there exists resistance above which must be cleared for the next bull rally to run. (Source: Afraid to Trade)
Gold Priced in Multiple Currencies
Precision Capital Management offers a very interesting look at Gold priced in multiple currencies. They state: “Gold is one of the leading indicators we follow at our website. Everyone seems to have noticed the spike up this week in gold, but how do we determine if the move is real, or merely a fakeout? To confirm that gold is advancing on its own merits as part of a longer term move, which is not the result solely of US Dollar weakness, we want to see confirmation of an up move in gold priced in other currencies. Above shows gold priced in the Canadian Dollar (CAD), Australian Dollar (AUD), Japanese Yen (JPY), and the Euro (EUR). When gold began its last advance in November 2008, the move was confirmed by higher lows in the commodity currencies of the CAD and AUD, as well as the EUR (even though there were lower lows in the JPY and USD gold). Eventually, there were higher lows in the JPY and USD gold at the beginning of December 2008. Accordingly, for the gold bull case, early confirmation would be to see current lows in AUD, CAD and EUR gold respected on the first pullback (especially in the former two as they are commodity currencies), preferably accompanied with a break through overhead resistance.” (Source: Precision Capital Management)
Gold with Fibonacci Indicators
Our partners over at RatioTrading bring us yet our third and final perspective on Gold: “As demonstrated in this chart, Gold has historically respected key Fibonacci Ratio levels and with Gold retesting all time highs, where could it be headed? Well as we look historically over the past year or so we see that in many instances when the GLD broke out and made a new low, it went right to either a 1.272 Fibonacci extension ($73) or a 1.618 ($65). Now , as we are approaching a serious line of resistance, the big question is where are we going? The expectation we have is that IF GLD can break out at the very least it should get to $100 which has also been an area of resistance. However, if it can get more momentum then expect $104 to come quite quickly. Remember, trade your plan, have rules and implement them with discipline. It’s the only way to survive in these markets!” (Source: RatioTrading)
Here are two beautiful longer-term charts from Barry Ritholtz. Above we can see unemployment looking back at the 10-year moving average like Neil Armstrong from the moon. In the chart below, we can see that every month this year has been far more harrowing than the months in years past. Hold on to your hats (Source: The Big Picture)
