Friday, December 21, 2007

Charts Of Interest

Above is a chart of gold (GLD). As you can see we have a very nice symmetrical triangle. I'm hoping gold will break out to the upside as I am already long gold.

The 10 month cycle in the Canadian dollar is due now. The last cyclical low was made in January 2007 and was one of my biggest trades of the year even though I exited the trade way too early. It will be interesting to see if this cycle produces another significant rally.

Commodity stocks break out to new highs for the year.


Anonymous said...

Kevin, Last summer you were calling this Canadian $ cycle an eleven month cycle, and you had a clearly annotated chart posted showing the cycle bottoms. That chart predicts the cycle will bottom in January.

This is not a criticism. I have tremendous respect for your work, and I thank you for sharing it. TA is an imprecise science at best and it involves guesswork at times. Just beware of getting in too early, that's all!


CHRIS said...

Hi Kevin,

Thanks for the charts on the Canadian dollar. I am currently long on the C$ using the currency options on the Philadelphia exchange. I was just wondering if there is another way besides using futures as my account isn't set up for them yet. Thanks and keep up the great observations - much appreciated!

Kevin said...

Hi Lexical,

The cycle is really a 10 1/2 month cycle on average, so if I call it a 10 or 11 month cycle, it really doesn't make too much of a difference. The fact remains that a cyclical low is diue now going into next month. My personal opinion is that the cyclical low was just made.

krhulak said...

Hi Kevin,

Thanks for another interesting post. Last time you predicted that both gold and the dollar would go up and, amazingly, they both went up slightly! Now you predict that Canadian $ would go up as well and usually Canadian and American $ move in opposite directons. Now, is it really possible that gold, American and Canadian $ all go up simultaneously?

Thanks again for your informative posts!

Kevin said...

Hi Krhulak,

Nobody knows what will happen but it is quite possible that the Canadian dollar and the U.S. Dollar will both move up, or maybe the dollar will go sideways while the canadian dollar has a small rally.. My advice is to trade each market on its own because it's very easy to complicate trading by thinking too much. Trust me, I know..:-)

Tom said...

Great line on thinking to much.
Enjoy the holidays.


This site may include market analysis. All ideas, opinions, and/or forecasts, expressed or implied herein, are for informational purposes only and should not be construed as a recommendation to invest, trade, and/or speculate in the markets. Trading and investing involves high levels of risk. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise.
Technorati Profile Finance Blogs - Blog Top Sites