One of the most difficult decisions an investor must make is to determine if a turning point is of short-term or long-term consequence. The markets give subtle clues to students of the market of impeding danger and times of caution. A stock?s reaction to news may tell us the authentic underlying strength. In November and December, gold, silver and mining stocks sold off on China raising rates and now in February they shrug off the news. Is that telling us the correction may be over? A break above the 50-day moving average will bring back the previous gold run. Often times in a secular uptrend news items are planted, causing short-term shakeouts, which often in retrospect are great buying opportunities. I have learned over time it is important to look at a long-term weekly chart and review the trend. If the trend is a normal healthy linear trend then most
Complete Story »
No comments:
Post a Comment