Two Charts Argue Gold is Poised to Move

Posted by EquityClock & TheNextBigTrade

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First, Gold is poised for a significant seasonality change as can be seen in this chart below:


Chart by Jon Vialoux of EquityClock

“Seasonality refers to particular time frames when stocks/sectors/indices are subjected to and influenced by recurring tendencies that produce patterns that are apparent in the investment valuation.   Tendencies can range from weather events (temperature in winter vs. summer, probability of inclement conditions, etc.) to calendar events (quarterly reporting expectations, announcements, etc.).   The key is that the tendency is recurring and provides a sustainable probability of performing in a manner consistent to previous results.” – Jon Vialoux

…….more on Seasonality  by Jon Vialoux of EquityClock HERE

 At the same time, the sentiment situation in Gold has become favorable as this article from The Next Big Trade argues: 

Preparing for the Big Trade in Gold

The irony about the current gold market is that gold is actually slightly higher than it was two years ago in June 2013 when it made a crash low.  But many gold market pundits and the financial media have maintained their bearishness on gold for two years predicting another crash in gold.  It simply hasn’t come to pass.  The reason they’ve maintained this popular bearish view is the gold market has been devoid of hope for years now in the depression phase.  This is where people give up hope at the bottom of a market.

sentiment cycles

What’s interesting though as the chart above points out is that the “point of maximum financial opportunity” is also the point at which people have given up on an investment.

… more & view 4 more charts HERE