The setups I include on this blog are used in conjunction with the 3/10macd and the criteria I ascribe to it as a way to alert me to an existing condition of price. The key concept to take away from this blog is that I try to anticipate what will happen on the higher time frame by using a faster time frame to trigger the trade setup. I do not trade a "system" I use two indicators to clue me in to price conditions. Please read the Disclaimer located in the sidebar of this site. I can be contacted via email at toddstrade@gmail.com
I am always open to questions, comments, or suggestions on how to improve this blog.


Thursday, May 21, 2009

GOLD

As the Dollar falls apart and Treasury yields expand, Gold is back on the rise (has been since testing, twice, it's 200-MA).
Here's TLT accomplishing it's "Death Cross"The U.S. Dollar index approaching a 50% Fibonacci retracement (from March '08 lows to March '09 highs). While a "Death Cross" here looks inevitable.Looking at GLD's weekly chart; October '07 we had a pennant pattern that completed it's measured move coming into the first quarter of '08. Currently it looks to be expanding out of a long-term flag pattern. If that's the case, a possible measured move would bring prices to new highs, around the $115 range.Here we see it on the Daily chartWith that all said, AU is at it's base of previous resistance.

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