When we look at our Risk Tolerance Threshold Ratio for gold -- below --we see that even when we count the Grand Pattern, which we do not consider a 'tradable" patern because it is so long-term -- call it an investment pattern -- we have the majority of patterns down. It is ominous that the most influential pattern from the trader's perspective -- the Day to Day Pattern -- has remained stubbornly lower since early November.
Gold Futures Jan, 4th, 2013
M Grand Up
W Primary Up
W S-primary Down
D Secondary Up 1620
240 Day to Day Down
60 Micro Down
15 Micro Down
Our 2013 thesis for commodities is a return to two-way trade, which the stance of the tradable patterns in gold confirms.
Jay Norris is the Director of Education at Trading University and a Market Strategist at EosTrade.com
Trading is a rsiky endeavor and not suitable for all investors.
