News, analysis and commentary for gold traders and investors

"Be Right - Sit Tight"

Jesse Livermore
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Gold Market Wire

News, analysis and commentary for gold traders and investors

Gold Market Update

Gold Makes Its Move...Higher

March 4, 2024 - (Gold Market Wire) - Gold has made a move above the long term horizontal resistance, and, as loathe as we are to say it, technically, has nothing but blue sky ahead of it. We will need a solid weekly closing above the horizontal resistance line, but initial indications are positive.

...technical perfection.

and the zoom out.

uncharted territory.

From here on out, if we stay above the line, Gold will be in a new atmosphere. Long and Strong is the only way to be. If we look at the (very) long term picture, in the monthly chart below, it certainly appears that we are entering a new world.

...more confirmation

There is little to add to the commentary except that adding to core positions is necessary now. For those with large profits from equities, now is the time to re-balance the portfolio and add to Gold.

It does little good to throw out wild predictions of Gold's ultimate trajectory, but in the initial stage $2,600 should be feasible. From the trading perspective, we should be ready to take profits along the way on large surges, with 1/3 to 1/2 of length in preparation of pullbacks. Then re-establish length. The trading book and the core book should be strictly segregated. And yes, there should be some serious physical in the core portfolio.

Lastly, if the market gets wild, try and stay calm by not chasing large moves, and keep a sense of proportion. Yes we have had a break out, and adding to core looks like "chasing strength", but in reality, it has only been about a 1 1/2% move. That is very different from buying into a rally that is up 3.5% on the day. That is what you do not want to chase. If you can be a contrarian, measured, the book will work fine. Waiting for the big drops, and buying in a proper scaled-down manner, and not a sudden, wildly leveraged purchase, will do wonders. The first purchase should be the smallest, not the largest. The core will cover the long term, so avoid insanity in the trading book. If you are leveraged, you had better have some professional experience and not be an amateur. The tree-shakers will be out in force. They are defeated by patience and discipline. If we are entering the next bull phase...and honestly it is right on 13 years from the 2011 high...volatility could be manic. Remember, there are people who spend their lives making money out of volatility. Do you know how they do it? If you don't - don't take them on. And lastly, if you ever feel ready to load up the trading gun and scream, "This is it!!!" as you empty the magazine into the market and buy with both hands... rest assured you will almost certainly be wrong. And if you aren't, in that will be in the next one.


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