Good morning, everyone, and welcome back from a three-day weekend.
While trying to think of something to write about, I glanced at some gold-related charts and had concerns. Although I am increasingly enamored of DBC and its prospects (which is commodities-related, and not focused on precious metals), my commodity-oriented trades related to precious metals seem far more vulnerable. Take a look at these:
I think that ultimately these charts may fight their way through the overhead supply, but I'm not sure if my capital is best allocated somewhere else waiting for a better entry price. The general notion that inflation is inevitable and that the only "real" money with any sustainable value (gold) will ultimately win the day resonates with me, but charts are my principal basis for decision-making, and they have to take precedent.
My capriciousness with respect to precious metals hasn't served me well recently, since by and large trying to time entries and exits seems to be inferior to simply riding out the waves and riding the presumably inevitable rise higher. I'll at least not "ditch" the positions and instead reassess my stops to what seem like technically sensible levels, which is what I'm supposed to be doing in the first place anyway!
