Kind Words from Terry Laundry, Founder of T Theory

"Parker has sent me what I consider to be the most important refinements to T Theory I have ever received from anyone in an e-mail . . . which he calls Tweaking the 13th Advance Decline T." September 29, 2010

"Parker has sent me a very interesting concept which is the NY Advance Decline line divided by the put-call ratio . . . What he's done is introduce the idea of sentiment." September 15, 2010

"Parker discovered the Money Flow Ts . . . This is something like the Holy Grail in T Theory. You are always looking for something that will help you refine the peak date." October 17, 201

"Money Flow Ts are probably the greatest new thing I have seen in 20 years in terms of time symmetries." December 5, 2010.

Saturday, May 8, 2010

$GLD Consolidates while the Dollar Strengthens

We've seen this before. Gold made a new multi-year high in early December 2004. From there, the dollar rallied for 11 months while gold consolidated. When the dollar topped in November 2005 and started down, gold blasted off from $460 to $730 by May of 2006. Click on the chart:




This time, gold made an all-time high in early December 2009. Since then, the dollar has rallied from 74 to 85 while gold has consolidated between $1226 and $1045. See:



At some point, the dollar rally will likely top out. If gold is still in a consolidation pattern, I would expect that a falling dollar would be the catalyst for a run at $1650 - $2000 an ounce.
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4 comments:

  1. UnknownMay 8, 2010 at 11:00 PM

    Nice work, love your stuff. You deserve many more followers on twitter.

    ReplyDelete
  2. PositionSizingMay 9, 2010 at 12:42 AM

    Thanks for the kind words, rightcross!

    I'm just trying to march onward through the fog . . .

    ReplyDelete
  3. AnonymousMay 9, 2010 at 9:33 PM

    Thanks for the Analysis. $1045 we have a jmup point on Trend Analysis, Elliot Wave puts us in a 3rd leg, this gives us down side which we suspect will be around our mutual $1045.

    We differ slightly, as I'm sure many do, in that consolidation appears to have concluded. Breaches in the upper resistance levels support a theory that Gold spot is ready to move past historical highs before a correction i.e. 4th down side to a 5th up and beyond.

    It's an Interesting time.

    http://fx-sunrise.blogspot.com/

    ReplyDelete
  4. Think Tank ENTMay 9, 2010 at 10:35 PM

    Great comparisons as usual from Position Sizing.

    ReplyDelete

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