Two Quotes: The first from Richard Russell from today's (6/9/09) remarks. The second from W.D. Gann:
Gold -- In the meantime, we have the mystery of gold. Below we see a weekly chart of gold. From all appearances, this is a huge hand-and-shoulders bottom pattern. The right shoulder has been moving toward upside resistance at 1000. But now the uptrend has been interrupted. Is this the beginning of another full correction or is gold simply backing off in order to build a better base for an attack on the highs? Nobody knows, and it will be critical to see if gold holds above that current rising trendline. Back in the 1970's I used to write, "Gold, gold, you're making me old." I'm writing that again now.
From W.D. Gann:
"When a stock (or commodity) advances into new territory or to prices which it has not reached for months or years, it shows that the force or driving power is working in that direction. It is the same principle as any other force that has been restrained and breaks out. Water may be held back by a dam, but if it breaks through the dam, you would know that it would continue downward until it reached another dam, or some obstruction or resistance which would stop it. Therefore, it is very important to watch old levels of stocks. The longer the time that elapses between the breaking into new territory, the greater the move you can expect, because the accumulative energy over a long period naturally will produce a larger movement than if it only accumulated during a short period of time" …… W.D.GANN
Gann wrote also of getting to know the personalities of stocks and charts. Many have tried to objectify this approach, a task that is about as easy as trying to objectify how to write good music or poetry. Perhaps an impossible task. As a corollary: You either sing on key or you do not. You get it or you don't. In any event... I have been working for the past few years to develop a sense of the personality of this gold bull and I think that there is very little chance that it is about to be stopped. It looks a heck of a lot like something ready to explode at any time. It is very patient and persistent, not angry, not about to stumble or make a mistake, just waiting and continually peeking in the door waiting for the guy with the gun guarding the safe to be asleep. That guys eyes are getting very droopy. Gold can wait. Hopefully you can too. Bull
