Part Deaux
Thursday, July 1, 2010
When TA fails
Whoops, I'm sure Dennis Gartman and his "famed Gartman Letter" will be on Fast Money today saying how he got out of gold just in time when in fact he told the world two days ago that although he wasn't a gold bug, gold was about to go hyperbolic. It must be tough trying to predict the future. And in fact it is, that's why people try to play both sides of the fence at all times when doing public predictions. Stop listening to talking heads or bloggers and start listening to yourself. That's my free advice for today.
Part Deaux
Part Deaux
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Sure makes me feel like a genious when I dodge that kind of bullet. I tried getting long GLD on the breakout to new highs in anticipation of conintued momentum. But when it fell back down, something just did not feel right and I hit eject. Technical analysis is a great tool just like any other tool might help your trading but sometimes you just have to go with your gut, but even that isn't fool proof.
ReplyDeleteBut I think GLD gave you two clues that if you were long should had told you to get out. The first was when it made a new high and broke 122.47 and traded to 123.5 and lost steem, and if that did not get you out it gave you a second chance. It tested its previous high and put in a new high at 123.56 and was again rejected.
If you were long and you missed these clues than you probably lost money.
If TA were even close to full proof then we would all exploit it and eventually it has no value. Life isn't that easy. But used in tandem with other tools I at least now know its not to be ignored, just not to be heavily relied upon.
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