The New Gold Bull.....or Not?

The New Gold Bull.....or Not?

Is there a new Gold bull market happening? The big problem with the gold bulls and the gold bears is they base their market analysis completely on fundamentals. You know the central banks are printing money and the value of currencies are only going to plunge over time.
     Well here is the problem with that. Gold started its long trending ascent long before QE was introduced and long before fundamentals went south. If you go back to 2001 when gold was trading at pre 200 levels you can clearly see that the Dollar started to go south and then the commodity markets started their ascents. Really a pretty clear cut correlation.
    For the markets to raise to the moon again in terms of commodities the Dollar is going to have to fall and fall hard. Is that likely to happen?
In a word, "NO".
All you have to do is look at the Dollar and where it is. It is still moving sideways to up and that is why oil has staged a bit of a rally and gold has too.
       If you rely on the talking heads then you are going to be seriously disappointed in your results.
The only fellow who has made serious cash over time in the markets is a fellow by the name of Richard Dennis. How he did it is the way you make money. He had a simple moving average cross system where he used price action as a means to enter and exit trades in about 20 highly liquid markets.
The system was mechanical. It removed all the decisions of the trader. This is important because you will often times sabotage your results. You will exit a trade far too early by taking early profits and you will unfortunately let your losses run. It is a realistic fear because of the jokers that rig this market have the ability to push price against you the minute you enter a trade. How often does price ever immediately move in your direction? I rest my case.
    However this is how you do it. There is no other way. You have to be mechanical around your decisions. The problem with that is the algos and the high frequency traders make it even more difficult. The markets are much more correlated now then they were when Dennis made his fortune which also makes it harder.
     What you need is a system like I posted below here. It may seem like a simplistic type of system and yes you would be correct. However there are some definite benefits in using it how I designed it to work.
It may look like a lot of lines that makes no sense with some sort of trending indicator on the chart. Well you'd be correct. Along with a program that gives me the average daily range.
    You need a system like this to determine where gold is really headed. You need to make money whether gold is going up or down. Trading takes incredible discipline. That is how Dennis did it. He followed his own rules blindly.
Fundamentals and technicals by themselves do not work. It is that simple. You need a systematic approach to do well. Ask me some questions on this system and I will tell you how I do it.