I can’t give away the Charts tonight , they are for members (and they are very interesting to say the least)

However the preamble to the report is an excellent tutorial on what it is we are trying to accomplish and what we are up against as traders.

Enjoy ( Fully)

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I was all set to post some charts for the stock markets, but with the price action in gold on Friday I decided to update some important charts we’ve following for gold instead. The $64,000 question is, was last Friday’s move in gold something we’ve been waiting a long time to see and is now coming to fruition? One day doesn’t change the big picture very much, but on the shorter term charts one can see a big change. Eventually a stock or market has to show us their hand and if we’ve been looking in the right place, we should be able to pick up on what the stock is telling us from a Chartology perspective. The key point is to be looking in the right place at the right time.

The markets are masterful in confusing the most investors at the right time which leads them to be on the wrong side when an important move begins. It’s the only way it can be because everyone can’t be right. Most investors have to be wrong at an important inflection point. For 2 1/2 years now gold has been doing its job of confusing both the bulls and the bears alike. That’s what creates trading ranges as the bulls and bears fight it out for dominance. In a bull market the bulls have the upper hand because that is the dominate trend. In a bear market just the opposite happens and the bears will eventually win out.

There is one theory out there that the low made in December 2015 was the bear market low for gold which could still be correct. On the other hand “WHAT IF” the 2 1/2 year trading range for gold has formed a six point triangle halfway pattern to the downside? I realize what I’m saying here is blasphemy if one is trading in the PM sector, but one has to keep an open mind when it comes to the markets. I hate to say this again because I’ve said it so many times in the past, but the only rule when it comes to the markets is there are no rules.

Most investors think the markets have to conform a certain way and when they don’t do what they think the market should be doing there is always someone or something to blame. Manipulation is alway a good way to cover ones tracks if you’re wrong and the market goes against you. Many like to use the PPT, plunge protection team, that keeps the stock market from falling. These excuses can keep you from finding the truth on your own. When your game plan fails one has to face the truth and ask yourself why? It’s how one grows as an investor in one of the toughest games on the planet to win. Being wrong isn’t a bad thing if you learn from your mistakes. The important thing is to realize when one is wrong. If it was easy everyone would be millionaires or even billionaires if the markets worked just like you think they should.

In the word Chartology, “ology” represents the psychology a chart shows by the millions of investors that create the different chart patterns from the bulls, bears, fundamentals and all the different trading disciplines people use to try to get an edge. It’s the psychology part of investing which is the hardest part for investors to grasp. I’m constantly questioning myself from a psychological perspective as to whether I’m being caught up in the herd mentality. It can be so subtle in thinking we are being a contrarian when in fact we are acting as part of the herd.

If one can survive long enough in the markets you will find that it’s a never ending process of learning and growing that only comes from lessons that are given to you each day by the markets. Keeping an open mind and learning from our mistakes will eventually make us a better investor. It’s never easy and will never be easy, but that is the nature of the game we choose to play.

Tonight I would like to do an in depth report on the US dollar looking at it from different angles as it affects so many other markets especially from commodities, precious metals and currencies. It’s not always a perfect correlation, but close enough that we need to pay close attention. Most of these charts you’ve seen many times in the past so I won’t go into a lot of details as they are pretty self explanatory.