Loading ...AgentArgent @ 8:48
I used to read the Dinesletter for decades. James Dines was the original gold bug. He used to say, when encountering choppy lateral motion, assume the prior trend is still intact.
He wrote the first book on and called Technical Analysis and it’s and it’s a rare valuable collectible item I heard.
An original copy on eBay is $1,500
Yes, I remember that guy when the first uranium mania was under way….but I agree. A consolidation after a large move (any direction) is more likely to continue the trend move until negated. Follow the price action. I made a lot of money on timing the silver move last year, and I’m not looking to lose it. I will react to price, but patience is virtue here. I think the new floor for silver is around $65. Could we pull back again to that level, yes. Would I enjoy it, no. But have to react to price action, not hope.
If I make 50% return from here this year, maybe I’ll buy it. Be a nice collector’s item for a speculator like myself….
“when encountering choppy lateral motion, assume the prior trend is still intact.”
Correct, but there is a complication here, when viewed through an EW lens.
We had the parabolic rally, as the wave 3. And now the corrective 4 (“lateral”). 5 up should follow, aligning with that advice.
BUT … within the 4, at one lower degree of trend, we have either an ABC or an abcde triangle. Or both.
The triangle may fit within the B wave.
So within the 4, the lateral we are seeing could be the prelude to a downward flush that bookends the initial A wave drop off the high.
Bottom line … loose language re technicals can still get you killed.