Comments on: We Apologize for Interrupting the Gold Rally, But… http://www.investmentu.com/IUEL/2009/November/gold-rally-interruption.html Investment Advice and Investment Research with a Contrarian Point of View Tue, 16 Mar 2010 17:01:25 -0500 http://wordpress.org/?v=2.8.3 hourly 1 By: Myo http://www.investmentu.com/IUEL/2009/November/gold-rally-interruption.html#comment-30703 Myo Thu, 03 Dec 2009 04:08:10 +0000 http://www.investmentu.com/IUEL/2009/November/gold-rally-interruption.html#comment-30703 I agree with Jesse. As in any bull markets, there will be pullbacks or corrections. But my personal barometer for a bubble are a few very obvious red flags. 1. Gold is on the HEADLINE NEWS of major newspapers for at least once a week. 2. Gold is the topic of discussion at social circles and parties where most people are not traders or brokers or financial analysts. 3. Your grocery store clerk, your taxi-driver, your shoe-shine boy, and your neighbor strikes up a conversation with you about gold. 4. You go to a jewelry store, and you see a long line of people, and they are there to BUY gold. 5. As in 1, major news media hosts talk about gold on a weekly or daily basis. If above 5 red flags or most of them are showing, it's time to dump gold in a hurry. Thanks! I agree with Jesse. As in any bull markets, there will be pullbacks or corrections. But my personal barometer for a bubble are a few very obvious red flags.

1. Gold is on the HEADLINE NEWS of major newspapers for at least once a week.
2. Gold is the topic of discussion at social circles and parties where most people are not traders or brokers or financial analysts.
3. Your grocery store clerk, your taxi-driver, your shoe-shine boy, and your neighbor strikes up a conversation with you about gold.
4. You go to a jewelry store, and you see a long line of people, and they are there to BUY gold.
5. As in 1, major news media hosts talk about gold on a weekly or daily basis.

If above 5 red flags or most of them are showing, it’s time to dump gold in a hurry.

Thanks!

]]> By: Jesse http://www.investmentu.com/IUEL/2009/November/gold-rally-interruption.html#comment-30280 Jesse Fri, 27 Nov 2009 03:53:30 +0000 http://www.investmentu.com/IUEL/2009/November/gold-rally-interruption.html#comment-30280 As Jesse Livermore once said, "Never sell anything just because it has gone up." What are the fundametal drives of the rally since it began in 2001, and the trend lines? Have they been violated? Are the drives changed? Hint: the driver is negative rates of return on dollar assets. Until then one buys the pullbacks and sells strength for short term trades, but never gives up their fundamental position. As Jesse Livermore once said, “Never sell anything just because it has gone up.”

What are the fundametal drives of the rally since it began in 2001, and the trend lines?

Have they been violated? Are the drives changed?
Hint: the driver is negative rates of return on dollar assets.

Until then one buys the pullbacks and sells strength for short term trades, but never gives up their fundamental position.

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