By: specoletta on Giovedì 04 Aprile 2013 16:44
San occhio con il buy gold.. Riporto questi grafici molto interessanti...
The top chart reflected that for 30-years, each time the Swiss Franc hit resistance line (1), gold traded flat to down for years, reflected by the red arrows in the bottom chart. As you can see by the comments received in that post, many investors said "No Way" that could happen. Well....
Keep in mind this situation was taking place at the same time GLD became the largest ETF on the planet! (see GLD largest ETF/Eiffel tower pattern).
The S&P 500 ETF (SPY) became the largest ETF in the world back in 2000 after a 10-year rally, was that a good time to "Buy & Hold" SPY? Buy & Hold didn't work too well -- because 13-years later, SPY was at the same price point. If you traded SPY with a simple 200-day moving average as your buy/sell trigger, you far outpaced buying and holding SPY!
Reformed Broker shared this chart to readers back in February (see post here).
GLD became the largest ETF on the planet in August of 2011, when Gold was trading at $1,900 per ounce, at its Fibonacci 261% extension level and at the top of its 10-year rising channel. Not a bad time to hedge or harvest long Gold holdings! Once GLD became the largest ETF on the planet, was that signal to start renting/trading gold versus buying & holding it? So far renting has worked out better than owning.