READY - SET - GO!
Peter Degraaf
"It is the characteristic of an ARAT to breakout out at the horizontal top."
While researching the material for this article, I visited Google, typed in 'Advancing Right Angled Triangle (ARAT)', and was amazed to see that the first item listed, out of 25,900 pages was a reference to one of my previous articles at GOLD-EAGLE.com: 'The Silver Bullet'.
It's nice to see that some articles have 'legs'.
I am struck by the number of ARAT's we are presently seeing in precious metals charts.
(Charts featured courtesy of StockCharts.com).
Starting with the HUI index of unhedged gold and silver miners.
Followed by the Philadelphia Exchange XAU index of 16 large gold and silver miners.
As well as the extensive, recently created, Gold Miners Index.
and including the price of silver bullion,
As well as the SLV iShares Silver Trust,
North of the border, the XGD.TSX displays the same pattern.
Gold stocks that currently feature this reliable pattern include:
ASA Ltd, Miramar and street tracks Gold Trust shares GLD.
If your advisor currently has you 'short' precious metals or gold and silver stocks, or perhaps has you buying into a PM short fund, better get ready to cover and reverse course!
I would never advise my clients to go short during a bull market. You can too easily burn your tootsies!
IT IS THE NATURE OF AN ARAT TO BREAK OUT AT THE HORIZONTAL TOP!
Happy trading!
August 23, 2006
DISCLAIMER:
Please do your own diligence, I am not responsible for your trading decisions.
Peter Degraaf is a successful on-line trader who sends out occasional E-mail alerts. He offers a 60 day free trial. He also sends out a free E-mail message to people who are confused by some of the terms used. It is called: Explaining the terminology. Contact him at itiswell@cogeco.ca
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