Q: Is there an update on the bottom for the gold market?
A: Yes. On the bullion, it appears that the low was $1045 about 8 months ago. The shares made their lows mostly a month later. Some shares such as ABX, bottomed a half year earlier. It has been a fragmented market pattern.
Q: When do you think will be the best time to use your system?
A: When the shares and bullion are trading together and after a wave 2 corrections to the first up leg.
I expect that to be in the first quarter of 2017. Maybe as early as January. I admit to missing the bullion low at $1,045. I was looking for a contracting five wave diagonal triangle and missed the triple ABC. There will be plenty of opportunity to profit shortly. Wave 2 frequently retraces most of wave 1. Playing the bull market from the start of wave 3 will be safer and can be done without trading in and out. Pyramiding will be in order. Always keep in mind: this is not investing. It is speculation.
The Fixed System
Q: What is the Fixed System?
A: The Fixed System is the application of economic law in a manner consistent with the scientific method to profit from price changes.
Q: What do you mean by scientific method?
A: Using observation to establish facts and then logic to reach useful conclusions that follow from the factually correct premises.
Q: What do you mean by economic law?
A: A useful description of human action related to economic activity. See Human Action by Ludwig von Mises and Man, Economy, and State by Murray Rothbard.
Q: Where do I begin if I want information about how to apply economic law?
A: Start with The Art of Speculation during Civil War — Sun Tzu Meets Jesse Livermore.
Q: These three books amount to over 2,000 pages and the material is sometimes difficult. Do I need to understand all of it before I can use the Fixed System?
A: No, but you’ll get better results if you do. If you want to base your speculation on facts and not falsehoods, on valid conclusions and not fallacious reasoning, then read and study these three books.
Q: Which of the three should I read first?
A: Start with the Q&A in Sun Tzu Meets Jesse Livermore (Appendix A). Then read the entire book, then Mises, and then Rothbard.
Q: I understand that all value is subjective and that in a market economy, the current price will be bid up to the expectation of future price less cost of carry. The same process occurs in reverse when market participants expect the future price to be lower. You use four criteria to measure this and to call the low in the gold market: 1. a break to the downside in the general securities market, 2. extremely negative sentiment indicators, 3. ending wave pattern, and 4. specialist short covering. Is all of this part of the Fixed System?
A: Yes. That all value is subjective is a fundamental law of economics. The system is fixed because economic law and facts are fixed. You can ignore the facts and law but you will suffer the results of ignorance never the less. Economic law is just a binding as the law of gravity.
We invite you to request a consultation at your convenience.