On the top is a chart of GLD...
Below it is an oscillator...
Take a look at the oscillator in January 2011...It is oversold at -80...
Take a closer look and you will see the oscillator turning up while the price made a new low...
This is positive divergence which is bullish...
Note that after large January 2011 redemptions in the PM mutual fund, see posts on February 18,2011, the fund dropped to about $125mil from about $250mil...the price of GLD bottomed a couple of days later at 127.80 and today it closed at 139.91...
Fear took over when GLD dropped from 139.00 in December 2010 to 128.00 in January 2011...So the fund was sold at the wrong time...
Using the oscillator together with the large redemptions of the PM fund told the story for GLD...
Today the PM fund is $150mil...
Past performance is not indicative of future results.
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