There are two simple secrets to consistently making profits in goldGLD +2.62% and silver SLV +6.61% . Anyone can easily learn these secrets.
First some background is in order. In my article Gold top was easy to see , I demonstrated how the adaptive allocation models at The Arora Report correctly called the top in gold for this swing at $1757 and gave a sell signal. Adaptive models are the models that automatically change themselves to make correct market calls. The same adaptive models previously also correctly called the gold top when gold was over $1900 and gave a signal to sell half. The chart illustrates the calls.
The adaptive model also works well for silver as shown on the chart.
The two variables that determine gold and silver prices are inflation and risk. The sub-variables of inflation are deflation, disinflation, and inflation. The sub-variables of risk are risk on and risk off.
A mathematically inclined investor can easily develop a model using the above described variables and look for correlations with the gold and silver prices. The model should assign the highest weight to the variable with the most correlation to the gold price and the lowest weight to the variable with the least correlation to the price. The investor is ready to consistently call the twists of the gold and silver markets correctly as long as the investor changes the weights based on price correlation to the variables.
In my articles, Gold top was easy to see and Gold, silver sell signal backed by Kim’s death , I showed how anyone without any knowledge of computers …Read More at MarketWatch
