My success at calling tops in the gold (GLD) and silver (SLV) markets is well documented. Those not familiar with my work may want to start out by reading the following: ·
The Arora Report Blog
Gold: What To Do Now
Gold And Silver: What To Do Now Redux
Silver Demand Theory Debunked
Debt Ceiling Agreement: Short Selling Silver Again
The gold chart illustrates the call.
The silver charts illustrate the call.
My long time readers know that I use the ZYX Change Method. The markets are complex and in our research, simple methods do not work under all market conditions.
Einstein said, ‘œMake it as simple as possible but not any simpler.’
We have followed Einstein in making the ZYX Change Method as simple as possible but no simpler than it needs to be. It still takes time to learn the method. However, there is a simple tool that we have incorporated in the method that every investor should consider using.
The tool is the CBOE Gold ETF Volatility Index (GVZ). GVZ measures the market’s expectation of 30-day volatility of gold prices by applying the VIX methodology to options on SPDR Gold Shares (GLD). Like other VIX benchmarks, GVZ uses options spanning a wide range of strike prices.
A similar tool on silver, iShares Silver Trust ETF (SLV), is not readily available, but it is easy to calculate.
The chart shows recent action of GVZ. When GVZ spikes in the red zone it is time to short sell. Read more….
