Tuesday, March 3, 2009

GLD -- Volume by Price Chart (plus a special sales pitch)

as readers of the Trend & Value Letter well Know, I pay very close attention to the relationship between price and volume when analysing securities. below is a chart of GLD with 'Volume by Price' bars drawn horizontally from the left end of the chart.



the bigger the bar, the more volume traded at that price level. I've mentioned this situation with GLD in the newsletter (subscribe at top of blog!) recently, but I think blog readers should understand the importance too. a Public Service Announcement, if you will.

if GLD can hold this volume support level through the current period of weakness then super. this will be noted in the history books as a key period of 'accumulation'.

however, a violation of this big volume range from here would indicate that Gold has been in a broad period of 'distribution'.

Accumulation = 'good'; Distribution = 'bad'.

a fall below this level now (without an immediate rebound) should lead to an extended period where the price of Gold 'wanders the desert,' so to speak, in that range between the two big volume bars long enough to test the faith of even the most fervent of converts.

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a note about the newsletter: I've been writing this thing for a couple months now and I think I'm finally getting into a good groove with it. the subscriber base, while small, continues to grow each week. my only marketing has been this odd-ball weblog and the occasional kind word from the nice boys at IKN and Biiwii.

if you are looking for an honest perspective on the markets, consider giving me a shot. if you try the service and don't like it, then damn, yer out 28 bucks. but I think once you become more acquainted with my way of thinking you'll see good value not only in terms of the price I charge, but more importantly, in terms of the time and intellectual energy required on your end to appreciate it.

for my part the Letter has so far been a great intellectual experience, and I'm confident that the content will improve even more as the weeks and months go by. I'd like to share that experience with you. you Know, if you got a little extra cash.