Is now your last chance to be buying gold under $1,000 or is this a false breakout? All successful trend followers and commodity traders know they do not know the future. The fact is on Sept 2 Gold broke out of a multi month consolidation. Trend Followers and commodity traders that use breakouts bought at various points around $969 or even higher.

The gold market has been quiet of lately which is way this is an interesting consolidation. Trend followers and commodity trading advisors really have no idea when gold investing. All they consider is price action. The fact is there was significant price action which has taken the gold market knocking on the door of $1,000. There are many that believe the gold market is like a new currency or gold money. They might be correct…however in order to make money in the commodities markets fundamental opinions do not concur with price action.

The fundamental opinions range from the Chinese buying gold (in which they have doubled their holdings this year) to the increase use of gold jewelry in India. The fact is that successful trend followers have absolutely no opinion on any market. It might be interesting to think about the fundamentals…but the only issue is price action. Once commodity traders start thinking in this fashion they are more on the track of long term success.

It will interesting to see if this is the last chance to be buying gold under $1,000!

Andrew Abraham
www.myinvestorsplace.com

Andrew Abraham has been in the financial arena since 1990. He is a commodity trading ddvisor and co manager of a Commodity Pool. Since 1993 Andrew has been a proponent of quantitative mechanical trading programs. Andrew's major concern is not only total return on investment but rather the amount of risk that one would have to tolerate in order to achieve returns He focuses on developing quant models that encompass strict risk adherence and correlation. He has been a speaker at conferences as well as an author of numerous articles. Andrew has spent years researching ideas that have the potential to outperform indices as well as maintain fewer draw downs.

Visit Angus Jackson Partners (http://www.angusjacksonpartners.com) Contact: A.Abraham@AngusJackson.com (mailto:A.Abraham@AngusJackson.com)

© 2009 Copyright Andrew Abraham - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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