“Woe to the land whose king is a child and whose leaders are already drunk in the morning. Happy the land whose king is a nobleman, and whose leaders work hard before they feast and drink, and then only to strengthen themselves for the tasks ahead”. (Eccl 10: 16-17)
"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat
In every stage of these Oppressions We have Petitioned for Redress in the most humble terms: Our repeated Petitions have been answered only by repeated injury. A Prince whose character is thus marked by every act which may define a Tyrant, is unfit to be the ruler of a free people. Source – The Declaration of Independence
Hi Dan - have been following your posts for some years at JSM and it's great to be able to follow your insights/musings here in more depth now. Thank you.
ReplyDeleteA question, if you have time: a number of admirable technicians (Clive Maund and Morris Hubbartt) are sceptical of this recent move up in gold, as volume has not been strong. I would appreciate your thoughts on the role of volume in this move and/or price moves generally.
Many thanks. - B. in Toronto
Bruce - I will try to accomodate your request as time permits. I have had an extremely busy day today.
ReplyDeleteWe generally want to see strong volume accompany any move higher since that is the force that lifts the market. When volume is tapering off it is generally indicative of a lack of conviction.
STrong volume is not needed for a market to move higher; it can do that as many doubters sit on the sidelines unsure whether or not to join in. However, strong volume is necessary for a market to sustain a move higher. Once an overhead technical resistance level that has been a significant barrier gets breached, one will see the volume increase as the doubters then move in and conviction increases.