Grandich and the 200DMA

I know certain readers don't appreciate Grandich at all.

But he recently posted a little commentary on the recent catastrophic loss of the 200DMA by gold that I thought was worthy of linking to... only because I've been saying the same fucking thing.

If you don't want to follow the link, this chart copied from his blog says it all:


Basically, don't go freaking out over an arbitrary number. The 200DMA is an arbitrary number. This chart proves it. The 200DMA has never been critical support.

The 50 week SMA has been support, at least for the past 3 years (it was pierced in 2009 during the market crash); We're still above the 50-week SMA.

And that's why I'm not concerned about gold. Not just yet anyway. Plus, whatever else Grandich has been up to, pumping his buddy's companies and all, he still does make the odd very good market call. And he's not bearish on gold at all.