Here we are! The experiment came to its final stage - the summary. Almost eight months ago we put two completely different instruments on the starting line in an exciting competition, which should have proved or refuted the assumption of the ‘pendulum effect’. The Japanese Nikkei index was a top performing instrument in November 2015 with +13% gains while Palladium was the top losing metal with -24% losses.
Chart 1. Voting results November 2015: The Majority Bet On The Success Of The Experiment!
Above is the screenshot of the ballot results for the experiment. Most of you bet on Palladium winning, which means the success of the experiment, and you were absolutely right dear readers!!! Congratulations! And thank you for the support of the experiment! See the chart below for the confirmation. Continue reading "Pendulum Experiment Result: Success! One More?"→
Last November I brought an experiment to your attention based purely on the laws of physics. I called it the "Pendulum experiment." The idea of it was to pick the strongest and the weakest asset by performance in 2015 and to check if they will move back like a pendulum and exchange their performance position relative to each other – the weakest will become stronger, the strongest will become weaker.
Just to refresh your memory: the Nikkei index was the top performer and Palladium was the weakest metal (YTD November 2015). I want to express my gratitude for the active participation in voting; the results are in the graph below.
Dear readers, I hope things are good if you are short both top precious metals as per my Gold and Silver updates and you are enjoying the rising gains. As nothing unforeseen has been happening, let us do an experiment.
Do you know what a pendulum is and what the effect it has on an instrument? When something moves one way and then swings back and we push it harder forward, it will move back deeper for the distance that is equal to the distance between equilibrium and the forward point. Swings and waves are a normal part of our everyday life, and that is true for the markets as well. Continue reading "Pendulum Experiment: The Weakest Metal Vs. The Strongest Future"→
In my previous post about Palladium, I had used a different look for the technicals by implementing the ab/cd concept and Fibonacci ratios together. In that post, on the monthly chart I had assumed that the 50% Fibonacci retracement level ($528) could hardly be cracked by sellers and had confirmed it by using the weekly chart where the cd=1.618 of ab ends almost at the same level ($539).
Below is the weekly chart with details to show how the reversal has happened.
Weekly Chart (second month): Reversal Assumptions Has Proved To Be Right
Chart courtesy of TradingView.com
The price of Palladium has slightly overshot the 50% Fibonacci level ($528) down to $520. It’s amazing, but these ratios work like Swiss watches: precise and reliable and, of course, there are a lot of market players who use them every day. Continue reading "Palladium Has Justified Expectations"→
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