Traders and investors lose when emotion supercedes discipline. The invisible hand knows it. The following charts illustrate how the emotional selling (panic) has been matched by disciplined accumulation by the invisible hand. A second threshold reading in gold’s concentration index (CI), illustrated in chart one, reveals this strength of its accumulation. A second threshold reading in gold’s long/short CI, illustrated in chart 2, will be further confirmation that the paper attack is running out of fuel. At that point, watch the headlines message change from the “bull is dead” to “bull is back.”

Chart 1: Gold London P.M Fixed and Concentration Index (CI): 1 = Bullish Setup, -1 = Bearish Setup


Chart 2: Gold London P.M Fixed and Long/Short Concentration Index (CI): 1 = Bullish Setup, -1 = Bearish Setup