Why It’s Important to Allow Some Wiggle Room

Technical analysis is much more of an art than a science. [Jeff Clark's Market Minute]( Why It’s Important to Allow Some Wiggle Room By Jeff Clark, editor, Market Minute Get ready to buy the gold stocks. The overbought conditions that turned us cautious, even bearish, on [the gold sector one month ago]( have been worked off. We’re now approaching a buying opportunity. Recommended Link [“Amazon Loophole” could hand you $28,544 in “royalty” payouts]( [image]( Thanks to a little-known IRS loophole… Regular Americans can collect up to $28,544 (or more) in payouts from what Brad Thomas calls the “Amazon secret royalty program…” And the best part is, there are: - NO age or income requirements… (It’s available to anyone 18+ or older) - NO employment requirements… (You can be working part-time, full-time, or even be retired) - And you NEVER have to shop or sell a single product on Amazon… (It only takes 5 minutes to set up!) See how to collect the next payout before the strict cutoff deadline. [Watch short video now.]( -- Look at this updated chart of the bullish percent index for the gold sector (BPGDM)… [(Click here to expand image)]( The BPGDM measures the percentage of gold stocks that are trading in a bullish technical formation. It’s a gauge of overbought and oversold conditions. Since it’s measured as a percentage, a bullish percent index can only reach as high as 100% or fall as low as zero. Typically, a sector is extremely overbought when its bullish percent index rallies above 80%. It’s extremely oversold when it drops below 30%. Trading signals are generated when the index reaches extreme levels and then reverses. But, that’s not a HARD rule. Technical analysis is much more of an art than a science. So, we have to allow for some “wiggle room” on the indicators. The BPGDM never reached 80 before it reversed lower. It didn’t technically generate a sell signal. But, traders who allowed for some wiggle room would have avoided the 13% decline in the gold sector over the past month. Now we need to allow for some wiggle room on the buy side as well. The BPGDM closed at 54 on Wednesday. That’s still well above the 30 level that indicates extremely oversold conditions. So, there’s room for the gold sector to work even lower. But, we probably don’t need to see the index dip below 30 before buying the gold stocks again. Since the BPGDM didn’t technically generate a sell signal last month it may not, technically, generate a buy signal before the gold sector starts to move higher again. Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. Folks who were looking to buy gold stocks last month certainly have a much better opportunity to do so today. We still might see some additional weakness in the sector in the short-term. But, the longer-term outlook remains quite bullish. Traders should consider using any weakness in the gold stocks over the next few days as a chance to add exposure to the sector. Best regards and good trading, [Signature] Jeff Clark READER MAILBAG Are you bullish on gold stocks? Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com. IN CASE YOU MISSED IT… Millionaire Trader Reveals: [How to Make One “Backdoor” Currency Trade – Every Month – And Start Making All the Money You Need to Fund Your Retirement]( [Click here for the name of the currency trade.]( [image]( [Jeff Clark's Market Minute]( Jeff Clark Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.jeffclarktrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Jeff Clark Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-752-0820, Mon–Fri, 9am–7pm ET, or email us [here](mailto:contactus@jeffclarktrader.com). © 2023 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](