Q: Is now a good time to be buying gold share or bullion? You have still not issued a buy signal. When do you think you will be able to give a buy signal on the Fixed System?
A: January or February 2017 is the target now.
Q: Are you expectation the gold market to go down from here?
A: I am expecting 2 weeks up and 3 months down from here.
Q: Do you have a wave count you can share?
A: Yes, but please remember that the wave count is not predictive. It is confirming. So if the price action, 2 weeks up and 3 months down, goes as expected then, at the low in January or February, we will have the end of wave 2 from the gold price low of 1045. If so then we should expect a strong wave 3 to the upside thereafter. That is not a prediction. When the time is right, the market will signal us. If we get the 2 weeks up and 3 months down, that will be a strong indication that the suggested wave count is correct.
Q: How are political events impacting your analysis?
A: It appears that Trump will win in a landslide. I am not expecting it to be close. A Trump landside would be an indication that the general public is distrustful of government. That is a plus for the price of gold.
The Fixed System
All securities and cash stay with client’s broker or bank. We provide buy and sell orders to client. Client transmits the orders to his bank or broker for execution.
Q: What is the Fixed System?
A: The Fixed System is the application of economic law in a manner consistent with the scientific method to profit from price changes.
Q: What do you mean by scientific method?
A: Using observation to establish facts and then logic to reach useful conclusions that follow from the factually correct premises.
Q: What do you mean by economic law?
A: A useful description of human action related to economic activity. See Human Action by Ludwig von Mises and Man, Economy, and State by Murray Rothbard.
Q: Where do I begin if I want information about how to apply economic law?
A: Start with The Art of Speculation during Civil War — Sun Tzu Meets Jesse Livermore.
Q: These three books amount to over 2,000 pages and the material is sometimes difficult. Do I need to understand all of it before I can use the Fixed System?
A: No, but you’ll get better results if you do. If you want to base your speculation on facts and not falsehoods, on valid conclusions and not fallacious reasoning, then read and study these three books.
Q: Which of the three should I read first?
A: Start with the Q&A in Sun Tzu Meets Jesse Livermore (Appendix A). Then read the entire book, then Mises, and then Rothbard.
Q: I understand that all value is subjective and that in a market economy, the current price will be bid up to the expectation of future price less cost of carry. The same process occurs in reverse when market participants expect the future price to be lower. You use four criteria to measure this and to call the low in the gold market: 1. a break to the downside in the general securities market, 2. extremely negative sentiment indicators, 3. ending wave pattern, and 4. specialist short covering. Is all of this part of the Fixed System?
A: Yes. That all value is subjective is a fundamental law of economics. The system is fixed because economic law and facts are fixed. You can ignore the facts and law but you will suffer the results of ignorance never the less. Economic law is just a binding as the law of gravity.
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