CEF.A, Central Fund

See our previous blog of Aug 21, 2011. It was trading at around $26, now it is at $20 and has been below that.

cef.a 2012

In three different publications I have seen the action over the past year described as a triangle. It is not, period. Ralph Nelson Elliott who described the different patterns in detail, from empirical observations of course, would not accept a “triangle” if the boundary were in the same direction, they simple cannot both be down. I believe that Glen Neely later expanded the repertoire to include such structures which he called “running triangle”. So I guess it all depends on whether or not you are old school or new school. In any event it does not matter that much as if you were to use a-b-c, with the c as a wedge, you end up with the same end result.  As far as I am concerned, anything can happen from here on, the light is amber.