3-Week Closing High

Model Gold Portfolio: “long trend” Signal date = 12/29

CTM150109Technical Read: Friday’s close was the highest in 3 weeks. The reversal after the mild sell-off on the 8th is also bullish for the yellow metal. Nonlinear trading analysis is still on the side of the bulls.  The only negative is that it would be nice to get a close above the recent intraday high of 117.5 (Jan 6th GLD basis). The Gold signal is still long.

Backdrop:

  • Catalyst 1 – The S&P 500 2-day rally took the edge off the fear factor associated with the recent decline. My work has this now at neutral. The glow of the recent sell off should gold sellers off balance a while longer. This is still a plus for gold.
  • Catalyst 2 –The US dollar index had a down reversal day on Friday but continues to be in a general uptrend. The recent Labor Department report that unemployment dropped to 5.6% in December, highlights that the US economy is one of the brighter bulbs in the show. This is a plus for the dollar versus other currencies. As long as there is a flight-to-quality element to the global ambience, this is going to be a neutral for gold.
  • Bond Trading Signals. I am offering a similar Mummy process for Treasuries. See the “Bond Trading Signals” tab for more info. Currently available.
  • Currency Trading Signals. I will be offering a similar process for currencies (the US Dollar, plus one more) after Jan 31.

GH Garrett – Veteran Commodity Watcher for Conquer the Mummy .com “Nonlinear signals that matter in gold trading.”

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