Technical Read: Gold dropped precipitously Friday, and dropped through recent support (120 level, GLD basis). Does this automatically mean to sell (go short)? No. Nonlinear trading analysis readings are still supportive and near-term price action is oversold. We would have liked to miss Friday’s decline but a bounce is more likely than not. The long signal continues to be viable.
- Catalyst 1 – Bigcaps hit sellers Friday, at the top end of the range (2070, S&P 500 basis). This was generally expected. US blue chips are looking for direction, caught between superior US growth expectations (bullish) and global deflation/slowdown fears (bearish). This is 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 am now offering a similar Mummy process for currencies. This service will involve two signal paths, one on the US dollar and the other on a user selected second currency (1+1).The fee will be the same as the bond trading signals. Currently available.
GH Garrett – Veteran Commodity Watcher for Conquer the Mummy .com “Nonlinear signals that matter in gold trading.”