Model Notes: The models are still on track, with both gold and the US dollar exhibiting positive performance (i.e. both markets are higher than their TPSs). The Fed action (or inaction) is behind us. China and a possible US Government showdown may be the geo-political factors the models have to deal with in the near-term.
Featured market rotation: Equities for August, US Dollar for September and Bonds for October. Japanese yen for November. Brazilian real for December. Gold is currently non-rotational. Going forward, I will be looking for a pre-October signal for bonds.
Model Portfolio Signals: (Gold) Buy = 9/08 (TSP=106.13), (USD) Buy = 9/17 (TSP=95.00)
Nonlinear Trading Themes:
- Gold: Gold bounced off support at the mid-September base (105.50 GLD basis) and the recent selling days on the 21st and 22nd have not reversed that. The model gold portfolio remains long.
- US Dollar (Sept Featured Market): The dollar’s knee-jerk reaction to the Fed decision proved to be an excellent trading buy point. The greenback is now at the top of the three-week trading range. Current indications are not for a reversal. The US dollar portfolio is now long.
Note: Technical analysis comments are based on interpretations of non-linear trading models, combined with chart price action.
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GH Garrett – Veteran Market Watcher for ConquertheMummy.com © 2015, “Nonlinear signals that matter in gold trading.”