Model Notes: January opened up with a China-inspired market selloff that had all the subtlety of a cannon salvo coming out of the mist. I have come to believe that non-linear analysis carries with it, some ability to see into the future. Hence the gold portfolio was on the right side of the surprise.
Additional: In the past, I featured Gold (in the form of the GLD fund) as a non-rotational signal chart on ConquertheMummy.com postings. I am changing the status from non-rotational to “core.” The effect is that I will be posting signal charts for gold on odd numbered months, and wheat for even months
Featured market rotation: S&P for January! Core market is gold.
Model Portfolio Signals: (Gold, GLD basis) buy signal = 12/17 (TSP=102.04).The $S&P is Neutral.
Note: TSP is calculated by using the closing price of the trading day after the signal day. It is more realistic for trading calculations.
Nonlinear Trading Themes:
- Gold (current core market): The jarring China sell off put a dose of pep in the step of gold, helping our previous long signal in this market. From a chart standpoint, the new year strength formed a higher bottom and setting a bullish tone for the yellow metal. Sellers should become more wary and this should lead to higher prices. The model gold portfolio remains long.
- S&P 500 (Jan. featured market): Monday’s selling made me wonder if we could get a buy signal with the inclusion of Tuesday’s data. But alas the models are NOT signaling the weakness is over yet. Monday’s intraday lows were a hair lower than the Dec 14 lows. The bears are not through yet. The models are skeptical for initiating a position now. The S&P model is flat.
Note: Non linear trading theme comments are based on interpretations of non-linear trading models, combined with chart price action (technical analysis).
- I am now offering a more a la carte fee system for CTM research. Purchasers can now mix and match signals on various symbols that are currently available. Click on the ‘Fees’ tab for more info.
- With deflationary forces becoming more dominant, top level, successful, investment strategies are going to become more reliant on ‘activity’ (trading). Check out ConquerTheMummy.com for trading signals that help!
- Remember: Nonlinear trading analysis is “insider knowledge” (non-apparent) for standard technical analysis.
- The post-mortems for the recent US dollar and the VIX featured markets have been posted. To view it select the “Forex” or “US Equity” tabs (respectively) on ConquerTheMummy.com.
GH Garrett – Veteran Market Watcher for ConquertheMummy.com © 2015, “Nonlinear signals that matter in gold trading.”