Model Notes: The gold market weakens and the theoretical signal price (TSP) ‘sell’ price proved to be the highest value for the last 30 days. The gold model is in sync. The S&P model signaled a buy today. The upcoming days will prove whether this is good but the fact the model avoided getting clobbered (it was flat) in the first week of January is enough to register the equity model to be in sync as well.
Featured market rotation: S&P (January), Core market rotation: Gold.
Model Portfolio Signals: (Gold, GLD basis) Sell signal = 1/06 (TSP=106.15).The $S&P is now long 1/14 (TSP=waiting).
Note: TSP is calculated by using the closing price of the trading day after the signal day. It is more realistic for trading calculations/evaluations.
Nonlinear Trading Themes:
- Gold (current core market): The yellow metal had a tough day. If you think about it, the recent market weakness and the China economic deceleration point to disinflation and that is not great backdrop for gold. Technically, the Jan. 7 top appears intact. The model gold portfolio is short, positioned for retest of the lows of December.
- S&P 500 (Jan. featured market): We have a buy signal based on today’s data with the TSP coming based on tomorrow’s trading. The S&P 500 is very oversold and quite a bit of negative news has come out. The market is paused for a rebound here and the models are confirming this. The S&P model is now positive.
Note: Non linear trading theme comments are based on interpretations of non-linear trading models, combined with chart price action (technical analysis).
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GH Garrett – Veteran Market Watcher for ConquertheMummy.com © 2015-2016, “Nonlinear signals that matter in gold trading.”