100114 – Short Again!

Model Gold Portfolio: Now short, 100114 (from Neutral, 9/19 signal)

CTM141001Technical Read: Gold has been trying to form a trading bottom for almost 2 weeks, but it has been a sloppy, ill-defined bottom with not much conviction. Today my readings indicate the recent lows are not going to hold and Mummy watchers should expect lower prices ahead.

Backdrop:

  • Catalyst 1 – The dollar strength is throttling gold. Today gold managed an up day but one wonders if it would have been so if the S&P 500 hadn’t dropped 26 points. This is bearish for the yellow metal.
  • Catalyst 2 – The varied geo-political concerns (Hong Kong, Middle East and Ebola virus) are not really pumping the bulls here. The may provide some support going into a weekend. Mildly bullish.
  • US Government Bond research. I am offering a similar process to the gold comments for bonds. See the “Bond” tab for more info. Recently (9/19), the bond readings changed from short to exit short (neutral) and this has been a productive signal.

GH Garrett – Veteran Commodity Watcher for Conquer the Mummy.com