Model Gold Portfolio: Neutral, last signal 12/01 “exit long”

Technical Read: I posted last time that the GLD 114 nascent support level (partially established Dec 5^th and 16^th) was not confirmed by nonlinear trading analysis. Today’s drop through the level confirms this opinion. We are still in the range (approx. 112-117.3, GLD basis) but rapidly approaching the low end. The next support level is 112, I think this is more likely to hold than 114, however a buy signal has not been generated yet. No signal.

Backdrop:

• Catalyst 1 – The UD dollar index has moved north and taken out the monthly highs. Dollar action is bearish for the yellow metal.
• Catalyst 2 – The S&P 500 is not retreating from the near-term resistance (approx. 2080). Traders should be wary that a breakout is likely. A move higher would be bearish for the yellow metal.
• Ponderable – May the mummy watchers have a considerable amount of Christmas cheer on the 25^th!
• Bond Trading Signals. I am offering a similar Mummy process for Treasuries. See the “Bond Trading Signals” tab for more info.

GH Garrett – Veteran Commodity Watcher for ConquerTheMummy.com