Low End Bounce

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

Technical Read: GLD fell near to the bottom end of the range (approx. 112-117.3, GLD basis) then bounced from the low energetically on Friday. This isn’t bad action for the bulls (nonlinear trading analysis CTM141226generally supports this), unfortunately Friday’s 2 pt bounce was sufficient to make the market overbought in the current range bound environment. We will have to see what happens next week. Gold trading signals: No signal.


  • Catalyst 1 – The US dollar index is still in good shape. Both this and US equities are benefiting from the recent revision in the 3Q GDP up to 5%. This is a very salubrious number from the US and will attract assets from all over the world. Dollar action is bearish for the yellow metal.
  • Catalyst 2 – The S&P 500 is hugging the top end of its recent trading range. Equity bears are looking for technical selling. The bulls are powered by more fundamental factors. The edge is on higher prices here. This is mildly bearish for the gold trading.
  • Bond Trading Signals. I am offering a similar Mummy process for Treasuries. See the “Bond Trading Signals” tab for more info. Currently available.
  • Currency Trading Signals. I will be offering a similar process for currencies (the US Dollar, plus one more) after Jan 31.

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