Model Gold Portfolio: Now (12/29) “long” previous signal 12/01 “exit long”
Technical Read: The drop in gold today restored short-term the risk/reward reading to an acceptable level. GLD is finding support at the 112-112.5 level (12/01 and 12/22) and unlike the 114 support level, the nonlinear trading analysis indicates 112 should hold. The holiday truncated trading week should help the bulls too. Gold trading signal: We have a buy. This signal is mostly generated as a result of technical models.
- Catalyst 1 – The US dollar index has paused from its recent bullish move. The trend is still up but the greenback may hover here for a while, meaning a limited headwind for gold. If the dollar falls back, it will be a bullish for the yellow metal.
- Catalyst 2 – The S&P 500 continues to inch its way up but after 8 positive days (I am fudging on the 24th) a pause is warranted here as well. Since a down day is due, this is a mild positive for gold.
- May the Mummy watchers enjoy the New Year’s Day festivities, but I would also invite you to take time and ponder the new year: the doors that will be opened, the doors that will be closed and the “brief authority” in which we all operate.
- 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