Eye of the Needle

Model Gold Portfolio: Neutral (1/13), previous long (12/29)

CTM150123Technical Read: Gold paused its upward move the last three trading sessions. The yellow metal is now balanced on the edge: overbought (bearish factor) but trending up (bullish factor) as well. The trick is getting an entry and not getting whipsawed. I am waiting for nonlinear trading analysis readings to confirm a safe entry.


  • Catalyst 1 – The S&P 500 rebounded off the recent lows (14th and 16th) and the upward forecast is promising. Mildly bearish for gold..
  • Catalyst 2 –The US dollar index advanced as recent events (Swiss National Bank surprise announcement and the ECB quantitative $1.3t program) are underpending two classic fundamental factors (uncertainty and a weakening euro) that are positive for the greenback. This would normally be a considerable headwind for gold but is a neutral for now as both factors are supportive for the yellow metal as well.
  • Catalyst 3 – The recent death of Saudi Arabian King Abdullah provided a blip headline on the news front this week. The quick succession plan by the Saudi royal family seemed to minimize possible market disruptions, The question is: Can Islamic extremists use their influence to destabilize the kingdom in the future?
  • 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 “Nonlinear signals that matter in gold trading.”