Global Deflation Fears Roil Stocks (and everything else) (GLD, SPX, VIX and USD)

System Notes: The equity meltdown has changed the current trends (at least in the short-term. Equity-related pain has provided one “silver” lining: an opportunity to take our first public currency trade and set up for the featured September market, The USD starts with a buy.

Featured market rotation: Equities for August, US Dollar for September and Bonds for October. Gold is non-rotational. Starting USD early!

Model Portfolios: Gold = Flat 8/17, S&P 500= Buy 7/27, VIX=Sell 7/27, USD = Buy 8/20

Nonlinear Trading Themes:

  • CTM150820gGold: It is great not to be short. Gold is bounding higher on the equity meltdown. The model gold portfolio is flat today.
  • CTM150820sS&P 500 (August Featured Market): Largecaps gave up the ghost Thursday, pushing the current signal to its first losing close versus the 7/27 signal. I am eager to see how the models judge this. Have we hit a short-term bottom? The S&P 500 portfolio is still bullish.
  • CTM150820v$VIX (S&P volatility) (August Featured Market): Volatility bulls love an equity selloff like this. Is there anything tradable here? Probably not yet. VIX portfolio is still bearish.
  • CTM150820uUS Dollar (Sept Featured Market): I wanted to get this signal going before Sept 1, so that we would enjoy a full September of currency speculation. The stock meltdown has afforded a good opportunity to buy. US Dollar portfolio is now bullish.

Note: Technical analysis comments are based on interpretations of non-linear trading models, combined with chart price action.

Premium offers:

  • 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 am now offering a similar Mummy process for currencies. This service will involve two signal paths, one on the US dollar and the other on a user selected second currency (1+1).The fee will be the same as the Bond trading signals. Currently available.
  • We now offer S&P 500 signals (along with the choppy $VIX). This index is a mainstay among financial participants and traders around the world. Sign-up for exclusive signals to give you the edge. Currently available.

GH Garrett – Veteran Commodity Watcher for  © 2015, “Nonlinear signals that matter in gold trading.”