Models Are Still On Track (GLD, $SPX, $VIX)

System Notes: Version 2.0S (Speed) has performed well since the inaugural 7/27 signals. I am anticipating more action going forward. I am excited about the recent changes. I will be posting gold signals (as normal) but adding a sample ‘signal of the month’ bonus. For August it will be equity related ($SPX and $VIX). The US Dollar is planned for September. After that Bonds.

Model Portfolios: Gold = Flat 7/27, August Bonus: S&P 500= Buy 7/27, VIX= Sell 7/27

Nonlinear Trading Themes:

  • CTM150804gGold: Following mid-July massacre (that strangely coincided with my vacation) the GLD fund has basically flat lined. The models are close to issuing a buy but it is not quite there yet. Technically the market is very oversold (bullish). The other side of the coin is, the last 10 days look more like a continuation pattern (bearish). I am anticipating a resolution further in the week. Model Gold portfolio is flat.
  • CTM150804sS&P 500: The 7/27 buy continues to look positive overall but there has been some selling over the past couple of days. Apple woes (which also point to China) are creating angst among the analysts. The modes selling (Jul 31-Aug 4) has not indicated a downside reversal yet. Largecap indexes such as the S&P 500 are a haven in comparison to more tech-weighted fare, and thus should not get the same selling attention. The S&P 500 portfolio is still bullish.
  • CTM150804v$VIX (S&P volatility): The VIX seems to be finding support near the 12 level. However support resistance levels can have a somewhat illusionary quality in volatility index land. If the S&P pushes higher, expect this to go lower. VIX portfolio is still bearish.

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.”