Model Notes: Both the gold and real markets are getting back in sync with the signals. (short and long respectively) as fundamentals start to take over from the shock of the San Bernardino terror attack. This is good!
Featured market rotation: .Brazilian real for December.. S&P for January(!). Gold is currently non-rotational.
Model Portfolio Signals: (Gold) sell signal = 12/02 (TSP=101.76), The Brazilian real is going flat today 12/15 (TSP=waiting).
Note: TSP is calculated by using the closing price of the trading day after the signal day.
Nonlinear Trading Themes:
- Gold: Gold continues to “creep” down in the aftermath of the Dec 4 spike. The impending expectations of a fed tighten are not playing well with the yellow metal. Higher rates mean a stronger dollar and a more potent governor on inflation, both of which are negative in this area. The next GLD support is at 100, and I expect a revisit to that area. The model gold portfolio is remains short.
- Brazilian Real (Dec. Featured Market): The real picked up some strength and the model signaled an “exit Long” signal. Initially, it looks good as we are at the high end of the monthly range. The less than inspiring entry level hurt the favorable possibilities on this trade. We need another day before we can see if the trade was profitable. The real model is now flat..
Note: Non linear trading theme comments are based on interpretations of non-linear trading models, combined with chart price action (technical analysis)..
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GH Garrett – Veteran Market Watcher for ConquertheMummy.com © 2015, “Nonlinear signals that matter in gold trading.”