Gutsy Buy Paying Off (SPX)

Model Notes: The S&P buy (TSP near 1880) was a gutsy call at the time but Friday’s action managed close the market north of the entry point. So we are in sync on the equities. Early week action for gold was not as helpful for the Mummy. Our sell level (over 106) was excellent but this week the yellow metal creeped back up (closing the week at 105). So we are in sync but we will be watchful this week.

Market rotation: S&P (US Bonds for Feb), Core market rotation:  Gold (wheat for Feb)

Model Portfolio Signals: (Gold, GLD basis) Sell signal = 1/06 (TSP=106.15).The $S&P is now long 1/14 (TSP=1880.33).

Note: TSP is calculated by using the closing price of the trading day after the signal day. It is more realistic for trading calculations/evaluations.

Nonlinear Trading Themes:

  • CTM160122gGold (current core market): The gold market put together a rally against the down trend not enough to take out the previous high. If stocks can hold it together, I would expect it would siphon off buyers of the yellow metal. The model gold portfolio is still short.
  • CTM160122wWheat (Feb core market): I am starting the cycle early as I have identified a buy based on Friday’s data. Here we go!
  • CTM160122sS&P 500 (Jan. featured market): We have a buy signal based on today’s data with the TSP coming based on tomorrow’s trading. The S&P 500 is very oversold and quite a bit of negative news has come out. The market is paused for a rebound here and the models are confirming this. The S&P model is now positive.
  • US Bonds (Feb Feature, no chart provided): I am very, very eager to apply my latest models to this market. Our first encounter was not the best for the Mummy. Round two is about to begin!

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  © 2015-2016, “Nonlinear signals that matter in gold (and wheat)  trading.”