Breakout (SPX)

Model Notes: Last week nonlinear analysis indicated a breakout ahead. Friday it happened. So the model is in sync. Gold is punching lower but the current nonlinear readings still have the yellow metal in a trading range. Missing a few vigorous down days is certainly better than if the Mummy was long it. The yellow metal is still a wait and see situation.

March Rotations: Core Gold, Featured: S&P 500.

Model Portfolio Signals: GLD flat, S&P 500 buy on 3/08 (TSP= 1989.26)

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:

  • CTM160314gGold (Mar. core market) It looks like the previous call that the 122 (GLD basis) resistance level would hold is becoming reality. But the 115 support level could hold as well. I am waiting for more clarity on this. GLD is flat and we are avoiding considerable short-term volatility.
  • CTM160314sS&P 500 (Mar. feature): The S&P 500 broke out on Friday. Today’s action ended on a mild down note but not really a meaningful reversal. The sky continues to look bright. The model stock portfolio is still long.

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.”