Technical Read: The uptend detected earlier proved to be a catapult for gold prices as nervous bears ceased selling and rising prices triggered buy stops (i.e. more buying) leading to a hyperbolic one-day price move. The action triggered a “exit-Long” signal for the model portfolio today, moving it to neutral (aka “flat”). Please be advised an “e-L” does not mean the uptrend has reversed but does indicate 2 events. A) The model portfolio is now neutral and B) the risk/reward ratio is no longer favorable for a bullish position. No GLD watcher should be mystified at an exit after a daily net-change of over $4.25. This was an excellent (profitable) ending for the June 5 entry. Taking a profit is generally a good thing. The mummy got thumped.
What is next now? The bears were simply routed as we approached a weekend with increasing signs that things are not going well for the government in Bagdad (i.e. reports of ISIS flags flying over a “key” refinery and US military advisors gearing up for deployment). We will continue to monitor events, being “flat” can be a good thing if gold becomes overly news oriented here.