Model Gold Portfolio: “long” Signal date = 12/29
Technical Read: The last week of trading featured daily hefty market swings that really did not form a trend, however the price action did confirm the recent lows (112.5 GLD basis). Nonlinear trading analysis indicates the highs established on the 30th (116.25 GLD basis) will not halt the upward pressure. The gold trading signal is still long..
Backdrop:
- Catalyst 1 – The S&P 500 really continued the rollover today. Chart support is still 50 points away. Big cap stocks are wrestling with global slowing with the new touchstone being Greece (possible leftist gains resulting in some type of Euro decoupling). This is positive for gold.
- Catalyst 2 –The US dollar index pushed north on the back of many of the reasons stocks are going down. This is normally a headwind for gold prices but as gold is also a candidate for flight-to-safety buying, it can be a near-term neutral.
- 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 will be offering a similar process for currencies (the US Dollar, plus one more) after Jan 31.
GH Garrett – Veteran Commodity Watcher for Conquer the Mummy .com