Gold Price Exclusive Update

Our proprietary cycle indicator is down.

To public readers of our updates, our cycle indicator is one of the most effective timing tool for traders and investors. It is not perfect, because periodically the market can be more volatile and can result in short term whipsaws. But overall, the cycle indicator provides us with a clear direction how we should be speculating.

Investors

During a major buy signal, investors can accumulate positions by cost averaging at cycle bottoms, ideally when prices are at or near the daily 200ema.

During a major sell signal, investors should be hedged or in cash.

Traders

Simply cost average in at cycle bottoms when prices are at or near the daily 200ema; and cost average out at cycle tops when prices are above the daily 50ema.

Gold sector is on major buy signal since early 2016.

Major signals can last for months and years and are more suitable for long-term investors.

Speculation is now at the level of the Dec 2015 low.

Our ratio between gold and gold stocks is on short-term sell signal.

UUP, ETF for USD gapped up on Friday, question is, an exhaustion gap or breakaway gap?

Over the years, my observation on such a gap after an extended rally is often an exhaustion gap.

FXE, ETF for the Euro may help shed some light.

Friday’s gap had the lightest volume relative to the two previous gaps, signs of selling exhaustion.

GLD is on short-term sell signal.

GDX is on short-term sell signal.

XGD.to is on short-term sell signal.

GDXJ is on short-term sell signal.

Summary

Long-term – on major buy signal.

Short-term – on sell signals.

Gold sector cycle is down.

COT data is at a compelling level for a major bottom.

From a contrarian point of view, the current extreme bearish sentiment is an excellent buying opportunity for long term investors.

We are holding gold related ETFs for long-term gain.

Disclosure

We do not offer predictions or forecasts for the markets. What you see here is our simple trading model which provides us the signals and set ups to be either long, short, or in cash at any given time. Entry points and stops are provided in real time to subscribers, therefore, this update may not reflect our current positions in the markets. Trade at your own discretion.

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