Gold Price Exclusive Update Shows Sector Cycle Is Consolidating

Our proprietary cycle indicator is now up.

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 remains on long-term buy at month end.

GLD is on short-term buy signal.

GDX is on short-term buy signal.

XGD.to is on short-term buy signal.

GDXJ is on short-term buy signal.

Analysis

Our ratio gave us a text book perfect TLBBS at the 200ema this week, as it did in Oct.

Long term is bullish.

A classic study of a bull market: we are now in an impulsive phase after a two year corrective phase.

GDX closed above resistance this week.

Next resistance is at $50.

Our Canadian cousin also broke resistance this week.

Next resistance is at $25.

Summary

Long-term – on major buy signal.

Short-term – on buy signals.

Gold sector cycle is up.

We are holding long-term positions, and may add to positions.

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.

We also provide coverage to the major indexes and oil sector.