Gold Price Exclusive Update Shows Sector Cycle Worst Plunging In Years

Our proprietary cycle indicator is down, now at the lowest level in years.

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 the end of February.

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.

Analysis

Our ratio is on sell signal.

Speculation is pulling back from the recent new high.

We identified the five wave structure a few weeks ago, and expected a multi week correction.

This week, prices broke below the top of wave1 at 175, invalidating our impulsive/corrective scenario.

GDX was rejected by resistance last week, and broke support this week.

Summary

Long-term – on major buy signal.

Short-term – on sell signals.

Gold sector cycle is down.

Our long-term outlook is now bearish, and may liquidate our core holdings upon a relief rally.

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.