• 16 hours Immigration Will Go Bust Without $1.2B Bailout
  • 23 hours The Economics Of The Space Race
  • 2 days Why The World's Central Banks Aren't Yet Sold On Renewables
  • 3 days How Much More Cash Can Uber Burn?
  • 3 days Inside The Biggest Counterfeit Gold Scandal In Recent History
  • 3 days EU-U.S. Trade Relations Are Deteriorating
  • 4 days Over 184 Companies Have Bailed On Facebook
  • 4 days BP Sells Petrochemical Business For $5 Billion
  • 4 days U.S. Moves To Secure Domestic Rare Earth Supply
  • 5 days E-Commerce Explodes As Boomers Go Digital
  • 5 days Major U.S. Cities Are Turning To Renewables
  • 6 days Economic Reopening Backfires, COVID Surge Snaps Recovery
  • 6 days How Are Low Car Sales Impacting The Metals Market?
  • 7 days Are Gold Stocks Still Undervalued?
  • 7 days Singapore's $3 Billion Oil Trading Scandal
  • 8 days Luxury Clothing Isn’t A Priority As Americans Grapple With COVID-19
  • 8 days Natural Gas Demand Hits 25-Year Low
  • 9 days Gold Inches Towards $1,800 As Investors Pile Into ETFs
  • 9 days The War On Gold Has Begun
  • 10 days Immigration Attack Will Ruin America’s Tech Dominance
Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

Bob Loukas

Bob Loukas

Bob Loukas is the founder of "The Financial Tap", a membership site dedicated to helping traders and investors navigate the markets while increasing their expertise…

Contact Author

  1. Home
  2. Markets
  3. Other

A Golden Surprise

Golden Gift on Golden Sandy Beach

The surprises are going to the upside for gold, and that is obviously a change in behavior. The miners are roaring higher and are outside of their Bollinger Bands for multiple days, a sure sign of strength. Up until very recently, the Investor Cycle had showed us relatively little to get excited about. But suddenly, eleven weeks into the Cycle and right where you would have expected it to turn lower, gold has found yet another gear.

The most bullish path (from a number of possibilities) has resolved itself this week and we have a solid new Daily and Investor Cycle high. This is by no means (yet) a sign that a new bull market has started, that type of conclusion can only be reached with consecutive higher highs at the Investor Cycle timeframe. I like how the sector has performed here, but let's not forget that all commodities are doing well with a sharply lower dollar. And for those with short term memory issues, let's not forget that gold has a habit of drawing in the gold bulls before unleashing another wave of selling.

However, we do have a monthly Swing Low in play now. Possibly for the first time in years, we're seeing some real buying on demand, as opposed to counter-trending and forced short cover buying. The highs this week have come on week 12, the furthest any Investor Cycle has reached since 2011, and there is potential for further gains now that this is likely a Right Translated Investor Cycle.

In the short term though, some caution is warranted. Gold is well above the Bollinger Bands and significantly overbought. From a Daily Cycle timing standpoint, we're deep into the Cycle and ready to begin a move towards the DCL. Even if the recent October 2nd Low marked a shortened Daily Cycle Low, gold in that case would still be ready to move lower into a Half Cycle Low. The point being, social media is suddenly a buzz over gold and a "new bull market". Everyone is suddenly jumping back in here after an already extended move higher. This is setup to teach the bulls a little trading lesson and to catch them being a little too over-eager. Beyond a possible shake-out, the gold Cycle look very encouraging and a transition away from a bear market could be developing.

$GOLD Gold - Spot Price (EOD) CME
Larger Image

 


The Financial Tap publishes two member reports per week, a weekly premium report and a midweek market update report. The reports cover the movements and trading opportunities of the Gold, S&P, Oil, $USD, US Bond's, and Natural Gas Cycles. Along with these reports, members enjoy access to two different portfolios and trade alerts. Both portfolios trade on varying time-frames (from days, weeks, to months), there is a portfolio to suit all member preferences.

You're just 1 minute away from profitable trades! please visit: http://thefinancialtap.com/

 

Back to homepage

Leave a comment

Leave a comment